Volkswagen (VWAPY)
OTHER OTC:VWAPY
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Volkswagen
(OTC:VWAPY)
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Rating:56Neutral
Price Target:
$11.00
▼(-8.10% Downside)
Action:Reiterated
Date:05/30/26
The score is held back primarily by weakening financial performance, especially persistent negative free cash flow alongside higher leverage and margin/return compression. This is partially offset by attractive valuation (low P/E and solid dividend yield) and moderately positive near-term technical momentum.
Positive Factors
Diversified revenue streams
Volkswagen’s multi-channel revenue model (vehicle sales plus financial services, after-sales parts, and growing software/digital offerings) creates durable cash-flow diversification. This reduces reliance on single-market vehicle cycles and supports cross-sell, recurring income and resilience over the medium term.
Negative Factors
Rising leverage
Material increase in leverage reduces financial flexibility and raises interest and refinancing risk. Higher debt magnifies exposure to demand or margin shocks, constrains capital allocation for EV investment and dividend support, and lengthens recovery time after cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Volkswagen’s multi-channel revenue model (vehicle sales plus financial services, after-sales parts, and growing software/digital offerings) creates durable cash-flow diversification. This reduces reliance on single-market vehicle cycles and supports cross-sell, recurring income and resilience over the medium term.
Read all positive factors
Volkswagen (VWAPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.74B
Dividend Yield5.92%
Average Volume (3M)9.05K
Price to Earnings (P/E)6.4
Beta (1Y)0.80
Revenue Growth5.72%
EPS Growth-28.86%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.17
Shares Outstanding2,062,050,000
10 Day Avg. Volume7,841
30 Day Avg. Volume9,055
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.30
Price to Sales (P/S)0.17
P/FCF Ratio-5.75
Enterprise Value/Market Cap6.14
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.09
Enterprise Value/Ebitda5.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.31
Revenue Forecast (FY)$379.65B
Volkswagen Business Overview & Revenue Model
Company Description
Volkswagen AG is a prominent global automotive group that primarily designs, produces, and distributes vehicles across Europe, North America, South America, and the Asia-Pacific regions. The conglomerate's operations are diversified across four ke...
How the Company Makes Money
Volkswagen primarily makes money through (1) selling vehicles and (2) providing automotive-related financial services, with additional contributions from parts, service, and software/digital offerings.
1) Vehicle sales (Automotive segment)
- New ...
Volkswagen Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear operational and strategic progress (BEV ramp, product launches, cost reductions, battery and software milestones, improved Q4 cash flow) but also significant near-term financial challenges (large special items and impairments, substantial tariff costs, depressed reported margins, and ramp-related losses for technology and battery units). Management communicated concrete remediation actions and credible medium/long-term targets (operating return on sales 8–10% by 2030, automotive cash conversion >60%), while 2026 guidance reflects a cautious near-term outlook.Positive Updates
Stable Deliveries and BEV Momentum
Group delivered nearly 9.0 million vehicles in FY2025 (broadly in line with prior year). Global BEV deliveries increased ~32% year-on-year to c.983,000 units, raising BEV share to c.11% (from 8%). In Europe specifically, BEV sales rose ~66% YoY with a reported ~27% BEV market share and the Group held a 25% market share in Europe (deliveries +4%).
Negative Updates
Sharp Decline in Reported Operating Profit and Margin
Reported operating profit fell ~53% to EUR 8.9 billion with a reported operating margin of 2.8%. Special items (EUR 5.9 billion) and U.S. tariffs (c. EUR 2.9 billion since April 2025) materially depressed reported results.
Read all updates
Q4-2025 Updates
Positive
Negative
Stable Deliveries and BEV Momentum
Group delivered nearly 9.0 million vehicles in FY2025 (broadly in line with prior year). Global BEV deliveries increased ~32% year-on-year to c.983,000 units, raising BEV share to c.11% (from 8%). In Europe specifically, BEV sales rose ~66% YoY with a reported ~27% BEV market share and the Group held a 25% market share in Europe (deliveries +4%).
Read all positive updates
Company Guidance
Volkswagen's guidance for 2026 calls for group sales revenue to be broadly stable, in a 0–3% range, with an operating return on sales of 4.0–5.5%, an automotive investment ratio of 11–12%, automotive net cash flow of EUR 3–6 billion and group net liquidity of about EUR 32–34 billion (assuming the tariff environment at end‑February); management reaffirmed a dividend policy of at least 30% (proposing EUR 5.26 preferred / EUR 5.20 ordinary for FY2025) and said roughly one‑third of available cash flow in the 2026–2030 plan will be used to strengthen the balance sheet and shareholder returns. Looking to 2030, VW reiterated an ambition of an 8–10% operating return on sales and >60% cash conversion in the automotive division, with an intermediate investment‑ratio target of ~10% in 2027 moving toward ~9% by 2030; these targets are set against 2025 baselines of EUR 322 billion revenue, EUR 8.9 billion operating profit (reported RoS 2.8%; 4.6% adj.; 5.5% excl. tariffs) and automotive net cash flow of EUR 6.4 billion.Volkswagen Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 308.55B | 309.21B | 324.65B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 70.10B | 70.06B | 59.47B | 60.98B | 52.18B | 47.24B |
| EBITDA | 48.37B | 46.57B | 51.60B | 50.74B | 50.01B | 46.69B |
| Net Income | 6.49B | 7.03B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | ||||||
| Total Assets | 666.78B | 665.51B | 632.90B | 600.34B | 564.77B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 79.51B | 68.29B | 73.45B | 50.91B | 70.77B | 66.88B |
| Total Debt | 291.86B | 278.86B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 475.57B | 476.81B | 436.17B | 410.43B | 386.44B | 382.45B |
| Stockholders Equity | 176.35B | 173.93B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | ||||||
| Free Cash Flow | -7.26B | -8.97B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 17.06B | 14.42B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -27.96B | -26.06B | -31.57B | -19.82B | -41.82B | -26.13B |
| Financing Cash Flow | 22.30B | 11.11B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen Technical Analysis
Negative
11.97
Price Trends
10.31
Negative
10.72
Negative
11.09
Negative
Market Momentum
-0.09
Positive
37.19
Neutral
38.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAPY, the sentiment is Negative. The current price of 11.97 is above the 20-day moving average (MA) of 10.31, above the 50-day MA of 10.31, and above the 200-day MA of 11.09, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.19 is Neutral, neither overbought nor oversold. The STOCH value of 38.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VWAPY.
Volkswagen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $203.80B | 9.43 | 10.10% | 2.57% | 6.73% | -16.97% | |
62 Neutral | $1.50T | 334.15 | 4.79% | ― | 2.25% | -39.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $71.49B | 28.70 | 3.96% | 0.69% | -2.03% | -63.41% | |
56 Neutral | $46.74B | 6.37 | 3.77% | 5.92% | 5.72% | -28.86% | |
55 Neutral | $56.02B | -9.18 | -14.72% | 5.64% | 3.82% | -209.77% | |
55 Neutral | $34.08B | -13.43 | -3.53% | 4.19% | 1.63% | -158.78% |
* Consumer Cyclical Sector Average
VWAPY
Volkswagen
9.66
-0.38
-3.75%
F
Ford Motor
14.06
3.82
37.25%
GM
General Motors
79.29
31.21
64.91%
HMC
Honda Motor Company
26.26
-1.85
-6.59%
TSLA
Tesla
400.49
51.81
14.86%
TM
Toyota Motor
173.94
3.06
1.79%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.