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Volkswagen AG ADR VWAPY

Morningstar Rating
$13.04 +0.10 (0.77%)
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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

VWAPY is trading at a 65% discount.
Price
$13.04
Fair Value
$51.00
Uncertainty
High
1-Star Price
$33.72
5-Star Price
$96.10
Economic Moat
Jzty
Capital Allocation
Bfggtvth

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
$12.94
Day Range
$13.0213.11
52-Week Range
$10.3714.94
Bid/Ask
$13.00 / $13.07
Market Cap
$65.37 Bil
Volume/Avg
165,733 / 185,148

Key Statistics

Price/Earnings (Normalized)
3.37
Price/Sales
0.20
Dividend Yield (Trailing)
7.29%
Dividend Yield (Forward)
7.29%
Total Yield
8.02%

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
VWAPY
MBGAF
F
Price/Earnings (Normalized)
3.375.376.27
Price/Book Value
0.390.891.19
Price/Sales
0.200.520.29
Price/Cash Flow
1.313.743.74
Price/Earnings
VWAPY
MBGAF
F

Financial Strength

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

Profitability

Metric
VWAPY
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
VWAPY
MBGAF
F
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Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TSLA
Tesla IncRzwhg$599.2 Bil
TM
Toyota Motor Corp ADRTrfj$328.9 Bil
MBGAF
Mercedes-Benz Group AGKgqzkv$85.5 Bil
STLA
Stellantis NVPftz$80.1 Bil
BMWYY
Bayerische Motoren Werke AG ADRGbyzk$78.5 Bil
RACE
Ferrari NVNjdq$74.4 Bil
VWAGY
Volkswagen AG ADRYlyf$72.7 Bil
HMC
Honda Motor Co Ltd ADRYlrxg$58.2 Bil
F
Ford Motor CoDryk$50.6 Bil

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