reports
- Richard Hilgert
Morningstar | Volkswagen's Traton IPO Prices at EUR 27: Maintaining EU...
No-moat-rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, Seat, Skoda, and Volkswagen automobiles plus MAN, Scania, and Volkswagen commercial trucks, announced that the initial public offering of its Traton group priced at EUR 27 per share, implying a total equity value of EUR 13.5 billion for the group. Traton includes MAN and Scania commercial truck and bus operations. The IPO stake was for roughly 11.5%, including overallotment shares. We estimate that an 11.5% IPO of Traton's e...
- Richard Hilgert
Morningstar | Volkswagen Says Traton IPO Expected by August: Maintaini...
No-moat-rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen automobiles, plus MAN, Scania, and Volkswagen commercial trucks, announced that it plans an initial public offering of its Traton SE group by summer break (August). The Traton group includes MAN and Scania commercial truck and bus operations. The company originally announced the formation of the group in August 2018, following up with a press release in September 2018 announcing a potential IPO. I...
- Richard Hilgert
Morningstar | Volkswagen 1Q Results Impress, 2019 Guidance Confirmed; ...
No-moat rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen automobiles, plus MAN, Scania, and Volkswagen commercial trucks, reported first-quarter diluted earnings per preference share before special items (EPS) of EUR 7.28, impressively trouncing the EUR 6.16 sell-side EPS consensus estimate by EUR 1.12 and EUR 0.82 better than the year-ago EPS. Guidance for 2019 includes increased consolidated revenue by as much as 5% and group operating margin in a ran...
- Richard Hilgert
Morningstar | EC Charges BMW, Daimler, and Volkswagen with Collusion o...
The European Commission has issued a "Statement of Objection" informing BMW, Daimler, and Volkswagen of its preliminary collusion findings. The EC said that, "…BMW, Daimler and VW participated in a collusive scheme, in breach of EU competition rules, to limit the development and roll-out of emission cleaning technology for new diesel and petrol passenger cars sold in the European Economic Area (EEA)" and that the, "three car manufacturers now have the opportunity to respond to our findings." W...
- Richard Hilgert
Morningstar | Volkswagen Attractively Valued Despite Headwinds
Uncertainty regarding regulators' intense scrutiny of diesel powertrain passenger vehicles will plague Volkswagen for several more months, and higher spending to launch electrified powertrains and diesel headline risk are pressuring the stock. But with an enviable portfolio of brands, a bevy of new and redesigned models, leading shares in many of the world's markets, and a healthy pile of cash (despite Dieselgate-related outlays), Volkswagen has been able to endure substantial fines and judgment...
- Richard Hilgert
Morningstar | U.S. Securities and Exchange Commission Sues Volkswagen;...
The U.S. Securities and Exchange Commission has filed a civil complaint against no-moat rated Volkswagen for securities fraud. The suit claims that the company issued $13 billion in securities in U.S. markets between April 2014 and May 2015 while company executives knew that numerous diesel vehicles had illegal cheat devices installed to evade emission standards. This, according to the SEC, fraudulently enabled the company to get more attractive pricing for the securities. According to Automotiv...
- Richard Hilgert
Morningstar | Volkswagen Reports 2018 Results, Guides to Improved 2019...
No-moat-rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen automobiles, plus MAN, Scania, and Volkswagen commercial trucks, reported full-year 2018 diluted earnings per preference share before special items, or EPS, of EUR 28.57, EUR 3.24 higher than the sell-side consensus but only EUR 0.50 better than the year-ago EPS. Guidance for 2019 includes increased consolidated revenue by as much as 5% and group operating margin in a range of 6.5%-7.5%. We think ...
- Richard Hilgert
Morningstar | Volkswagen Aggressively Moving to Electric Vehicles to S...
Uncertainty regarding regulators' intense scrutiny of diesel powertrain passenger vehicles will plague Volkswagen for several more months, and higher spending to launch electrified powertrains and diesel headline risk are pressuring the stock. But with an enviable portfolio of brands, a bevy of new and redesigned models, leading shares in many of the world's markets, and a healthy pile of cash (despite Dieselgate-related outlays), Volkswagen has been able to endure substantial fines and judgment...
- Richard Hilgert
Morningstar | Volkswagen Reports 2018 Preliminary Headline Results: Ma...
No-moat-rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen automobiles, plus MAN, Scania, and Volkswagen commercial trucks, reported preliminary headline numbers for full-year 2018. The company usually issues year-end headline financial results in a press release at the end of February that contains very few details then provides a full set of financial statements in a presentation to investors in the second week of March. Consolidated revenue, which inc...
- Richard Hilgert
Morningstar | VWAGY Updated Forecasts and Estimates from 23 Jan 2019
No-moat-rated Volkswagen reported earnings per diluted preferred share before special items, or EPS, of EUR 6.56. The result blew away the consensus EPS estimate of EUR 5.13 and was well ahead of the EUR 5.82 reported in the third quarter of 2017. Even so, a reduced effective tax rate versus the year-ago period was the primary driver behind the EPS outperformance. Volkswagen stock is attractively valued in our view, currently trading at 4-stars and a 33% discount to our EUR 230 fair value estima...
