BUSE:VOLKSWAGEN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

4.8%

VOLKSWAGEN

2.7%

HU Auto

0.7%

HU Market


1 Year Return

18.4%

VOLKSWAGEN

2.0%

HU Auto

10.4%

HU Market

Return vs Industry: VOLKSWAGEN exceeded the Hungarian Auto industry which returned 2% over the past year.

Return vs Market: VOLKSWAGEN exceeded the Hungarian Market which returned 10.4% over the past year.


Shareholder returns

VOLKSWAGENIndustryMarket
7 Day4.8%2.7%0.7%
30 Day7.5%2.0%-0.04%
90 Dayn/a5.2%-1.5%
1 Year22.1%18.4%7.1%2.0%13.5%10.4%
3 Yearn/a21.5%8.9%50.9%38.5%
5 Yearn/a22.4%3.8%159.6%127.1%

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?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VOLKSWAGEN (HUF55340) is trading below our estimate of fair value (HUF60253.05)

Significantly Undervalued: VOLKSWAGEN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VOLKSWAGEN is good value based on its PE Ratio (6.9x) compared to the Auto industry average (8.7x).

PE vs Market: VOLKSWAGEN is good value based on its PE Ratio (6.9x) compared to the Hungarian market (14.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VOLKSWAGEN is good value based on its PB Ratio (0.7x) compared to the XE Auto industry average (1.2x).


Next Steps

Future Growth

How is Volkswagen forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLKSWAGEN's forecast earnings growth (7.1% per year) is above the savings rate (3%).

Earnings vs Market: VOLKSWAGEN's earnings (7.1% per year) are forecast to grow faster than the Hungarian market (6.5% per year).

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

Revenue vs Market: VOLKSWAGEN's revenue (2.7% per year) is forecast to grow slower than the Hungarian market (4.8% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VOLKSWAGEN's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Volkswagen performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VOLKSWAGEN's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: VOLKSWAGEN's earnings growth over the past year (8.6%) is below its 5-year average (11.5% per year).

Earnings vs Industry: VOLKSWAGEN earnings growth over the past year (8.6%) underperformed the Auto industry 17.2%.


Return on Equity

High ROE: VOLKSWAGEN's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: VOLKSWAGEN's Return on Assets is below or equal to the Auto industry average last year.


Return on Capital Employed

ROCE Improving: VOLKSWAGEN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Volkswagen's financial position?


Financial Position Analysis

Short Term Liabilities: VOLKSWAGEN's short term assets (€191.6B) exceeds its short term liabilities (€166.9B)

Long Term Liabilities: VOLKSWAGEN's short term assets (191.6B) do not cover its long term liabilities (194.4B)


Debt to Equity History and Analysis

Debt Level: VOLKSWAGEN's debt to equity ratio (167.8%) is considered high

Reducing Debt: VOLKSWAGEN's debt to equity ratio has increased from 140.8% to 167.8% over the past 5 years.

Debt Coverage: VOLKSWAGEN's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: VOLKSWAGEN's interest payments on its debt are well covered by EBIT (144.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: VOLKSWAGEN'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?

2.87%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.2%markettop25%5.6%industryaverage4.5%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VOLKSWAGEN's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Hungarian market (2.15%).

High Dividend: VOLKSWAGEN's dividend (2.87%) is low compared to the top 25% of dividend payers in the Hungarian market (5.62%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), VOLKSWAGEN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOLKSWAGEN's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

What is the CEO of Volkswagen's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Herbert Diess (61yo)

1.5yrs

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: Insufficient data to establish whether Herbert's total compensation is reasonable compared to companies of similar size in the Hungarian market.

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


Management Age and Tenure

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: VOLKSWAGEN's management team is considered experienced (2 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VOLKSWAGEN's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Frank Witter (60yo)

    CFO, Head of IT & Member of Board of Management

    • Tenure: 4yrs
    • Compensation: €5.41m
  • Andreas Hermann Renschler (61yo)

    Head of Truck & Bus and Member of the Board of Management

    • Tenure: 4.7yrs
    • Compensation: €10.00m
  • Herbert Diess (61yo)

    Chairman of Management Board

    • Tenure: 1.5yrs
    • Compensation: €8.24m
  • Stefan Sommer (56yo)

    Member of the Management Board and Head of Components & Procurement

    • Tenure: 1.1yrs
    • Compensation: €2.69m
  • Hiltrud Werner (53yo)

    Head of Integrity & Legal Affairs and Member of the Board of Management

    • Tenure: 2.7yrs
    • Compensation: €5.63m
  • Oliver Blume (51yo)

