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Volkswagen AG (VWAGY)
OTHER OTC:VWAGY
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Volkswagen AG
(OTC:VWAGY)
75Outperform
Volkswagen AG (VWAGY) vs. S&P 500 (SPY)
Market Cap
$50.36B
Dividend Yield6.36%
Average Volume (3M)18.31K
Price to Earnings (P/E)4.4
Beta (1Y)0.69
Revenue Growth0.75%
EPS Growth-33.14%
CountryUS
Employees679,472
SectorConsumer Cyclical
Sector Strength61
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.97
Shares Outstanding2,950,898,200
10 Day Avg. Volume54,921
30 Day Avg. Volume18,307
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Volkswagen AG Business Overview & Revenue Model
Company DescriptionVolkswagen AG, commonly referred to as VW, is a German multinational automotive manufacturing corporation headquartered in Wolfsburg, Germany. It is one of the world's leading automobile manufacturers and the largest carmaker in Europe. Volkswagen AG operates through multiple segments, including Passenger Cars, Commercial Vehicles, Financial Services, and Power Engineering. The company is renowned for its diverse range of vehicles, which include well-known brands such as Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, and Volkswagen Commercial Vehicles.
How the Company Makes MoneyVolkswagen AG generates revenue primarily through the sale of vehicles, parts, and related services across its portfolio of brands. The Passenger Cars segment is the primary source of income, driven by the manufacture and sale of vehicles under its various brands. The Commercial Vehicles segment contributes through the production and sale of trucks and buses. Additionally, the Financial Services segment plays a crucial role, providing leasing, financing, insurance, and fleet management services. Volkswagen AG also benefits from strategic partnerships and joint ventures, enabling it to expand its market presence and technological capabilities. The company invests significantly in research and development, particularly in electric vehicles and digitalization, to maintain its competitive edge and adapt to evolving market demands.
Volkswagen AG Financial Statement Overview
Summary
Volkswagen AG demonstrates strong revenue growth and profitability, with a robust balance sheet reflecting a moderate debt level. However, cash flow challenges due to high capital expenditures affect financial flexibility, necessitating improved cash management strategies.Income Statement
Volkswagen AG has demonstrated consistent revenue growth and maintains strong gross and net profit margins. The gross profit margin stands at 18.31%, and the net profit margin is at 3.50% for the latest year. Despite a decline in EBIT, the company shows a healthy EBITDA margin of 15.90%. Overall, the income statement reflects solid profitability with minor fluctuations in EBIT over recent years.82
Very Positive
Balance Sheet
The balance sheet of Volkswagen AG is robust with a steady increase in stockholders' equity and total assets. The debt-to-equity ratio is 1.08, indicating a moderate level of leverage. The equity ratio is 28.80%, suggesting a stable financial structure. Return on equity is 6.23%, demonstrating reasonable profitability relative to equity.79
Positive
Cash Flow
Volkswagen AG's cash flow analysis shows challenges with free cash flow, which is currently negative. The operating cash flow to net income ratio is 1.51, indicating efficient operations. However, the free cash flow to net income ratio is negative due to significant capital expenditures, suggesting a need for improved cash management strategies.70
Positive
| 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 | 50.91B | 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 | -19.82B | -41.82B | -26.13B | -22.69B | Financing Cash Flow |
| 11.14B | 16.01B | 4.22B | -7.75B | 7.64B |
Volkswagen AG Technical Analysis
Neutral
10.39
Price Trends
10.89
Negative
10.18
Positive
10.60
Negative
Market Momentum
-0.33
Positive
46.76
Neutral
72.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAGY, the sentiment is Neutral. The current price of 10.39 is below the 20-day moving average (MA) of 10.53, below the 50-day MA of 10.89, and below the 200-day MA of 10.60, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VWAGY.
