VWAPY - Volkswagen: It Gets Worse Before It Gets Better
2024-03-13 16:21:57 ET
Summary
- Despite a challenging and competitive market, Volkswagen delivered a solid performance in 2023 with increased deliveries.
- The company announced a dividend hike to €9 per share, confirming a 7.5% yield.
- Lower CAPEX thanks to new collaborations and a cost-saving plan in progress confirm our investment thesis.
Following our first yearly publication on Seeking Alpha, Volkswagen Is Set To Outperform In 2024 ([[VWAGY]], [[VLKAF]], [[VWAPY]]), today we are back to comment on one of Mare Evidence Lab's top picks. Firstly, it is crucial to note that the company is moving in the right stock price direction and is outperforming the market. Before going to the Q4 details, our buy rating thesis is supported by the EU's commitment to support the State Members' automotive competitiveness . In addition, Volkswagen is yielding 7.5%. The company's equity value is lower than its industrial net liquidity, and coupled with its equity stake in listed companies such as P911 and Traton, this results in what we call a negative stub value. Furthermore, there is a new strategy to reduce CAPEX with new external cooperation and partnerships. The company is also undergoing management changes and implementing cost reductions to increase competitiveness and regain investor confidence....
Volkswagen: It Gets Worse Before It Gets Better