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Volkswagen AG logo

Volkswagen AG

VLKPF
36
Auto - Manufacturers · Consumer Cyclical
Price
$81.00
-4.90 (-5.70%)
Market Cap
$40.60B
Exchange
Other OTC
Winston Score
36
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Jul 28, 2026 · filings through Jun 30, 2026

Volkswagen AG is one of the largest automakers in the world, selling cars, trucks, and SUVs under more than a dozen brands. Those brands include Volkswagen, Audi, Porsche, SEAT, Škoda, Lamborghini, and Bentley, covering everything from affordable family cars to luxury sports vehicles. The company sells to everyday consumers and fleet buyers across nearly every major market on the planet.

Volkswagen makes money primarily by selling vehicles, with additional revenue from financial services like auto loans and leases offered to customers. It operates heavily in Europe and China, with China historically being its single largest market by volume. The company faces serious pressure on two fronts: intense competition from Chinese electric vehicle makers eating into its China sales, and the high cost of transitioning its massive manufacturing base away from combustion engines toward electric vehicles — a shift that is straining margins and requiring billions in investment over the coming years.

Winston Score History

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 501.3M (2021) → 501.3M (2025)

Score breakdown

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Quality

Gross Margin
15.1%
Thin — 15.1% gross margin
Operating Margin
4.2%
Thin — 4.2% operating margin
ROCE
0.9%
Weak — 0.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-0.7%
Shrinking sales (-0.7% YoY)
EPS YoY
-37.2%
Earnings shrinking (-37.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
313%
Turns 313% of profit into real cash
FCF Margin
-1.8%
Burning cash (-1.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
1.02
Elevated debt (1.02)
Interest Cover
16.86x
Comfortably covers interest (16.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
7.7x
Attractive valuation — P/E 7.7

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+4.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (7.7 → 3.2)

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Dividends

Dividend Yield
7.41%
Healthy income — 7.41% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth
-17.5%
Dividend cut (-17.5% YoY) — warning sign

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