Volkswagen (VOW3) AI Stock Analysis

• Market Cap: €49.01B
• Dividend Yield: 9.44%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.09
• Revenue Growth: 1.62%
• EPS Growth: -38.38%
• Country: DE
• Employees: 639,608
• Sector: Industrials
• Sector Strength: 77
• Industry: Auto - Manufacturers
• EPS (TTM): 3.69
• Shares Outstanding: 206,205,440
• 10 Day Avg. Volume: 953,291
• 30 Day Avg. Volume: 1,209,627
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €111.58
• Price Target Upside: 16.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Volkswagen's strong financial performance, particularly in revenue growth and profitability, is the primary driver of its stock score. While the company maintains operational efficiency, high debt levels and negative Free Cash Flow require careful management. The undervaluation of the stock, alongside a high dividend yield, adds to the appeal. However, mixed technical indicators suggest cautious optimism, with potential short-term volatility. Overall, Volkswagen presents a solid investment opportunity, but attention to debt and cash flow is necessary.

Positive Factors

Financial Performance

Q3 EBIT was €2.86bn, in line with consensus, ahead of forecast of €2.5bn.

Free Cash Flow

FCF was €3.4bn, ahead of consensus of €1.7bn.

Profitability

Audi's underlying EBIT margin was just above 8%, likely making Audi the most profitable premium brand in Q3.

Negative Factors

Cost-Cutting Measures

VW wants to close 'at least' three factories in Germany and downsize the remaining plants.

Job Cuts

Tens of thousands of jobs are at risk due to potential plant closures and cost-cutting measures.

Strategic Uncertainty

The Executive Board still has not yet presented a coherent overall concept for how it wants to strategically lead Volkswagen into the future.

Volkswagen Business Overview & Revenue Model

Company Description

Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; and light commercial vehicles; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, Audi, KODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti brands. Volkswagen AG was founded in 1937 and is based in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

How the Company Makes Money

Volkswagen makes money primarily through the sale of automobiles and commercial vehicles across its extensive brand portfolio. The company generates significant revenue from the manufacturing and sale of passenger cars and light commercial vehicles, with a large portion of sales coming from its core brands like Volkswagen, Audi, and Porsche. Additionally, Volkswagen earns money from its financial services division, which provides leasing, financing, and insurance solutions to individual and business customers. The company also benefits from strategic partnerships and joint ventures, particularly in emerging markets, which help expand its market reach and production capabilities. Furthermore, Volkswagen invests in research and development to innovate in areas such as electric and autonomous vehicles, which are anticipated to be future revenue drivers.

Volkswagen Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
324.65B	322.28B	279.05B	250.20B	222.88B
	Gross Profit
59.47B	61.02B	52.18B	47.24B	38.95B
	EBIT
19.06B	22.58B	22.11B	19.27B	9.68B
	EBITDA
51.60B	49.94B	50.01B	46.69B	36.35B
	Net Income Common Stockholders
11.35B	16.60B	15.46B	15.38B	8.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.45B	74.91B	70.77B	66.88B	59.27B
	Total Assets
632.90B	600.34B	564.77B	528.61B	497.11B
	Total Debt
196.52B	193.97B	178.44B	183.37B	174.31B
	Net Debt
156.22B	150.52B	149.26B	143.65B	140.40B
	Total Liabilities
436.17B	410.43B	386.44B	382.45B	368.33B
	Stockholders Equity
182.29B	175.69B	165.38B	144.45B	127.05B
Cash Flow		Free Cash Flow
-10.29B	-6.44B	5.83B	20.14B	7.16B
	Operating Cash Flow
17.15B	19.36B	28.50B	38.63B	24.90B
	Investing Cash Flow
-31.57B	-19.81B	-41.82B	-26.13B	-22.69B
	Financing Cash Flow
11.14B	16.01B	4.22B	-7.75B	7.64B

Volkswagen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 95.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VOW3, the sentiment is Neutral. The current price of 95.62 is above the 20-day moving average (MA) of 91.95, below the 50-day MA of 98.52, and above the 200-day MA of 93.44, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:VOW3.

Volkswagen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOW3	73 Outperform	€49.01B	5.21	5.52%	9.44%	1.62%	-38.38%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%