Latest news with #stockdecline
Forbes
10 hours ago
- Automotive
- Forbes
What's Happening With VW Stock?
Volkswagen stock (OTCMKTS: VWAGY) has seen a decline, with the stock dropping roughly 20% over the last twelve months. In contrast, competitor GM's shares have largely remained stable during the same timeframe. Several factors have influenced the stock performance in recent quarters, including a weak macroeconomic climate, high domestic costs, sluggish EV demand, and increasing competition from lower-cost Chinese manufacturers. Volkswagen's U.S. operations are also experiencing significant challenges due to the extensive tariffs enacted by President Donald Trump. Approximately one-third of Volkswagen-branded vehicles sold in the U.S. are imported, with 100% of Audi and Porsche vehicles sold domestically being imported. The company has revealed intentions for considerable investments in the U.S., although these are expected to unfold over an extended period. China, the company's largest single market, continues to be challenging amidst an intense price competition and the emergence of local EV brands. Group sales in China decreased by 9.5% to 2.9 million units last year. In response, Volkswagen is intensifying its localization efforts, planning to introduce over 30 new models in China within the next three years, consisting of both ICE vehicles and new energy vehicles specifically designed for local buyers. VW is also aiming to significantly streamline its German operations through a comprehensive restructuring. The company intends to reduce production capacity in Germany by more than 700,000 units and decrease its workforce by 35,000, primarily through voluntary departures, by the end of this decade. These initiatives are intended to restore profitability in Europe, where demand has declined and costs remain high. VW is also shifting its Wolfsburg plant to become a center for its EV future. The production of a new entry-level EV, priced around Euro 20,000 ($21,000), is slated to begin there in 2027. The auto giant anticipates that affordable EVs will be crucial in helping it regain market share, especially as pricing becomes more competitive. Separately, if you're seeking growth with a smoother experience than an individual stock, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception. We believe that VW stock appears to be a reasonable value at current levels of approximately $10 per share. VW stock is trading at around 5x trailing earnings, which is even lower than U.S. automaker Ford, which trades at about 6x. The stock also boasts a substantial dividend yield nearing 7%. Although VW's transition to EVs may be progressing slowly, the company could possess certain advantages in the long term. VW has a broad range of brands that can provide consumers with significant options while offering the company economies of scale as it standardizes its platforms, potentially enhancing margins. VW is also concentrating on backward integrating its EV operations by investing in the development of its battery facilities. The company has also taken steps to unlock value from its brand portfolio. VW made its sports car brand Porsche public in 2022, and we believe it might consider doing the same with its Lamborghini supercar brand, particularly in light of the premium investors are willing to pay for luxury and performance brands. For instance, Ferrari has a market cap exceeding $80 billion, surpassing VW's current market valuation. We estimate VW stock is worth around $12 per share, which is approximately 20% above the current market price. Check out our interactive analysis on Volkswagen Valuation: Expensive Or Cheap? for further insights. View our dashboard on Volkswagen Revenue for an overview of Volkswagen's business model and the expected trends in its revenues.
Bloomberg
a day ago
- Business
- Bloomberg
Zaslav Reverses Course on Merger That Lost $40 Billion in Value
Just three years after arguing that the best way to boost the value of Warner Media and Discovery Inc. was to combine their assets, Chief Executive Officer David Zaslav is now saying that the real key to unlocking their potential worth is to split them apart. The stock has declined about 60% since that merger was completed in April 2022, wiping out some $40 billion from the company's market value.
Arab News
25-05-2025
- Business
- Arab News
Closing Bell: Saudi main index slips to close at 10,999
RIYADH: Saudi Arabia's Tadawul All Share Index slipped on Sunday, falling 118.96 points, or 1.69 percent, to close at 10,999.78. The total trading turnover of the benchmark index stood at SR3.44 billion ($917 million), with 41 stocks advancing and 203 declining. Similarly, the Kingdom's parallel market Nomu dropped 242.96 points, or 0.89 percent, to close at 27,017.77. A total of 32 listed stocks advanced, while 56 retreated. The MSCI Tadawul Index also declined, losing 26.41 points, or 1.85 percent, to close at 1,402.40. The best-performing stock of the day was Saudi Steel Pipe Co., which saw its share price surge 4.79 percent to SR61.20. Other top performers included Raoom Trading Co., with its share price rising 4.35 percent to SR72.00, and National Industrialization Co., which gained 3.43 percent to close at SR9.36. ACWA Power Co. Fund recorded the most significant drop, falling 7.79 percent to SR251.00. Saudi Co. for Hardware saw its share price decline by 4.39 percent to SR29.40, while Alujain Corp. fell 4.38 percent to SR36.05. On the announcement front, Sumou Real Estate Co. said it has signed a development agreement with the National Housing Co. for the Areem Makkah project. The contract involves constructing residential units — primarily villas — on land allocated to Sumou within the Makkah Gate project in Makkah City, with an estimated value of SR680 million. According to a statement on Tadawul, the 42-month project is expected to positively impact the company's financial results once sales and implementation commence. Sumou Real Estate Co. ended the session down 1.17 percent at SR44.00. Dr. Soliman Abdul Kader Fakeeh Hospital Co. has signed a contract with Advanced Horizons Contracting Co. for the construction of a new medical center in Zahra, Jeddah. A bourse filing revealed that the contract is valued at approximately SR101.8 million. The full cost of construction and finishing will be funded by Yaser Yousef Naghi for Investment Co., as stipulated in the agreement. Under the ownership of Yaser Yousef Naghi for Investment Co. and the oversight of DSFH, AHC will carry out all construction and finishing work for the Zahra Medical Center. DSFH will provide the medical equipment and furniture separately, in accordance with the framework agreement. Dr. Soliman Abdul Kader Fakeeh Hospital Co. ended the session at SR42.85, down 0.35 percent. Mutakamela Insurance Co. announced it has obtained approval from the insurance authority to renew its license to operate in the Kingdom. The renewed license will allow the company to conduct insurance activities from Aug. 22, 2025, through Aug. 21, 2028, according to a Tadawul statement. Mutakamela Insurance Co. ended the session down 1.85 percent at SR15.02.
