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Volkswagen AG

VOW.DE
41
Auto - Manufacturers · Consumer Cyclical
Exchange
Frankfurt Stock Exchange
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
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 motorcycles under a wide range of brand names. Its portfolio includes Volkswagen, Audi, Porsche, SEAT, Škoda, Lamborghini, Bentley, and MAN, among others. These vehicles are sold to everyday consumers, fleet operators, and commercial businesses across the globe.

The company earns money primarily by selling vehicles, with additional revenue from financial services like auto loans and leasing. Volkswagen operates in over 150 countries, with major manufacturing in Europe, China, and North America, generating roughly €300 billion in annual revenue. Its main competitive strength is its massive scale and broad brand portfolio spanning budget to luxury segments. The biggest challenge it faces is the costly and complex transition to electric vehicles, where it is investing heavily but faces stiff competition from Tesla and fast-growing Chinese automakers like BYD.

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
-0.8%
Shrinking sales (-0.8% YoY)
Profit growth
EPS YoY
-37.3%
Earnings shrinking (-37.3% 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
312%
Turns 312% 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)
7.1x
no trend
Attractive valuation — P/E 7.1

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

Cheaper or dearer next year
P/E vs Forward
+4.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (7.1 → 2.9)

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Dividends

Dividend
Dividend Yield
7.07%
no trend
Healthy income — 7.07% yield

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

Dividend record
Dividend Growth
-19.2%
no trend
Dividend cut (-19.2% YoY) — warning sign

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