ENXTBR:VWA

Stock Analysis Report

Executive Summary

Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Volkswagen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VWA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

VWA

-1.9%

BE Auto

-1.8%

BE Market


1 Year Return

10.9%

VWA

-5.7%

BE Auto

8.1%

BE Market

Return vs Industry: VWA exceeded the Belgian Auto industry which returned -5.7% over the past year.

Return vs Market: VWA exceeded the Belgian Market which returned 8.1% over the past year.


Shareholder returns

VWAIndustryMarket
7 Day-3.6%-1.9%-1.8%
30 Day-5.0%-5.4%-1.2%
90 Day-5.3%-9.7%0.03%
1 Year14.5%10.9%-1.0%-5.7%10.3%8.1%
3 Yearn/a1.9%-8.7%-4.7%-11.0%
5 Yearn/a-17.0%-30.2%-3.4%-14.7%

Price Volatility Vs. Market

How volatile is Volkswagen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Volkswagen undervalued compared to its fair value and its price relative to the market?

49.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VWA (€167.95) is trading below our estimate of fair value (€332.71)

Significantly Below Fair Value: VWA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VWA is good value based on its PE Ratio (6.2x) compared to the Auto industry average (9.8x).

PE vs Market: VWA is good value based on its PE Ratio (6.2x) compared to the Belgian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: VWA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: VWA is good value based on its PB Ratio (0.7x) compared to the XE Auto industry average (0.9x).


Next Steps

Future Growth

How is Volkswagen forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VWA's forecast earnings growth (4.4% per year) is above the savings rate (0.7%).

Earnings vs Market: VWA's earnings (4.4% per year) are forecast to grow slower than the Belgian market (7.9% per year).

High Growth Earnings: VWA's earnings are forecast to grow, but not significantly.

Revenue vs Market: VWA's revenue (2.7% per year) is forecast to grow slower than the Belgian market (2.8% per year).

High Growth Revenue: VWA's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VWA's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Volkswagen performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VWA has a large one-off loss of €4.9B impacting its September 30 2019 financial results.

Growing Profit Margin: VWA's current net profit margins (5.4%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: VWA's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: VWA's earnings growth over the past year (3.2%) is below its 5-year average (16.1% per year).

Earnings vs Industry: VWA earnings growth over the past year (3.2%) exceeded the Auto industry 2.3%.


Return on Equity

High ROE: VWA's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Volkswagen's financial position?


Financial Position Analysis

Short Term Liabilities: VWA's short term assets (€195.9B) exceed its short term liabilities (€166.0B).

Long Term Liabilities: VWA's short term assets (€195.9B) do not cover its long term liabilities (€204.2B).


Debt to Equity History and Analysis

Debt Level: VWA's debt to equity ratio (169.4%) is considered high.

Reducing Debt: VWA's debt to equity ratio has increased from 143.8% to 169.4% over the past 5 years.

Debt Coverage: VWA's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: VWA's interest payments on its debt are well covered by EBIT (31.5x coverage).


Balance Sheet

Inventory Level: VWA has a high level of physical assets or inventory.

Debt Coverage by Assets: VWA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Volkswagen's current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VWA's dividend (2.93%) is higher than the bottom 25% of dividend payers in the Belgian market (2.06%).

High Dividend: VWA's dividend (2.93%) is low compared to the top 25% of dividend payers in the Belgian market (4.31%).


Stability and Growth of Payments

Stable Dividend: VWA's dividend payments have been volatile in the past 10 years.

Growing Dividend: VWA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), VWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VWA's dividends in 3 years are forecast to be well covered by earnings (29.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Herbert Diess (61yo)

1.8yrs

Tenure

€8,238,020

Compensation

Dr. Herbert Diess has been Chairman of the Supervisory Board at Audi AG, Ingolstadt, Deutschland since May 7, 2018 and has been its Member of Supervisory Board since May 7, 2018. Dr. Diess has been the Cha ...


CEO Compensation Analysis

Compensation vs Market: Herbert's total compensation ($USD8.95M) is above average for companies of similar size in the Belgian market ($USD2.50M).

