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Volkswagen AG

VLKPF
35
Auto - Manufacturers · Consumer Cyclical
Exchange
Other OTC
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Good
Stability
Strong
Valuation
Exceptional
Dividends
Good

Winston Score History

The full picture

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.

Score breakdown

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Quality

Profit per sale
Gross Margin
15.1%
Thin — 15.1% gross margin
Profit after running costs
Operating Margin
4.2%
Thin — 4.2% operating margin
Return on the money invested
ROCE
4.5%
Weak — 4.5% 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 growth
Sales YoY
-0.7%
Shrinking sales (-0.7% YoY)
Profit growth
EPS YoY
-37.2%
Earnings shrinking (-37.2% YoY)

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

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
313%
Turns 313% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
1.02
Elevated debt (1.02)
Covers its interest
Interest Cover
16.86x
Comfortably covers interest (16.9x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
7.2x
no trend
Attractive valuation — P/E 7.2

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

Cheaper or dearer next year
P/E vs Forward
+4.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (7.2 → 2.9)

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Dividends

Dividend
Dividend Yield
7.41%
no trend
Healthy income — 7.41% yield

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

Dividend record
Dividend Growth
-17.5%
no trend
Dividend cut (-17.5% YoY) — warning sign

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