BIT:VOW3

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

VOW3

4.8%

IT Auto

3.6%

IT Market


1 Year Return

-0.6%

VOW3

-13.5%

IT Auto

-1.9%

IT Market

Return vs Industry: VOW3 exceeded the Italian Auto industry which returned -13.5% over the past year.

Return vs Market: VOW3 exceeded the Italian Market which returned -1.9% over the past year.


Shareholder returns

VOW3IndustryMarket
7 Day4.5%4.8%3.6%
30 Day-1.5%8.7%2.0%
90 Day14.8%35.1%17.5%
1 Year-0.6%-0.6%-13.3%-13.5%0.7%-1.9%
3 Year15.0%8.7%4.8%-9.2%-3.4%-12.3%
5 Yearn/a-1.0%-15.9%-0.7%-31.9%

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?

13.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOW3 (€138.94) is trading above our estimate of fair value (€108.13)

Significantly Below Fair Value: VOW3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VOW3 is good value based on its PE Ratio (13.2x) compared to the XE Auto industry average (15x).

PE vs Market: VOW3 is good value based on its PE Ratio (13.2x) compared to the Italian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: VOW3 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: VOW3 is good value based on its PB Ratio (0.6x) compared to the IT Auto industry average (2.1x).


Next Steps

Future Growth

How is Volkswagen forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

43.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOW3's forecast earnings growth (43.6% per year) is above the savings rate (2%).

Earnings vs Market: VOW3's earnings (43.6% per year) are forecast to grow faster than the Italian market (25.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VOW3's revenue (6.9% per year) is forecast to grow faster than the Italian market (5.4% per year).

High Growth Revenue: VOW3's revenue (6.9% 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%).


Next Steps

Past Performance

How has Volkswagen performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOW3 has a large one-off loss of €2.6B impacting its June 30 2020 financial results.

Growing Profit Margin: VOW3's current net profit margins (2.4%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: VOW3's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: VOW3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VOW3 had negative earnings growth (-57%) over the past year, making it difficult to compare to the Auto industry average (-36.3%).


Return on Equity

High ROE: VOW3's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Volkswagen's financial position?


Financial Position Analysis

Short Term Liabilities: VOW3's short term assets (€204.9B) exceed its short term liabilities (€183.7B).

Long Term Liabilities: VOW3's short term assets (€204.9B) exceed its long term liabilities (€192.3B).


Debt to Equity History and Analysis

Debt Level: VOW3's debt to equity ratio (174.3%) is considered high.

Reducing Debt: VOW3's debt to equity ratio has increased from 145% to 174.3% over the past 5 years.

Debt Coverage: VOW3's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: VOW3's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.73%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VOW3's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Italian market (1.8%).

High Dividend: VOW3's dividend (4.73%) is low compared to the top 25% of dividend payers in the Italian market (4.89%).


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 reasonable payout ratio (62.4%), VOW3's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOW3's dividends in 3 years are forecast to be well covered by earnings (31.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Herbert Diess (62 yo)

2.33yrs

Tenure

€9,961,793

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 ($USD11.78M) is above average for companies of similar size in the Italian market ($USD4.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Herbert Diess
Chairman of Management Board2.33yrs€9.96mno data
Frank Witter
CFO, Head of IT & Member of Board of Management4.83yrs€5.22mno data
Hiltrud Werner
Head of Integrity & Legal Affairs and Member of the Board of Management3.5yrs€5.35mno data
Oliver Blume
Member of the Board of Management2.33yrs€5.30mno data
Gunnar Kilian
Member of Management Board & Head of Human Resources2.33yrs€5.27mno data
Markus Duesmann
Member of Board of Management0.33yrno datano data
Oliver Larkin
Head of Investor Relations4.58yrsno datano data
Kurt Michels
Chief Compliance Officer3.33yrsno datano data
Marc Langendorf
Head of Corporate Communicationsno datano datano data
Christian Dahlheim
Head of Group Sales1.83yrsno datano data
Manfred Mazen
Head of Production - Mexicono datano datano data
Rudolf Krebs
Group Chief Officer for Electric Traction13.25yrsno datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: VOW3's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hans-Peter Fischer
Member of Supervisory Board7.58yrs€107.00kno data
Hans Pötsch
Chairman of Supervisory Board4.83yrs€925.50kno data
Wolfgang Porsche
Member of Supervisory Board12.33yrs€433.50kno data
Hans Piëch
Member of Supervisory Board11yrs€289.00kno data
Peter Mosch
Member of Supervisory Board14.58yrs€390.50kno data
Ferdinand Porsche
Member of Supervisory Board11yrs€435.00kno data
Bernd Osterloh
Member of Supervisory Board15.58yrs€387.00kno data
Hussain Al-Abdulla
Independent Member of Supervisory Board10.33yrs€105.00kno data
Jörg Hofmann
Member of Supervisory Board4.75yrs€289.00kno data
Bernhard Maier
Chairman of Koda4.75yrsno datano data
Stephan Weil
Independent Member of Supervisory Board7.5yrs€163.00kno data
Louise Kiesling
Independent Member of Supervisory Board5.33yrs€107.00kno data

9.0yrs

Average Tenure

63yo

Average Age

Experienced Board: VOW3's board of directors are considered experienced (9 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: BIT
  • Founded: 1937
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: €73.079b
  • 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
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
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
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
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)UNSPON ADS EACH REP 0.1 PREF SHSUSUSDNov 1992
VOWBDB (Deutsche Boerse AG)UNSPON ADS EACH REP 0.1 PREF 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 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 Analysis2020/08/14 10:17
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.