Analysis of Volkswagen share price

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As you undoubtedly already know, the automobile sector, including the design, construction and commercialisation, is one of the largest sectors of the European stock markets. Among the most reputable automobile construction companies in this sector, and one whose shares are extremely popular, is Volkswagen. Here we offer you the opportunity to learn more about the Volkswagen Company and read about some practical indicators to assist you in completing a pertinent analysis of the price of this share for trading online.  

Latest news

Possible takeover of Europcar by Volkswagen

24/06/2020 - 12h08

According to sources close to the case, the Volkswagen group has approached Europcar with a view to a takeover proposal. Find out what is currently known about this news.

Elements that can influence the price of this asset:

Analysis N°1

The relationships that the Volkswagen group created with other car manufacturers are of course very important. This will monitor potential partnerships or commercial contracts that can improve the group's growth.

Analysis N°2

Innovation is of course also a key factor for Volkswagen and its growth and the development of new vehicles and engines will be closely monitored, particularly in the green and autonomous vehicle segment.

Analysis N°3

It goes without saying that the Volkswagen Group's competition must also be monitored, paying particular attention to the innovations of these companies and the evolution of their respective market shares.

Analysis N°4

Like all car manufacturers, Volkswagen's sales are largely dependent on the price of fuel and therefore indirectly on the price of oil, which you must therefore monitor.

Analysis N°5

Finally, we will keep an eye on the laws used to protect the interests of local manufacturers in emerging countries in particular.

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General presentation of the Volkswagen Company:

Volkswagen is a well known German brand which is the leading company in the European automobile construction sector. Its turnover is generated by numerous activities, principally the sale of vehicles producing 90% of profits, but also the construction, and the supply of financial services such as credits and rentals. More precisely, its turnover is generated as follows:

With no less than 94 production sites, the Volkswagen Company generates its turnover in Europe as well as Pacific Asia, South America and North America.


The major competitors of Volkswagen:

The Volkswagen group is active in the mainstream automobile sector. It therefore faces strong competition from other automobile manufacturers in Europe and worldwide.  Here we provide information on the major competitors of this German automobile manufacturer to assist you in analysing this company’s share price on the stock markets and trading in it effectively online.

On the international level, the prominent competitor of Volkswagen is still the Japanese manufacturing company Toyota who passed into second place after Volkswagen in 2016. Volkswagen is therefore the world leader of this sector with annual growth currently standing at 3.8% with over 10.3 million vehicles against 10.18 million vehicles and an annual growth rate of only 0.2% for Toyota.

Among the major competitors of this brand we can note the following companies:

In Europe, its major competitors are PSA and Renault.


The major partners of Volkswagen:

Volkswagen regularly implements strategic partnerships with various automobile sector players and those relating to this sector’s derivatives. Here are details on recent major partnerships of the group:

Finally, Volkswagen has signed a partnership with the LG Group in order to create innovations in the connected driving sector for future vehicles of the group synergising their different skills and specialities.


Different activities and brands owned by Volkswagen:

As briefly mentioned above, Volkswagen doesn’t solely produce vehicles of its own brand. It also possesses various different brands, either wholly or through shareholding. In order to have a better grasp of the German company’s scope of activities, here is a list of brands which are directly attached to it.

In view of the different brands that make up the Volkswagen automobile company, it is easier to understand the diversity of vehicles which it has to offer, from small passenger vehicles to heavy goods vehicles, two-wheelers and even luxury and sports cars. It is worth noting that Volkswagen isn’t only a diversified automobile manufacturer, but that it also offers other services such as financing and insurance and also engages in the manufacturing of engines destined for the industry or navigation.


Introduction and quote of Volkswagen shares:

The price of Volkswagen shares is quoted on the Euronext Amsterdam stock market. It is also integrated into the calculation of the German DAX 30 stock market index and is therefore one of the top 30 assets representing the largest stock market company capitalisations of this country.

To achieve a correct analysis of the Volkswagen share price you should of course favour innovations and information on new releases in terms of vehicles. However, the historical analysis of this price shows that this asset has been following a rising curve over the last few years. We can actually observe a strong rising trend with a peak in November 2008 that was followed by a technical correction.


Important stock market data about the Volkswagen shares:

Now that you know more details relating to the Volkswagen share price movements over the latter years it is also important to know other, more general data that is just as significant such as the following:


Financial and economic history of the Volkswagen Company:

In order to better understand what has influenced the Volkswagen share price movements over the latter years here we provide a recent financial and economic history of the group.

