Porsche Automobil Holding SE (PAH3.DE) | Investment Case

1. Company Snapshot

1.a. Company Description

Porsche Automobil Holding SE, through its subsidiaries, operates as an automobile manufacturer worldwide.It operates through two segments, PSE and Intelligent Transport Systems.The company offers motorcycles, small cars, and luxury vehicles, as well as commercial vehicles, such as pick-ups, buses, and heavy trucks under the Volkswagen, Audi, SEAT, KODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Scania, and MAN brand names.

It also develops software solutions for transport logistics, as well as traffic planning and management; and provides dealer and customer financing, leasing, banking, insurance, fleet management, and mobility services.Porsche has an agreement with ABB to develop a high-power charger for its electric vehicles in Japan.The company was formerly known as Dr. Ing.

h.c. F.Porsche Aktiengesellschaft and changed its name to Porsche Automobil Holding SE in November 2007.Porsche Automobil Holding SE is headquartered in Stuttgart, Germany.

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1.b. Last Insights on PAH3

Porsche Automobil Holding SE's recent performance has been driven by reassessment of its valuation and earnings power. The company's strategic moves in the electric vehicle space and its continued involvement with Volkswagen are stirring investor interest. A recent report highlights that earnings and sentiment could now be at a trough after the company backed full-year guidance and reported earnings consistent with its profit warning. Additionally, investors are evaluating the company's role as the main holding vehicle for Volkswagen and Porsche AG.

1.c. Company Highlights

Last Price	32.99
Change Percentage	0.70%
Open	32.97
Previous Close	32.76
Market Cap ( Millions)	10103
Volume	32466
Year High	41.52
Year Low	30.55
M A 50	33.62
M A 200	35.73

FCF Yield	6.93%
Dividend Yield	5.79%
ROE	7.44%
Debt / Equity	18.59%
Net Debt / EBIDTA	237.50%
Price To Book	0.13
Price Earnings Ratio	1.91
Price To FCF	14.43
Price To sales	3.68
EV / EBITDA	6.38

2. Transcript Summary

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3. NewsRoom

Porsche Goes Hunting for Ammo, Not Autos

Mar -26

Source:

Porsche considers cutting electric sports vehicles, Bloomberg reports

Feb -03

Source:

Assessing Porsche Automobil Holding (XTRA:PAH3) Valuation After Recent Mixed Share Price Performance

Jan -30

Source:

Waabi raises up to $1 billion and partners with Uber to deploy 25,000 robotaxis as the race to dominate self-driving heats up

Jan -28

Source:

Waabi hauls in $750M Series C to become Canada’s newest autonomous vehicle unicorn

Jan -28

Source:

The Wait List for a Birkin or Rolex Is Getting Shorter

Jan -26

Source:

Ethernovia raises $90M as investors rush to fund ‘physical AI’

Jan -20

Source:

Ethernovia Raises Over $90 Million Series B to Scale Leading-Edge Autonomy and Physical AI Networking Chips

Jan -20

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Core Investment

Expected Growth: 4.65%

Porsche Automobil Holding SE's 4.65% core investment growth is driven by increasing demand for luxury vehicles, expansion into electric and autonomous segments, strategic partnerships, and cost optimization initiatives. Additionally, the company's strong brand reputation, innovative products, and growing presence in emerging markets contribute to its growth momentum.

Portfolio Investment

Expected Growth: 4.65%

Porsche Automobil Holding SE's 4.65% portfolio investment growth is driven by increasing demand for luxury vehicles, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on electric vehicle technology and sustainable mobility solutions has attracted environmentally conscious investors, contributing to the growth.

7. Detailed Products

Passenger Cars

Luxury sports cars, sedans, and SUVs designed for performance, comfort, and style

Macan

Compact luxury SUV with a focus on performance, comfort, and versatility

Cayenne

Luxury SUV with a focus on performance, comfort, and cargo space

911

Iconic sports car with a focus on performance, handling, and design

Boxster

Luxury roadster with a focus on performance, agility, and open-air driving

Cayman

Luxury sports car with a focus on performance, handling, and agility

Panamera

Luxury sedan with a focus on performance, comfort, and technology

Taycan

Luxury electric vehicle with a focus on performance, sustainability, and innovation

E-Performance Services

Range of services and solutions for Porsche's electric vehicles

Porsche Design

Luxury lifestyle products and accessories with a focus on design and innovation

Porsche Financial Services

Financial solutions and services for Porsche customers

8. Porsche Automobil Holding SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Porsche's products are highly differentiated, and customers are loyal to the brand. The threat of substitutes is low due to the unique design, performance, and luxury features of Porsche cars.

Bargaining Power Of Customers

Porsche's customers have some bargaining power due to the availability of alternative luxury car brands. However, Porsche's strong brand loyalty and customer retention programs mitigate this power.

Bargaining Power Of Suppliers

Porsche has a diverse supplier base, and no single supplier has significant bargaining power. The company's strong relationships with suppliers and its ability to negotiate prices also reduce supplier power.

Threat Of New Entrants

The automotive industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. New entrants would face significant challenges in competing with established players like Porsche.

Intensity Of Rivalry

The luxury car market is highly competitive, with established players like Mercedes-Benz, BMW, and Audi competing fiercely for market share. Porsche must continually innovate and differentiate its products to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.31%
Debt Cost	3.95%
Equity Weight	69.69%
Equity Cost	10.39%
WACC	8.44%
Leverage	43.49%

11. Quality Control: Porsche Automobil Holding SE passed 6 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

Mercedes-Benz

A-Score: 6.7/10

Value: 8.7

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Porsche

A-Score: 6.3/10

Value: 8.9

Growth: 2.6

Quality: 7.2

Yield: 6.2

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

A-Score: 5.8/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Redrow

A-Score: 5.1/10

Value: 6.8

Growth: 5.2

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Renault

A-Score: 4.4/10

Value: 9.3

Growth: 5.1

Quality: 1.9

Yield: 4.4

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Volvo Car

A-Score: 4.1/10

Value: 7.1

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 8.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.86%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.44%

Porsche Automobil Holding SE - DE000PAH0038

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PAH3

1.c. Company Highlights

Less Volatile

Average Quality

Stable Momentum

Better Quality

Cheaper

Higher Yield

Earnings Miss

Earnings Beats

Lower 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 (4.65%)

6. Segments

Core Investment

Expected Growth: 4.65%

Portfolio Investment

Expected Growth: 4.65%

7. Detailed Products

Passenger Cars

Macan

Cayenne

911

Boxster

Cayman

Panamera

Taycan

E-Performance Services

Porsche Design

Porsche Financial Services

8. Porsche Automobil Holding SE'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: Porsche Automobil Holding SE passed 6 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

32.99$

Current Price

32.99$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA