Dr. Ing. h.c. F. Porsche AG (P911.DE) | Investment Case

1. Company Snapshot

1.a. Company Description

Dr. Ing.h.c. F.Porsche AG engages in automotive and financial services businesses.

The company engages in the development, manufacturing, and sale of vehicles, as well as provision of related services.It also offers customer and dealer financing, leasing, and mobility and other finance-related services; and accessories and fashion products.The company was formerly known as Porsche Fünfte Vermögensverwaltung AG and changed its name to Dr. Ing.

h.c. F.Porsche AG in November 2009.The company was founded in 2009 and is based in headquartered in Stuttgart, Germany.

Dr. Ing.h.c. F.Porsche AG operates as a subsidiary of Porsche Holding Stuttgart GmbH.

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1.b. Last Insights on P911

Dr. Ing. h.c. F. Porsche AG's recent performance has been impacted by several factors. The company's decision to scale back its electric vehicle (EV) plans, including shelving a future electric SUV, has led to a significant profit hit of $2.1 billion. Additionally, Porsche has issued its fourth profit warning of the year, citing weak demand, pressure in its key market China, and higher U.S. tariffs. The company has also delayed the launch of some all-electric models due to weak demand, leading to a revised profitability outlook of 2% this year, down from 5-7% previously. Furthermore, Porsche's parent company, Volkswagen, will take a $6 billion hit from the product overhaul. Analysts have also downgraded their price targets, with the consensus analyst price target shifting marginally lower from €47.29 to €46.82.

1.c. Company Highlights

Last Price	47.89
Change Percentage	2.24%
Open	47
Previous Close	46.84
Market Cap ( Millions)	43627
Volume	594182
Year High	63.32
Year Low	39.58
M A 50	44.3
M A 200	45.04

FCF Yield	3.42%
Dividend Yield	4.82%
ROE	9.33%
Debt / Equity	46.74%
Net Debt / EBIDTA	81.50%
Price To Book	1.87
Price Earnings Ratio	20.13
Price To FCF	29.26
Price To sales	1.12
EV / EBITDA	6.3

2. Transcript Summary

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3. NewsRoom

Is Porsche Fairly Priced After a 17.7% Slide and DCF Suggests Limited Upside?

Dec -06

Source:

Tesla in top 10 brands, hybrid reliability improves: New report

Dec -04

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Financial Services Roundup: Market Talk

Dec -04

Source:

Subaru, BMW top Consumer Reports' top auto brands; Toyota named most reliable, with Tesla most improved

Dec -04

Source:

Financial Services Roundup: Market Talk

Dec -04

Source:

Auto & Transport Roundup: Market Talk

Dec -03

Source:

Kevin O'Leary Says When He Rolled Up in His New Porsche, His Wife Mocked Him for Looking Like Every Other Bald Man in a Sports Car But He Didn't Care

Dec -03

Source:

Ferrari vs. Porsche: Which Luxury Icon Leads the Road Ahead?

Nov -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.44%)

6. Segments

Automotive

Expected Growth: 3.5%

Porsche's 3.5% growth is driven by increasing demand for luxury SUVs (Macan, Cayenne), strong sales of iconic sports cars (911, 718), and expanding electric vehicle offerings (Taycan). Additionally, the company's strategic investments in digitalization, autonomous driving, and mobility services are expected to fuel future growth.

Financial Services

Expected Growth: 2.8%

Dr. Ing. h.c. F. Porsche AG's Financial Services segment growth of 2.8% is driven by increasing demand for automotive financing, leasing, and insurance services, as well as expanding mobility offerings and digitalization efforts. Strong sales of Porsche vehicles also contribute to growth, as more customers opt for financial services to acquire their vehicles.

Reconciliation

Expected Growth: 2.2%

Dr. Ing. h.c. F. Porsche AG's growth of 2.2 is driven by strong demand for luxury vehicles, particularly SUVs and electric models. The company's solid financials, investments in digitalization, and expanding product lineup contribute to its growth. A recovering global economy and increasing consumer spending on premium goods also support Porsche's performance.

