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Volkswagen AG logo

Volkswagen AG

VWAGY
39
Auto - Manufacturers · Consumer Cyclical
Price
$8.51
-0.09 (-1.05%)
Market Cap
$42.66B
Exchange
Other OTC
Winston Score
39
Winston is serious
Below-average fundamentals — multiple weak pillars.

Volkswagen AG is a German automaker that designs and sells cars, trucks, and motorcycles under a large family of brands. Its portfolio includes Volkswagen, Audi, Porsche, SEAT, Škoda, Lamborghini, Bentley, and heavy truck brands like MAN and Scania. It sells vehicles to everyday consumers and commercial fleet operators across more than 150 countries.

The company earns money primarily by selling vehicles, with additional revenue from financial services like auto loans and leasing offered through its captive finance arm. Volkswagen is one of the largest automakers in the world by volume, with major manufacturing operations in Europe, China, and North America. Its wide brand portfolio and deep dealer network give it some competitive staying power, but its heavy reliance on the Chinese market — which accounts for roughly a third of global sales — is a significant risk, as that market has grown more competitive and economically uncertain in recent 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: 5.01B (2021) → 5.01B (2025)

Score breakdown

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Quality

Gross Margin
16.7%
Thin — 16.7% gross margin
Operating Margin
3.2%
Thin — 3.2% operating margin
ROCE
0.5%
Weak — 0.5% 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
-5.6%
Shrinking sales (-5.6% YoY)
EPS YoY
-37.3%
Earnings shrinking (-37.3% YoY)

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

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
263%
Turns 263% of profit into real cash
FCF Margin
-2.4%
Burning cash (-2.4%)

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

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Stability

Debt / Equity
1.62
Elevated debt (1.62)
Interest Cover
6.90x
Adequate interest coverage (6.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
7.3x
Attractive valuation — P/E 7.3

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

P/E vs Forward
+4.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (7.3 → 3.1)

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Dividends

Dividend Yield
7.52%
Healthy income — 7.52% yield

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

Dividend Growth
-18.4%
Dividend cut (-18.4% YoY) — warning sign

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