Arab News
11-05-2025
- Business
- Arab News
Closing Bell: Saudi main index slips to close at 11,346
RIYADH: Saudi Arabia's Tadawul All Share Index slipped on Sunday, losing 17.52 points, or 0.15 percent, to close at 11,346.59. The total trading turnover of the benchmark index was SR3.32 billion ($896 million), as 108 of the stocks advanced and 128 retreated. The Kingdom's parallel market, Nomu, also lost 508.04 points, or 1.82 percent, to close at 27,423.45. This comes as 30 stocks advanced while 45 retreated. The MSCI Tadawul Index followed suit and lost 0.22 points, or 0.02 percent, to close at 1,451.79. The best-performing stock of the day was SHL Finance Co., whose share price surged 8.74 percent to SR19.90. Other top performers included SICO Saudi REIT Fund, which saw its share price rise 6.54 percent to SR4.40, as well as National Medical Care Co., whose shares surged 4.93 percent to SR149. Middle East Specialized Cables Co. recorded the steepest decline, falling 8.33 percent to SR33. Fawaz Abdulaziz Alhokair Co. followed with a 6.62 percent drop to SR14.94, while Saudi Chemical Co. slipped 6.47 percent to SR8.39. On the announcements front, MBC Group Co. reported its interim financial results for the period ending March 31. According to a statement on Tadawul, the company posted a net profit of SR263.5 million in the first quarter of 2025, marking a 117.2 percent increase compared to the same period in 2024. The surge in profit was primarily driven by a SR190 million rise in gross profit, attributed to higher revenues during the month of Ramadan. MBC Group Co. ended the session at SR43.90, up 0.47 percent. Al-Rajhi Co. for Cooperative Insurance also announced its interim financial results for the first quarter. A bourse filing showed that the company posted a net profit of SR90.7 million for the period ending March 31, representing an 18.4 percent decline compared to the same quarter last year. The drop in net profit was primarily attributed to a decrease in the insurance service result before re-takaful, total comprehensive income, and total investment income, as well as an increase in other operating expenses and gross written premiums. Al-Rajhi Co. for Cooperative Insurance ended the session at SR123.40, down 2.76 percent. Saudi Ground Services Co. has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the company reported a net profit of SR97.6 million in the first quarter of 2025, marking a 37 percent increase compared to the same period in 2024. The growth was primarily driven by an SR18.3 million rise in revenue year on year. Saudi Ground Services Co. ended the session at SR49.00, down 1.53 percent. Saudi Chemical Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing showed the company reported a net profit of SR82.33 million for the period ending March 31, reflecting a 9.9 percent decline compared to the same quarter last year. The decrease was attributed to higher finance costs, the revaluation of derivative financial instruments related to interest rate exposure, and an increase in zakat and tax provisions. Saudi Chemical Co. ended the session at SR8.95, down 6.47 percent. Dallah Healthcare Co. has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the company reported a net profit of SR155.56 million in the first quarter of 2025, marking a 30.3 percent increase compared to the same period a year earlier. The rise in profit was driven by higher revenues, along with non-recurring gains of SR51 million resulting from the company's 33.33 percent stake in a real estate fund through an in-kind contribution of land. Dallah Healthcare Co. ended the session at SR120, up 0.17 percent. Tamkeen Human Resource Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing revealed the company recorded a net profit of SR26 million for the period ending March 31, representing a 40.54 percent increase compared to the same quarter last year. The surge in earnings was attributed to growth in the group's revenues, gross profit, and operating profit. Tamkeen Human Resource Co. ended the session at SR55.30, up 3.61 percent. Umm Al Qura for Development and Construction Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing showed the company posted a net profit of SR159.6 million for the period ending March 31, reflecting a staggering 3,219.3 percent increase compared to the same quarter a year earlier. The sharp rise in profit was primarily driven by a significant surge in revenues. Umm Al Qura for Development and Construction Co. ended the session at SR24.26, up 0.34 percent. Taiba Investments Co. has announced its interim financial results for the period ending March 31. According to a statement on Tadawul, the company reported a net profit of SR131.3 million in the first quarter of 2025, marking a 36.6 percent increase compared to the same quarter last year. This growth is mainly attributed to the rise in operating revenues during the first quarter of 2025. Taiba Investments Co. ended the session at SR43.25, up 1.5 percent.
