Volkswagen AG (VOWG.DE) – A negative impact from higher inventory

Volkswagen AG (VOWG.DE) (Q1FY23)

Introduction

Volkswagen AG manufactures and sells automobiles in Germany, Europe, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services.

The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; and production and sale of passenger cars and light commercial vehicles, and related parts.

The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services.

The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components.

The Financial Services segment provides dealership and customer financing, leasing, banking and insurance, fleet management, and mobility services.

The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, KODA, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brand names.

Highlights

Volkswagen is currently witnessing higher level of inventories. The finished goods and purchased merchandise has increased from €29.5bn in Q1FY22 to €33.5bn in Q1FY23.

Stock performance

Over the past 3 years, Volkswagen delivered returns of 7% where the stock price increased from €143.4 in Jul 09, 2020 to €152.95 in Jul 07, 2023. The stock had a 200-Day Moving
Average of €163.3 and a 50-Day Moving Average of €151.52.

In the past 1 year, VOWG generated returns of -14% where the stock price plunged from €178.25 in Jul 14, 2022 to €152.95 in Jul 07, 2023. The stock had a 52 Week High of €209 and a 52 Week Low of €138.7. Over the past 3 months, Volkswagen’s returns declined by -2% where the stock price fell from €156.3 in Apr 11, 2022 to €152.95 in Jul 07, 2023.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 34

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