Volkswagen AG, trading under the symbol PNK:VWAGY, is a major player in the global automotive industry. Known for its diverse range of vehicles, Volkswagen is expanding its electric vehicle lineup to meet growing demand. The company faces competition from other automotive giants like Toyota and Ford, but it remains a leader in Europe.
Volkswagen is set to release its quarterly earnings on March 12, 2025, with analysts estimating an EPS of $1.47 and projected revenue of $84.82 billion. Despite a low P/E ratio of 4.31, Volkswagen's earnings yield of 23.19% suggests strong potential returns for investors. The company's price-to-sales ratio of 0.17 indicates modest market valuation of its sales.
Volkswagen plans to manufacture a new entry-level electric car at its Palmela plant in Portugal, priced at 20,000 euros (approximately $21,636). This move underscores Volkswagen's commitment to expanding its electric vehicle lineup. The launch is set for 2027, highlighting the company's strategic focus on strengthening production capabilities in Europe.
Volkswagen's truck division, Traton, projects a lukewarm commercial vehicle market for 2025, following challenges in Europe, particularly in Germany. These challenges impacted financial performance last year. Despite this, Volkswagen maintains a balanced capital structure with a debt-to-equity ratio of 1.11 and a current ratio of 1.15, indicating reasonable liquidity.
Porsche SE, Volkswagen's largest shareholder, anticipates a significant financial setback with a projected loss after tax of approximately 20 billion euros ($21.7 billion) for 2024. This loss is due to impairments on its stake in Volkswagen. Despite these challenges, Volkswagen's enterprise value to sales ratio of 0.62 and enterprise value to operating cash flow ratio of 10.79 reflect its cash flow generation relative to its enterprise value.