    Member of the Board of Management

    • Tenure: 1.5yrs
    • Compensation: €4.30m
  • Oliver Larkin (54yo)

    Head of Investor Relations

    • Tenure: 3.8yrs
  • Kurt Michels

    Chief Compliance Officer

    • Tenure: 2.5yrs
  • Bram Schot (58yo)

    Member of the Board of Management

    • Tenure: 0.8yrs
  • Gunnar Kilian (44yo)

    Member of Management Board & Head of Human Resources

    • Tenure: 1.5yrs
    • Compensation: €4.43m

Board Members

  • Hans-Peter Fischer (59yo)

    Member of Supervisory Board

    • Tenure: 6.8yrs
    • Compensation: €114.00k
  • Hans Pötsch (68yo)

    Chairman of Supervisory Board

    • Tenure: 4yrs
    • Compensation: €584.50k
  • Wolfgang Porsche (76yo)

    Member of Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €422.50k
  • Hans Piëch (77yo)

    Member of Supervisory Board

    • Tenure: 10.2yrs
    • Compensation: €272.00k
  • Peter Mosch (47yo)

    Member of Supervisory Board

    • Tenure: 13.8yrs
    • Compensation: €346.59k
  • Ferdinand Porsche (58yo)

    Member of Supervisory Board

    • Tenure: 10.2yrs
    • Compensation: €412.50k
  • Bernd Osterloh (63yo)

    Member of Supervisory Board

    • Tenure: 14.8yrs
    • Compensation: €264.23k
  • Hussain Al-Abdulla (62yo)

    Member of Supervisory Board

    • Tenure: 9.5yrs
    • Compensation: €108.00k
  • Jörg Hofmann (63yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 3.9yrs
    • Compensation: €294.00k
  • Bernhard Maier (60yo)

    Chairman of Koda

    • Tenure: 3.9yrs

Company Information

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


Key Information

  • Name: Volkswagen AG
  • Ticker: VOLKSWAGEN
  • Exchange: BUSE
  • Founded: 1937
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: €84.450b
  • Listing Market Cap: €27.938t
  • 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
VWAENXTBR (Euronext Brussels)Common StockBEEURJan 1975
VWZBATS-CHIXE (BATS 'Chi-X Europe')Common StockGBCHFJan 1975
0P6NLSE (London Stock Exchange)Common StockGBEURJan 1975
VWSWX (SIX Swiss Exchange)Common StockCHCHFJan 1975
VWORDBDL (Bourse de Luxembourg)Common StockLUEURJan 1975
VLKA.FOTCPK (Pink Sheets LLC)Common StockUSUSDJan 1975
VOWDB (Deutsche Boerse AG)Common StockDEEURJan 1975
VOWXTRA (XETRA Trading Platform)Common StockDEEURJan 1975
VOWDBATS-CHIXE (BATS 'Chi-X Europe')Common StockGBEURJan 1975
VOWADB (Deutsche Boerse AG)UNSPONSRED ADRDEEURDec 1990
VWAG.YOTCPK (Pink Sheets LLC)UNSPONSRED ADRUSUSDDec 1990
VWPRVBDL (Bourse de Luxembourg)YesPreferred StockLUEURJan 1992
VWAPENXTBR (Euronext Brussels)YesPreferred StockBEEURJan 1992
VOWSEP (The Stock Exchange Prague Co. Ltd.)YesPreferred StockCZCZKJan 1992
VOLKSWAGENBUSE (Budapest Stock Exchange)YesPreferred StockHUHUFJan 1992
VOW3XTRA (XETRA Trading Platform)YesPreferred StockDEEURJan 1992
0P6OLSE (London Stock Exchange)YesPreferred StockGBEURJan 1992
VOWWBAG (Wiener Boerse AG)YesPreferred StockATEURJan 1992
VOW3DBATS-CHIXE (BATS 'Chi-X Europe')YesPreferred StockGBEURJan 1992
VW-VSWX (SIX Swiss Exchange)YesPreferred StockCHCHFJan 1992
VOW3DB (Deutsche Boerse AG)YesPreferred StockDEEURJan 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
VLKP.FOTCPK (Pink Sheets LLC)YesPreferred StockUSUSDJan 1992
VOWBDB (Deutsche Boerse AG)ADR RP PFD SHSDEEURNov 1992
VWAP.YOTCPK (Pink Sheets LLC)ADR RP PFD SHSUSUSDNov 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 E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:43
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.