XTRA:VOW3

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

€135.0b

Last Updated

2021/06/14 21:22 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Good value 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: VOW3 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VOW3's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

VOW3

-1.8%

DE Auto

0.4%

DE Market


1 Year Return

68.7%

VOW3

80.1%

DE Auto

30.8%

DE Market

Return vs Industry: VOW3 underperformed the German Auto industry which returned 80.1% over the past year.

Return vs Market: VOW3 exceeded the German Market which returned 30.8% over the past year.


Shareholder returns

VOW3IndustryMarket
7 Day-3.6%-1.8%0.4%
30 Day9.1%9.6%4.0%
90 Day10.7%11.2%7.0%
1 Year74.9%68.7%86.6%80.1%35.6%30.8%
3 Year58.0%47.4%48.8%35.3%28.2%17.6%
5 Year105.4%84.4%85.8%57.3%61.0%38.8%

Long-Term 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?

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VOW3 (€230.1) is trading below our estimate of fair value (€264.01)

Significantly Below Fair Value: VOW3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VOW3's PE Ratio (10.3x) is in line with the German Auto industry average.

PE vs Market: VOW3 is good value based on its PE Ratio (10.3x) compared to the German market (26.4x).


Price to Earnings Growth Ratio

PEG Ratio: VOW3 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: VOW3 is good value based on its PB Ratio (0.9x) compared to the DE Auto industry average (1.1x).


Future Growth

How is Volkswagen forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOW3's forecast earnings growth (10.5% per year) is above the savings rate (0.01%).

Earnings vs Market: VOW3's earnings (10.5% per year) are forecast to grow slower than the German market (14.6% per year).

High Growth Earnings: VOW3's earnings are forecast to grow, but not significantly.

Revenue vs Market: VOW3's revenue (3.1% per year) is forecast to grow slower than the German market (5.5% per year).

High Growth Revenue: VOW3's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOW3's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

How has Volkswagen performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOW3 has high quality earnings.

Growing Profit Margin: VOW3's current net profit margins (4.9%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: VOW3 has become profitable over the past 5 years, growing earnings by 21.6% per year.

Accelerating Growth: VOW3's earnings growth over the past year (3.1%) is below its 5-year average (21.6% per year).

Earnings vs Industry: VOW3 earnings growth over the past year (3.1%) underperformed the Auto industry 6.3%.


Return on Equity

High ROE: VOW3's Return on Equity (8.7%) is considered low.


Financial Health

How is Volkswagen's financial position?


Financial Position Analysis

Short Term Liabilities: VOW3's short term assets (€203.5B) exceed its short term liabilities (€169.8B).

Long Term Liabilities: VOW3's short term assets (€203.5B) do not cover its long term liabilities (€207.0B).


Debt to Equity History and Analysis

Debt Level: VOW3's debt to equity ratio (152.9%) is considered high.

Reducing Debt: VOW3's debt to equity ratio has reduced from 172.5% to 152.9% over the past 5 years.

Debt Coverage: VOW3's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: VOW3's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Dividend

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

2.11%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 15 2021Ex Dividend DateJul 23 2021Dividend Pay DateJul 27 20214 days from Ex DividendBuy in the next 38 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VOW3's dividend (2.11%) is higher than the bottom 25% of dividend payers in the German market (0.99%).

High Dividend: VOW3's dividend (2.11%) is low compared to the top 25% of dividend payers in the German market (3.16%).


Stability and Growth of Payments

Stable Dividend: VOW3's dividend payments have been volatile in the past 10 years.

Growing Dividend: VOW3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.8%), VOW3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOW3's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Herbert Diess (62 yo)

3.17yrs

Tenure

€10,520,615

Compensation

Dr. Ing. Herbert Diess served as Chairman of the Board at SEAT, S.A. until June 04, 2021. Dr. Diess has been Chairman of the Supervisory Board at Audi AG, Ingolstadt, Deutschland since May 7, 2018 and has ...


CEO Compensation Analysis

Compensation vs Market: Herbert's total compensation ($USD12.76M) is above average for companies of similar size in the German market ($USD4.91M).

Compensation vs Earnings: Herbert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VOW3's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: VOW3's board of directors are considered experienced (8.4 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: VOW3
  • Exchange: XTRA
  • Founded: 1937
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: €135.031b
  • Shares outstanding: 501.30m
  • Website: https://www.volkswagenag.com

Number of Employees


Location

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

Listings


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 and Light Commercial Vehicles...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 21:22
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.