Compensation vs Earnings: Herbert's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Herbert Diess
Chairman of Management Board1.8yrs€8.24mno data
Frank Witter
CFO, Head of IT & Member of Board of Management4.3yrs€5.41mno data
Andreas Hermann Renschler
Head of Truck & Bus and Member of the Board of Management5yrs€10.00mno data
Hiltrud Werner
Head of Integrity & Legal Affairs and Member of the Board of Management3yrs€5.63mno data
Oliver Blume
Member of the Board of Management1.8yrs€4.30mno data
Gunnar Kilian
Member of Management Board & Head of Human Resources1.8yrs€4.43mno data
Stefan Sommer
Member of the Management Board and Head of Components & Procurement1.4yrs€2.69mno data
Abraham Schot
Member of the Board of Management1.1yrsno datano data
Oliver Larkin
Head of Investor Relations4.1yrsno datano data
Kurt Michels
Chief Compliance Officer2.8yrsno datano data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: VWA's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hans-Peter Fischer
Member of Supervisory Board7.1yrs€114.00kno data
Hans Pötsch
Chairman of Supervisory Board4.3yrs€584.50kno data
Wolfgang Porsche
Member of Supervisory Board11.8yrs€422.50kno data
Hans Piëch
Member of Supervisory Board10.5yrs€272.00kno data
Peter Mosch
Member of Supervisory Board14.1yrs€346.59kno data
Ferdinand Porsche
Member of Supervisory Board10.5yrs€412.50kno data
Bernd Osterloh
Member of Supervisory Board15.1yrs€264.23kno data
Hussain Al-Abdulla
Member of Supervisory Board9.8yrs€108.00kno data
Jörg Hofmann
Deputy Chairman of Supervisory Board4.3yrs€294.00kno data
Bernhard Maier
Chairman of Koda4.3yrsno datano data

10.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VWA's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Volkswagen AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Volkswagen AG
  • Ticker: VWA
  • Exchange: ENXTBR
  • Founded: 1937
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: €83.854b
  • Shares outstanding: 501.30m
  • Website: https://www.volkswagenag.com

Number of Employees


Location

  • Volkswagen AG
  • Berliner Ring 2
  • Wolfsburg
  • Lower Saxony
  • 38440
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLKA.FOTCPK (Pink Sheets LLC)Common StockUSUSDJan 1975
0P6NLSE (London Stock Exchange)Common StockGBEURJan 1975
VWSWX (SIX Swiss Exchange)Common StockCHCHFJan 1975
VWORDBDL (Bourse de Luxembourg)Common StockLUEURJan 1975
VWAENXTBR (Euronext Brussels)Common StockBEEURJan 1975
VOWDB (Deutsche Boerse AG)Common StockDEEURJan 1975
VOWXTRA (XETRA Trading Platform)Common StockDEEURJan 1975
VOWDBATS-CHIXE (BATS 'Chi-X Europe')Common StockGBEURJan 1975
VOWG-UETLX (Eurotlx)Common StockITEURJan 1975
VWZBATS-CHIXE (BATS 'Chi-X Europe')Common StockGBCHFJan 1975
VWAG.YOTCPK (Pink Sheets LLC)UNSPONSRED ADRUSUSDDec 1990
VOWADB (Deutsche Boerse AG)UNSPONSRED ADRDEEURDec 1990
0P6OLSE (London Stock Exchange)YesPreferred StockGBEURJan 1992
VW-VSWX (SIX Swiss Exchange)YesPreferred StockCHCHFJan 1992
VOW3DB (Deutsche Boerse AG)YesPreferred StockDEEURJan 1992
VWPRVBDL (Bourse de Luxembourg)YesPreferred StockLUEURJan 1992
VWAPENXTBR (Euronext Brussels)YesPreferred StockBEEURJan 1992
VLKP.FOTCPK (Pink Sheets LLC)YesPreferred StockUSUSDJan 1992
VOW3XTRA (XETRA Trading Platform)YesPreferred StockDEEURJan 1992
VOW3DBATS-CHIXE (BATS 'Chi-X Europe')YesPreferred StockGBEURJan 1992
VWVZBATS-CHIXE (BATS 'Chi-X Europe')YesPreferred StockGBCHFJan 1992
VOW3 NBMV (Bolsa Mexicana de Valores)YesPreferred StockMXMXNJan 1992
VOW3BIT (Borsa Italiana)YesPreferred StockITEURJan 1992
VOWWBAG (Wiener Boerse AG)YesPreferred StockATEURJan 1992
VOWSEP (The Stock Exchange Prague Co. Ltd.)YesPreferred StockCZCZKJan 1992
VOLKSWAGENBUSE (Budapest Stock Exchange)YesPreferred StockHUHUFJan 1992
VWAP.YOTCPK (Pink Sheets LLC)ADR RP PFD SHSUSUSDNov 1992
VOWBDB (Deutsche Boerse AG)ADR RP PFD SHSDEEURNov 1992

Biography

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, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars segment develops vehicles and engines; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells light commercial vehicles, trucks, and buses; and offers parts and related services. The Power Engineering segment develops, produces, and sells large-bore diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well as gear units, propulsion components, and testing systems. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles and turbomachinery. It provides its products under the Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, Bugatti, MOIA, and TRATON brands. Volkswagen AG was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 20:52
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.