With this information you can better understand the events that have influenced the trends in the Volkswagen share price and thereby better anticipate future movements through fundamental analysis.


What are the advantages of Volkswagen stock as an asset?

There’s a reason why so many investors have recently taken interest in Volkswagen stock. As a matter of fact, the German company is blessed with undeniable attributes which are both

future strengths and which allow for a good sense of its upcoming results. In order to convince you, here’s a detailed summary of the asset’s advantages as well as the company’s strengths.

First of all, as we’ve demonstrated, the Volkswagen company has been capable of diversifying its activity as well as its products in order to compensate for periods of decreased demand, unlike most of its competition. Consequently, it is now able to offer a very diverse range of vehicles, thus allowing it to be involved in different markets simultaneously.

Volkswagen is also a company with a strong international presence. Besides owning different brands all over Europe and the world, it sells its vehicles in a great deal of countries. It must be noted that the company benefits from a solid reputation which it has been able to acquire over time, seeing as it is one of the oldest automobile manufacturers in the world.

Thanks to its few high-end and very high-end vehicle brands, Volkswagen also benefits from the luxury market which is subject to very little of the disruption caused by the economic crisis. Its popular sections are therefore more resistant to market fluctuations, even at times of poor economic growth. Volkswagen is also a very well represented brand in the area of motor sports. This allows it to further better its public image, thus increasing sales.

Another one of Volkswagen’s assets involves the distribution of its production throughout the world. The fact that the company owns factories in a number of different countries allows for a better management of its production costs as well as a strong and competitive market positioning. Throughout all of its different factories, Volkswagen currently employs over 350 000 workers.

Concerning Volkswagen’s future opportunities, there’s a myriad of possibilities. There are strong indications that the German company will bring itself closer to foreign manufacturers with whom it could set up profitable future partnerships.

The company also relies on innovation with a continuous research in technological fields of the future such as autonomous vehicles, in-vehicle systems or even green cars. Benefiting from true development capabilities, it could stand out from its competition thanks to practical innovations.


The disadvantages of Volkswagen stock as an asset:

Even if Volkswagen does offer so many advantages to investors, it is essential to also be familiar with its shortcomings before rushing into online trading. Here are a few of its weaknesses as well as threats the company will have to face in the future.

To this day, one of Volkswagen’s biggest weaknesses remains the fact of not being well represented on emerging markets, despite the fact that these are very strong. Even though the brand is one of the leading European companies and is well exported in regions such as North America, it still struggles to establish itself in a ruthless Asian market where competition is very high. This difficulty is accentuated by the restrictive legislation found in some emerging countries like India whose objective is to protect the interests of local manufacturers such as TATA.

The pressure put forth by European governments in regard to ecology of new vehicles is an additional constraint faced by Volkswagen who’s just starting to produce its range of clean automobiles.

Finally, even if Volkswagen’s capacity for innovation is one of its main strengths, its competition will not easily let itself be outdone, forcing the company into a technological race in order to maintain its status as a modern automobile manufacturer.

Frequently Asked Questions

What financial results have Volkswagen recently published?

The latest results published by the Volkswagen Company are for the 2019 financial year.  Among the figures that you should bear in mind from this period are the following; the financial result of the group stands at 14,029 million Euros for this year, the PER stands at 3.72 Euros, the dividend was set at 6.53 Euros per share and the return on the year is €26.60 per share. The group’s equity also achieved the amount of €123,651 million.

On which markets are Volkswagen shares quoted?

It is of course on the German market that the Volkswagen share price is quoted. In fact, this company is quoted on the Munich stock market, on the Xetra financial marketplace.  We also note that this company’s share price is included in the National German stock market index, the DAX30, and therefore Volkswagen is one of the top 30 German companies relating to stock market capital. You can follow the movements in this share price from this financial market.

Where in the world does Volkswagen achieve the majority of its turnover?

It is of course on the German markets and the European markets (excluding Germany) that the Volkswagen Group achieves the most profit with 18.5% and 42.8% of its turnover resulting from these two geographical areas. The other markets successfully penetrated by this company where it markets its vehicles include Pacific Asia from which originates 18.3% of its turnover, North America with 16% of its turnover and South America with 4.4%.

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