Volkswagen AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $50.36B | 4.41 | 6.58% | 6.36% | 0.75% | -33.14% | |
74 Outperform | $44.39B | 6.54 | 8.11% | 4.29% | 4.37% | 6.93% | |
73 Outperform | $811.69B | 124.67 | 10.52% | ― | 0.95% | -52.81% | |
72 Outperform | $37.10B | 6.38 | 13.42% | 7.72% | 5.00% | 35.92% | |
72 Outperform | $43.41B | 6.85 | 9.44% | 1.06% | 9.08% | -15.25% | |
70 Outperform | $219.94B | 6.82 | 14.59% | 2.83% | -0.59% | 7.56% | |
60 Neutral | $7.23B | 11.55 | 3.67% | 4.04% | 2.96% | -13.54% |
* Consumer Cyclical Sector Average
Performance Comparison
VWAGY
Volkswagen AG
10.39
-4.00
-27.80%
F
Ford Motor Company
9.45
-1.79
-15.93%
GM
General Motors Company
44.54
2.30
5.45%
HMC
Honda Motor Company
28.57
-5.19
-15.37%
TSLA
Tesla Motors
254.11
97.00
61.74%
TM
Toyota Motor
174.24
-62.28
-26.33%
Volkswagen AG Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -14.98% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Volkswagen demonstrated resilience with strong revenue and product launches despite challenging market conditions, particularly in China. Strategic partnerships and a strong order backlog position the company for future growth, although operating margins and profit after tax faced declines. The company is focused on reducing costs and increasing profitability as it navigates the transition to electric vehicles.Highlights
Record Group Revenue and Operating Profit
Volkswagen achieved approximately €325 billion in group revenue and €19.5 billion in operating profits in 2024, despite challenging global conditions.
Strong Product Launches
Volkswagen launched more than 30 new models across its brands including Volkswagen, Skoda, CUPRA, Audi, and Porsche, receiving positive customer and trade press feedback.
North American Market Growth
Volkswagen's activities in North America recorded a strong growth of 6%, with the Volkswagen brand growing by 18%.
Electric Vehicle Sales
Volkswagen delivered 745,000 battery-electric vehicles worldwide in 2024, and expects to increase the BEV share to 10% to 14% globally in 2025.
Significant Strategic Partnerships
Volkswagen formed key partnerships with Xpeng in China and Rivian globally to enhance its software and electronic architectures.
Healthy Order Backlog
Volkswagen ended 2024 with a strong order backlog in Europe, with incoming orders in Western Europe up by 16% year-on-year.
Lowlights
Weak Chinese Market Performance
Deliveries in China fell by 10%, with market share declining by 2 percentage points, and earnings negatively impacted by high expenses and competitive pressures.
Operating Margin Decline
Operating profit fell by 15% to €19.1 billion, with a corresponding operating margin of 5.9%, down from the previous year.
Challenges in BEV Market
Despite growth in electric vehicle sales, Volkswagen faced pressure in the BEV market with a 3% decline in deliveries compared to the previous year.
Restructuring Costs Impact
Volkswagen faced considerable restructuring expenses totaling about €3 billion, affecting overall financial performance.
Decline in Profit After Tax
Profit after tax decreased by 31% to €12.4 billion, attributed to a significant decline in the financial result and lower equity results from Chinese joint ventures.
Expected Challenges in 2025
Volkswagen expects earnings in China to decline again in 2025, with continued restructuring costs and high upfront investments affecting financial performance.
Company Guidance
In the recent Volkswagen AG Investor and Analyst Conference Call, the company provided a comprehensive financial outlook for 2025, highlighting several key metrics and strategic initiatives. Volkswagen achieved a significant milestone in 2024, reporting group revenue of almost €325 billion and operating profits of €19.5 billion, despite challenging market conditions. The company maintained a robust balance sheet, proposing a dividend of €6.36 per preference share, corresponding to a payout of 30% of net profit. For 2025, Volkswagen anticipates a sales revenue increase of up to 5%, with an operating return on sales between 5.5% and 6.5%, and expects automotive net cash flow to range from €2 billion to €5 billion. The company plans to invest €165 billion from 2025 to 2029, a reduction of €15 billion from the previous planning round, aiming for an investment ratio in the automotive division between 12% and 13%. Volkswagen is also focused on expanding its battery electric vehicle share to 10% to 14% globally in 2025, driven by successful product launches, including the ID.7 Tourer and premium models like the Porsche Macan and Audi Q6 e-tron. The company is committed to continuing its product offensive, with around 30 new models set to launch in 2025, while emphasizing cost management and strategic partnerships with companies like Rivian and Xpeng to enhance competitiveness.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.