Skip to Content

Volkswagen AG ADR VWAGY

Morningstar Rating
$15.38 +0.28 (1.82%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Volkswagen Stock Undervalued as Transition to Electric Vehicles Progresses

In our view, Volkswagen is successfully executing a global automotive strategy and has one of the most aggressive plans to switch to battery electric vehicles from internal combustion powertrains. A broad array of brands, serving multiple segments, reduces reliance on any one vehicle category. As one of the world's leading volume producers, Volkswagen's economies of scale from common platforms across a number of models enable cost savings unattainable by smaller competitors.

Price vs Fair Value

VWAGY is trading at a 58% discount.
Price
$15.38
Fair Value
$37.00
Uncertainty
High
1-Star Price
$76.51
5-Star Price
$36.50
Economic Moat
Jxgd
Capital Allocation
Rysjfmxt

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if VWAGY is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$15.10
Day Range
$15.3115.43
52-Week Range
$11.1619.21
Bid/Ask
$15.36 / $15.41
Market Cap
$77.07 Bil
Volume/Avg
203,372 / 328,092

Key Statistics

Price/Earnings (Normalized)
3.97
Price/Sales
0.23
Dividend Yield (Trailing)
6.14%
Dividend Yield (Forward)
6.14%
Total Yield
6.87%

Company Profile

Volkswagen is one of the world's largest automotive manufacturers. Automotive brands include Volkswagen passenger cars, 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
680,288

Competitors

Valuation

Metric
VWAGY
MBGAF
F
Price/Earnings (Normalized)
3.975.376.27
Price/Book Value
0.460.891.19
Price/Sales
0.230.520.29
Price/Cash Flow
1.543.743.74
Price/Earnings
VWAGY
MBGAF
F

Financial Strength

Metric
VWAGY
MBGAF
F
Quick Ratio
0.920.831.01
Current Ratio
1.221.241.20
Interest Coverage
62.152.82
Quick Ratio
VWAGY
MBGAF
F

Profitability

Metric
VWAGY
MBGAF
F
Return on Assets (Normalized)
2.71%5.98%3.08%
Return on Equity (Normalized)
10.02%17.96%18.80%
Return on Invested Capital (Normalized)
3.82%8.72%4.23%
Return on Assets
VWAGY
MBGAF
F
See how this stock stacks up to its competitors with Morningstar Investor

Auto Manufacturers Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TSLA
Tesla IncXvzwkb$599.2 Bil
TM
Toyota Motor Corp ADRZcrp$328.9 Bil
MBGAF
Mercedes-Benz Group AGDzrwch$85.5 Bil
STLA
Stellantis NVHwdx$80.1 Bil
BMWYY
Bayerische Motoren Werke AG ADRJhdxlfr$78.5 Bil
RACE
Ferrari NVYrzb$74.4 Bil
VWAPY
Volkswagen AG ADRQvgh$72.7 Bil
HMC
Honda Motor Co Ltd ADRNhysq$58.2 Bil
F
Ford Motor CoZhzf$50.6 Bil

Sponsor Center