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Volkswagen AG VOW

Morningstar Rating
€137.70 −1.00 (0.72%)
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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 183% premium.
Price
€138.70
Fair Value
€996.00
Uncertainty
High
1-Star Price
€313.32
5-Star Price
€111.00
Economic Moat
Yhbk
Capital Allocation
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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
€138.70
Day Range
€136.40138.70
52-Week Range
€105.95162.65
Bid/Ask
€137.60 / €0.00
Market Cap
€69.03 Bil
Volume/Avg
52,156 / 43,959

Key Statistics

Price/Earnings (Normalized)
4.20
Price/Sales
0.22
Dividend Yield (Trailing)
6.27%
Dividend Yield (Forward)
6.49%
Total Yield
6.27%

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
HMC
NSANY
Price/Earnings (Normalized)
4.207.863.77
Price/Book Value
0.420.640.34
Price/Sales
0.220.390.15
Price/Cash Flow
1.504.191.79
Price/Earnings
VOW
HMC
NSANY

Financial Strength

Metric
VOW
HMC
NSANY
Quick Ratio
0.891.071.36
Current Ratio
1.161.451.75
Interest Coverage
29.4327.537.91
Quick Ratio
VOW
HMC
NSANY

Profitability

Metric
VOW
HMC
NSANY
Return on Assets (Normalized)
2.83%3.87%2.64%
Return on Equity (Normalized)
10.57%8.59%8.81%
Return on Invested Capital (Normalized)
4.62%4.54%3.75%
Return on Assets
VOW
HMC
NSANY
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BMWYY
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