VOLKSWAGEN

Analysis of Volkswagen share price

--- Ad ---
BUY   SELL
72% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

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

Volkswagen: sales up 19.3% in February

16/03/2021 - 08h59

Despite the current difficult market environment, Volkswagen recorded a significant increase in vehicle sales in February.

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.

72% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500

General presentation of Volkswagen

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:

  • Nearly 90% of Volkswagen’s turnover is from the sale of vehicles to individuals and businesses under the brand names Volkswagen, Skoda, Bentley, Audi, Seat, Porsche, Scania and MAN.
  • The rest of its turnover is derived from financial services such as vehicle financing with rentals, leasing and insurance products.

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 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.

Analysis of Volkswagen share price
72% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500

The major competitors of Volkswagen

The Volkswagen Group is one of the leading car manufacturers in Europe and worldwide in terms of turnover and the number of vehicles produced each year. However, it is not alone in this sector and the influence of its competitors can have an impact on its results and on the development of its shares on the stock exchange. This is why it is essential to know them well.

In Europe

Volkswagen's direct competition in Europe consists mainly of the French manufacturers PSA and Renault, but also the Italian manufacturer Fiat, which is a distant second. It should be remembered that Volkswagen is currently the market leader for private cars in the European Union.

Internationally

Volkswagen is also well positioned, but faces some serious competitors such as Ford, General Motors, Toyota, BMW and Hyundai. The market shares of these companies change every year in terms of both the number of vehicles sold and the turnover achieved. But it is above all the profits and therefore the profitability of these companies that will influence their share price.


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:

Tata

Volkswagen recently implemented a partnership with Tata in India for the communal development of components for vehicles sold on the continent.

Nvidia

Volkswagen is also partnered with the NVidia semi-conductor manufacturer to develop automatic learning software to ease traffic circulation in the towns and cities.

LG 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.

72% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500
The factors in favour of a rise in the Volkswagen share price:

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 factors in favour of a drop in the Volkswagen share price:

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.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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%.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Trade CFDs with Plus500