- Richard Hilgert
Morningstar | VWAGY Updated Forecasts and Estimates from 16 Nov 2018
No-moat-rated Volkswagen reported earnings per diluted preferred share before special items, or EPS, of EUR 6.56. The result blew away the consensus EPS estimate of EUR 5.13 and was well ahead of the EUR 5.82 reported in the third quarter of 2017. Even so, a reduced effective tax rate versus the year-ago period was the primary driver behind the EPS outperformance. Volkswagen stock is attractively valued in our view, currently trading at 4-stars and a 33% discount to our EUR 230 fair value estima...
- Richard Hilgert
Morningstar | Volkswagen 3Q Results Solid Despite Challenges; Maintain...
No-moat-rated Volkswagen reported earnings per diluted preferred share before special items, or EPS, of EUR 6.56. The result blew away the consensus EPS estimate of EUR 5.13 and was well ahead of the EUR 5.82 reported in the third quarter of 2017. Even so, a reduced effective tax rate versus the year-ago period was the primary driver behind the EPS outperformance. Volkswagen stock is attractively valued in our view, currently trading at 4-stars and a 33% discount to our EUR 230 fair value estima...
- Richard Hilgert
Morningstar | Audi Fined EUR 800 Million by German Public Prosecutor; ...
No-moat-rated Volkswagen's Audi brand was fined EUR 800 million by a German public prosecutor, consisting of a maximum penalty of EUR 5 million and a EUR 795 million disgorgement of economic benefits. Audi's press release referred to the prosecutor issuing an "administrative order" against the company for "deviations from regulatory requirements" in the manufacturing and sales of certain Audis equipped with V6 and V8 diesel engines. We view the fine as manageable, given Volkswagen's net liquidit...
- Richard Hilgert
Morningstar | Volkswagen Dieselgate creates an opportunity for long-te...
Uncertainty regarding regulators' intense scrutiny of diesel powertrain passenger vehicles will plague Volkswagen for several more months, and higher spending to launch electrified powertrains and diesel headline risk are pressuring the stock. But with an enviable portfolio of brands, a bevy of new and redesigned models, leading shares in many of the world's markets, and a healthy pile of cash (despite Dieselgate-related outlays), Volkswagen appears able to endure potentially substantial fines a...
- Richard Hilgert
Morningstar | VWAGY Updated Star Rating from 14 Aug 2018
Uncertainty regarding regulators' intense scrutiny of diesel powertrain passenger vehicles will plague Volkswagen for several more months, and higher spending to launch electrified powertrains and diesel headline risk are pressuring the stock. But with an enviable portfolio of brands, a bevy of new and redesigned models, leading shares in many of the world's markets, and a healthy pile of cash (despite Dieselgate-related outlays), Volkswagen appears able to endure potentially substantial fines a...
- Richard Hilgert
Volkswagen Reports Mixed 1Q Results on Higher Volume; Maintaining EUR ...
No-moat-rated Volkswagen reported earnings per diluted preferred share before special items, or EPS, of EUR 6.46. The result was somewhat disappointing, below the consensus EPS estimate of EUR 6.93 and the EUR 6.71 reported in the first quarter of 2017. However, consolidated revenue increased 4% to EUR 58.2 billion, from EUR 56.2 billion, on a 5% increase in consolidated unit volume, excluding China joint ventures, and a 1% increase in financial services revenue. Management confirmed 2018 guidan...
- Richard Hilgert
Raising Volkswagen FVE to EUR 230 ($57) from EUR 221 ($49)
After rolling our model to the next fiscal year on no-moat-rated Volkswagen, we are raising our fair value estimate to EUR 230 from EUR 221 (ADRs to $57 from $49 at a USD/EUR exchange rate of $1.2324). Most of the increase (EUR 5) was attributable to the time value of money since our last update. However, EUR 4 of the increase was attributable to a 15.5% jump in the book value of the financial services business as well as an improved unfunded pension and OPEB status, partially offset by higher d...
- Richard Hilgert
Volkswagen Management Shake-Up May Be Just What the Doctor Ordered, EU...
No-moat-rated Volkswagen has announced sweeping management changes meant to accelerate cost savings and technological development, and which could potentially open the door to at least a partial public offering of its heavy truck business. Dr. Herbert Diess, a former BMW executive, will be the new group CEO. Volkswagen took the added measure of reorganizing into six operating groups including volume, premium, super-premium, China, heavy truck, and financial services. The 4-star-rated shares of V...
- Richard Hilgert
Volkswagen Reports Solid 2Q Results, Points to Upper End of Guidance; ...
No-moat-rated Volkswagen, maker of Audi, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen automobiles, plus MAN, Scania, and Volkswagen commercial trucks, reported earnings per diluted preferred share before special items, or EPS, of EUR 6.24. The result was sharply lower than the consensus EPS estimate of EUR 6.80 but was well above the EUR 5.78 reported in the second quarter of 2016. Management released a statement regarding alleged German automaker collusion saying that it is common...
- Richard Hilgert
Media Reports Claim German Automakers Colluded on Diesel Emission Cont...
Recent media articles have circulated, reporting a possible European Commission, or EC, investigation into anti-competitive activities regarding diesel emissions of German automakers BMW (narrow moat), Daimler (no moat), and Volkswagen (no moat). At this point, with no official investigation opened, we have inadequate information to assess the probability of fines to change our fair value estimates. Having said this, given the high degree of European political demagoguery surrounding diesel emis...
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