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Volkswagen AG
(OTC:VWAGY)
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Rating:58Neutral
Price Target:
$9.50
▲(9.07% Upside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by pressured profitability and persistently negative free cash flow, alongside a clearly bearish technical trend. These are partially offset by inexpensive valuation (low P/E and high dividend yield) and an earnings-call picture showing solid liquidity and improved H1 cash generation, though execution and regional headwinds remain material.
Positive Factors
BEV demand and product execution
Rapid growth in the BEV order book and strong early demand for new entry models indicate improving product-market fit in a strategically important segment. Shared-platform synergies also support scalable launches and may strengthen Volkswagen’s competitive position as electrification expands.
Negative Factors
Severe China market weakness
The scale of Volkswagen’s China delivery decline indicates a substantial regional competitiveness and demand challenge rather than a brief monthly fluctuation. Continued weakness can reduce group volumes, limit joint-venture earnings, and pressure the brand portfolio in a strategically important market.
Read all positive and negative factors
Positive Factors
Negative Factors
BEV demand and product execution
Rapid growth in the BEV order book and strong early demand for new entry models indicate improving product-market fit in a strategically important segment. Shared-platform synergies also support scalable launches and may strengthen Volkswagen’s competitive position as electrification expands.
Read all positive factors
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.47B
Dividend Yield7.79%
Average Volume (3M)41.25K
Price to Earnings (P/E)6.5
Beta (1Y)0.77
Revenue Growth6.37%
EPS Growth-32.64%
CountryUS
Employees662,942
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.00
Shares Outstanding2,950,898,200
10 Day Avg. Volume0
30 Day Avg. Volume41,246
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.30
Price to Sales (P/S)0.17
P/FCF Ratio-5.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.50Price Target Upside32.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.93
Revenue Forecast (FY)$367.29B
Volkswagen AG Business Overview & Revenue Model
Company Description
Volkswagen AG, established in Wolfsburg, Germany, in 1937, operates as a subsidiary of Porsche Automobil Holding SE. This global automotive group is primarily engaged in the manufacturing and distribution of vehicles across key regions including E...
How the Company Makes Money
Volkswagen AG primarily makes money through two broad segments: Automotive and Financial Services.
1) Automotive revenue streams
- Vehicle sales: The largest revenue driver is selling vehicles (passenger cars and commercial vehicles) through whol...
Volkswagen AG Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The call highlighted strong liquidity, markedly improved cash generation, robust BEV order momentum, disciplined investment cuts and an ambitious, detailed 2030 transformation plan. However, significant near‑term headwinds remain: a sharp China market contraction, substantial tariff burdens, negative price/mix and volume impacts, a large overhead gap versus peers and the need for extensive workforce and portfolio restructuring. The management stance is proactive and constructive, but execution and timing risks are material.Positive Updates
Stable Group Revenue
Group sales revenue remained broadly stable at EUR 158 billion in H1 2026 versus prior year, demonstrating resilience despite weak markets.
Negative Updates
Severe China Market Decline and Impact on Deliveries
China market contracted ~20% in H1 2026; Volkswagen China deliveries fell ~26% in H1 and 37% in Q2. Proportionate operating profit from China JVs was modest at EUR 184 million, and China weakness remains the principal regional headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Group Revenue
Group sales revenue remained broadly stable at EUR 158 billion in H1 2026 versus prior year, demonstrating resilience despite weak markets.
Read all positive updates
Company Guidance
Volkswagen reiterated 2026 guidance and laid out detailed 2030 targets: for full‑year 2026 it expects sales revenue about -3% y/y, an operating return on sales of 4.0–5.5%, automotive net cash flow of EUR 3–6bn and net liquidity of EUR 32–34bn. In H1 2026 VW reported sales revenue of EUR 158bn, operating profit EUR 5.9bn (3.8% margin; 4.3% excl. special items), automotive net cash flow EUR 3.2bn and net industrial liquidity EUR 32.7bn; group deliveries were ~4.1m (-6%), order intake rose 4% to 2.1m with an order book of ~1.1m vehicles and BEV orderbook +57% y/y to 330k (31% of the European order book). The group‑target‑picture for 2030 aims for a group operating margin of 8–10%, automotive cash conversion >60%, an overhead cost ratio of ~12% (vs ~16% today, implying ~EUR 11bn in overhead savings), an investment ratio around 9% (vs 10.6% in H1), a streamlined model lineup (up to -50% models), steep option/parts simplifications (up to -75% options, up to -90% complexity on some components), capacity aligned to ~9m units (breakeven <8m) and further workforce reductions of roughly 50,000 beyond prior programs.Volkswagen AG Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 308.94B | 309.21B | 324.65B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 67.86B | 70.06B | 59.47B | 60.98B | 52.18B | 47.24B |
| EBITDA | 49.13B | 46.57B | 51.60B | 50.74B | 50.01B | 46.69B |
| Net Income | 5.50B | 7.03B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | ||||||
| Total Assets | 669.35B | 665.51B | 632.90B | 600.34B | 564.77B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 72.62B | 68.29B | 73.45B | 50.91B | 70.77B | 66.88B |
| Total Debt | 198.28B | 278.86B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 466.89B | 476.81B | 436.17B | 410.43B | 386.44B | 382.45B |
| Stockholders Equity | 187.72B | 173.93B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | ||||||
| Free Cash Flow | -6.01B | -8.97B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 17.38B | 14.42B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -27.05B | -26.06B | -31.57B | -19.82B | -41.82B | -26.13B |
| Financing Cash Flow | 15.17B | 11.11B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen AG Technical Analysis
Negative
8.71
Price Trends
8.77
Negative
9.11
Negative
10.03
Negative
Market Momentum
-0.28
Positive
29.83
Positive
0.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAGY, the sentiment is Negative. The current price of 8.71 is below the 20-day moving average (MA) of 8.82, below the 50-day MA of 8.77, and below the 200-day MA of 10.03, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 29.83 is Positive, neither overbought nor oversold. The STOCH value of 0.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VWAGY.
Volkswagen AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $219.47B | 8.13 | 11.67% | 3.31% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.40T | 314.06 | 4.58% | ― | 11.75% | -37.64% | |
59 Neutral | $69.59B | 39.14 | 3.04% | 0.88% | -1.11% | -67.59% | |
58 Neutral | $38.47B | 6.46 | 3.28% | 7.79% | 6.37% | -32.64% | |
57 Neutral | $41.83B | -42.80 | -1.40% | 4.25% | 0.81% | -128.78% | |
54 Neutral | $48.93B | -6.51 | -18.90% | 4.96% | 1.47% | -315.47% |
* Consumer Cyclical Sector Average
VWAGY
Volkswagen AG
7.65
-3.00
-28.21%
F
Ford Motor
12.10
>-0.01
-0.04%
GM
General Motors
78.27
18.65
31.29%
HMC
Honda Motor Company
31.35
-0.02
-0.06%
TSLA
Tesla
370.59
-59.24
-13.78%
TM
Toyota Motor
181.49
-13.10
-6.73%
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.