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Volkswagen AG VOW

Morningstar Rating
€133.20 +1.10 (0.83%)
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Company Report

Volkswagen Earnings: A Slow Start to a Promising Year; Valuation Is Flat

No-moat Volkswagen reported first-quarter earnings that reflected a relatively slow start to the year and tough comparisons to a rebounding first quarter in 2023. Overall unit sales came in 2% lower than last year, at 2.1 million vehicles, though with some 30 new and refreshed models to be launched this year, we don't see any reason yet to alter our full-year forecast. We have raised our fair value estimate for the Europe-listed shares to EUR 355 from EUR 351 to reflect the time value of money, and our fair value estimate for the US-listed depository receipts remains $38 per share as currency effects offset the underlying increase.

Price vs Fair Value

VOW is trading at a 62% discount.
Price
€133.20
Fair Value
€251.00
Uncertainty
High
1-Star Price
€542.63
5-Star Price
€714.00
Economic Moat
Sqkb
Capital Allocation
Jlbltzkc

Bulls Say, Bears Say

Bulls

With substantial liquidity and a conservatively financed capital structure, Volkswagen has a high degree of financial flexibility and is well positioned to weather the lingering effects of covid-19 and the microchip shortage.

Bears

Volkswagen has one of the most aggressive product plans in BEVs, substantially increasing cost, while global light-vehicle demand is at risk from lingering coronavirus effects, the chip crunch, and the Ukraine crisis.

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News

Trading Information

Previous Close Price
€132.10
Day Range
€132.20134.40
52-Week Range
€105.95162.65
Bid/Ask
€0.00 / €133.50
Market Cap
€66.77 Bil
Volume/Avg
25,934 / 41,939

Key Statistics

Price/Earnings (Normalized)
4.04
Price/Sales
0.21
Dividend Yield (Trailing)
6.53%
Dividend Yield (Forward)
6.76%
Total Yield
6.53%

Company Profile

Volkswagen is one of the world's largest automotive manufacturers. Its passenger car brands include Volkswagen, Audi, Bentley, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Navistar, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, vehicle leasing, banking, and other financial services. In 2022, Europe was Volkswagen's largest light vehicle market at 41% of total volume, followed by China at 37%, and rest of world at 22%.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
656,134

Competitors

Valuation

Metric
VOW
MBGAF
TSLA
Price/Earnings (Normalized)
4.045.6966.37
Price/Book Value
0.410.808.98
Price/Sales
0.210.506.67
Price/Cash Flow
1.443.8544.01
Price/Earnings
VOW
MBGAF
TSLA

Financial Strength

Metric
VOW
MBGAF
TSLA
Quick Ratio
0.890.921.13
Current Ratio
1.161.351.73
Interest Coverage
29.4326.8558.10
Quick Ratio
VOW
MBGAF
TSLA

Profitability

Metric
VOW
MBGAF
TSLA
Return on Assets (Normalized)
2.83%5.21%9.74%
Return on Equity (Normalized)
10.57%15.04%16.96%
Return on Invested Capital (Normalized)
4.62%7.71%13.43%
Return on Assets
VOW
MBGAF
TSLA
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
TSLA
Tesla IncSwflnhtddDmmwz$577.9 Bil
TM
Toyota Motor Corp ADRGvcpcgkPqzy$315.2 Bil
MBGAF
Mercedes-Benz Group AGDylrpkvsXtrnhxf$82.2 Bil
RACE
Ferrari NVCcdnyzvjjSdpf$77.1 Bil
BMWYY
Bayerische Motoren Werke AG ADRThdjcpcczFmldnbv$69.9 Bil
VWAPY
Volkswagen AG ADRPxlwxbbmHzxxl$67.9 Bil
VWAGY
Volkswagen AG ADRDdkcmlnvPvk$67.2 Bil
STLA
Stellantis NVZfdykmjJqp$65.0 Bil
HMC
Honda Motor Co Ltd ADRHtgsllkhWzm$56.2 Bil
GM
General Motors CoCzvnzgjssBchz$51.2 Bil

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