7. Detailed Products

Porsche 911

The Porsche 911 is a luxury sports car known for its distinctive design, powerful engine, and exceptional handling. It is available in various models, including the Carrera, Carrera S, GT3, and Turbo.

Porsche Taycan

The Porsche Taycan is an all-electric luxury sports car that combines sustainability with exceptional performance. It features a powerful electric motor, advanced technology, and a spacious interior.

Porsche Macan

The Porsche Macan is a compact luxury SUV that offers a blend of versatility, comfort, and driving dynamics. It is available in various models, including the Macan, Macan S, and Macan GTS.

Porsche Cayenne

The Porsche Cayenne is a mid-size luxury SUV that combines comfort, versatility, and exceptional performance. It features a range of engine options, advanced technology, and a spacious interior.

Porsche Boxster

The Porsche Boxster is a convertible sports car that offers a fun and engaging driving experience. It features a lightweight design, powerful engine, and advanced technology.

Porsche Cayman

The Porsche Cayman is a mid-engine sports car that offers exceptional handling, agility, and performance. It features a range of engine options, advanced technology, and a spacious interior.

Porsche GT3 Cup

The Porsche GT3 Cup is a high-performance racing car designed for track use. It features a powerful engine, advanced aerodynamics, and a lightweight design.

8. Dr. Ing. h.c. F. Porsche AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dr. Ing. h.c. F. Porsche AG is relatively low due to its strong brand loyalty, unique product offerings, and high-performance capabilities that differentiate it from potential substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Porsche is moderate. While customers have some negotiating power due to the availability of alternative luxury car brands, Porsche's strong brand reputation and premium product offerings limit the customers' ability to exert significant pressure.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Porsche is relatively low. Porsche has a large and diversified supplier base, which reduces the dependence on individual suppliers. Additionally, Porsche's significant purchasing volume and long-term partnerships with suppliers give it a strong negotiating position.

Threat Of New Entrants

The threat of new entrants for Porsche is low due to high barriers to entry in the luxury automotive industry, including significant investment requirements, strict regulatory standards, and established brand loyalty.

Intensity Of Rivalry

The intensity of rivalry for Porsche is high due to the competitive nature of the luxury automotive industry, with several established brands competing for market share. However, Porsche's strong brand reputation and unique product offerings help it maintain a competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	32.97%
Debt Cost	4.33%
Equity Weight	67.03%
Equity Cost	9.70%
WACC	7.92%
Leverage	49.19%

11. Quality Control: Dr. Ing. h.c. F. Porsche AG passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BMW

A-Score: 6.3/10

Value: 9.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

A-Score: 6.3/10

Value: 10.0

Growth: 3.6

Quality: 2.4

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Mercedes-Benz

A-Score: 6.3/10

Value: 8.9

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Exor

A-Score: 4.7/10

Value: 7.7

Growth: 3.3

Quality: 7.3

Yield: 0.6

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

Porsche

A-Score: 4.3/10

Value: 5.5

Growth: 4.6

Quality: 4.8

Yield: 5.6

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

Ferrari

A-Score: 4.2/10

Value: 0.7

Growth: 7.7

Quality: 7.2

Yield: 1.2

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.65%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.92%

Dr. Ing. h.c. F. Porsche AG - DE000PAG9113

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on P911

1.c. Company Highlights

Weak Momentum

Average Quality

Average Yield

Earnings Beats

Earnings Miss

Revenues Miss

Medium Volatility

Stable Momentum

Revenues Beats

Fairly Valued

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.44%)

6. Segments

Automotive

Expected Growth: 3.5%

Financial Services

Expected Growth: 2.8%

Reconciliation

Expected Growth: 2.2%

7. Detailed Products

Porsche 911

Porsche Taycan

Porsche Macan

Porsche Cayenne

Porsche Boxster

Porsche Cayman

Porsche GT3 Cup

8. Dr. Ing. h.c. F. Porsche AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Dr. Ing. h.c. F. Porsche AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.89$

Current Price

47.89$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA