Volkswagen’s Financial Performance and Stock Analysis. Volkswagen (VW) is a German multinational automotive company that designs, manufactures, and sells vehicles globally. Founded in 1937, the company is now one of the largest automakers in the world, producing popular car brands such as Volkswagen, Audi, Porsche, and more.
In this comprehensive guide, we will take a deep dive into Volkswagen’s financial performance and stock analysis, exploring the company’s key financial metrics and stock market trends.
Volkswagen’s Financial Performance
Revenue and Profitability
Volkswagen’s revenue has shown steady growth in the past five years, from €217.3 billion in 2016 to €252.6 billion in 2020. However, the company’s net income has been more volatile, with a high of €13.3 billion in 2017 and a low of €4.4 billion in 2019. This volatility can be attributed to the company’s ongoing legal issues and restructuring efforts.
Debt and Liquidity
As of the end of 2020, Volkswagen’s total debt was €184.7 billion, a significant increase from €143.9 billion in 2016. The company’s debt-to-equity ratio has also been steadily increasing, reaching 2.08 in 2020. However, Volkswagen has maintained healthy liquidity levels, with a current ratio of 1.19 and a quick ratio of 0.86.
Operating Efficiency
Volkswagen’s operating efficiency has improved in recent years, with a return on equity (ROE) of 8.74% in 2020, up from 5.54% in 2016. The company’s gross margin has also improved, from 11.72% in 2016 to 14.55% in 2020.
Volkswagen’s Stock Analysis
Stock Performance
Volkswagen’s stock (VOW3) has shown significant growth in the past year, increasing by more than 40% from February 2022 to February 2023. This growth can be attributed to the company’s successful electrification efforts and positive market sentiment towards the automotive industry.
Valuation
As of February 2023, Volkswagen’s price-to-earnings (P/E) ratio is 5.65, lower than the industry average of 16.15. This suggests that the company’s stock is currently undervalued by the market. Additionally, Volkswagen’s price-to-sales (P/S) ratio of 0.47 is also lower than the industry average of 0.72, further supporting the undervaluation hypothesis.
Dividends
Volkswagen paid a dividend of €4.86 per share in 2021, a 9.3% increase from the previous year. The company’s dividend yield is currently 5.61%, higher than the industry average of 2.57%.
Analyst Recommendations
According to data from MarketWatch, the consensus rating for Volkswagen’s stock is a “buy,” with a target price of €443.08. Of the 18 analysts covering the stock, 14 have given it a “buy” rating, while 3 have given it a “hold” rating, and 1 has given it a “sell” rating.
FAQs
What is Volkswagen’s current market capitalization?
As of February 2023, Volkswagen’s market capitalization is €147.05 billion.
What is Volkswagen’s main revenue source?
Volkswagen’s main revenue source is the sale of its vehicles, primarily through its Volkswagen, Audi, Porsche, and Skoda brands.
What is Volkswagen’s plan for electrification?
Volkswagen has committed to becoming a leader in electrification
