Volkswagen AG (VOW3.DE) stock analysis

In our weekly check, Volkswagen AG is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 7, red flags: 7.

About Volkswagen AG

Volkswagen AG is a Consumer Cyclical company (Auto - Manufacturers) based in Germany, listed on XETRA as VOW3.DE.

What our checks show for VOW3.DE

Red flags

• The net margin fell by 4.3 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• The gross margin fell by 3.6 points, to 15.2%: costs are rising faster than prices.
• The net margin is only 1.8%: little room if costs rise.
• Free cash flow is negative (-1.8% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 78% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.5x a year of EBITDA (debt/equity 1.06). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.9 times: a weak year could make the payments hard.
• Analysts expect only about 0.8% a year of growth in revenue.
• Revenue grew only 4.8% a year over the last 3 years.
• Earnings per share fell 29.4% a year over the last 3 years.
• Net profit fell 27.9% a year over the last 3 years.
• Recovering from its deepest fall took about 2 years.

Strengths

• Operating cash flow is 3.03x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 38.3% a year over the next years.
• The price is 6.6 times earnings (P/E), reasonable for its growth.
• A large company: market value $38.77 billion.

Next earnings report: 2026-10-29

Similar companies

BMW.DE · MBGAF · HMC · F · DTG.DE · GM

Questions

What grade does Volkswagen AG (VOW3.DE) have?

In our weekly check, Volkswagen AG is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 7, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of VOW3.DE stock?

This week's biggest flags for Volkswagen AG: Margins falling, Gross margin falling, Thin margins. In total 14 of 25 checks show a warning or a red flag.

What does Volkswagen AG do?

Volkswagen AG is a Consumer Cyclical company (Auto - Manufacturers) based in Germany, listed on XETRA as VOW3.DE.

When does Volkswagen AG report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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