Porsche AG (P911) is a distinguished German automobile manufacturer, renowned for its production of high-performance luxury sports cars, SUVs, and sedans.
For investors assessing the automotive sector, Porsche AG is generally on the list of names to consider. Its financial performance is frequently influenced by vehicle sales volumes, strategic advancements in electrification, and its profitability across various product lines.
Porsche AG Share Price & Chart
The Porsche share price chart doesn’t make for pretty reading for shareholders, with the stock having declined significantly since mid-2023. However, more recently, it seems to have found a base, and investors will be hoping it can start to reclaim some ground. In the last 12 months (as of July 25), the stock is down over 32%.
P/E Ratio Average (End of 2024): 13.37
Dividend Yield: 5.03%
Porsche AG EPS and Revenue Breakdown 2020-2024
| P911 | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | €34.75 | €25.86 billion |
| 2021 | €44.31 | €30.01 billion |
| 2022 | €5.44 | €34.35 billion |
| 2023 | €5.66 | €37.09 billion |
| 2024 | €3.94 | €36.17 billion |
Dr. Ing. h.c. F. Porsche AG, commonly known as Porsche AG (P911.DE), was founded in 1931 by Ferdinand Porsche. The company is globally recognised for its iconic 911 model, along with a range of other high-performance vehicles.
The ownership structure is complex. Porsche AG’s ownership is primarily held by the Volkswagen Group, which owns 75% of the company. However, the controlling interest in Volkswagen Group itself, and a direct 12.5% stake in Porsche AG, is held by Porsche SE.
Porsche SE is controlled by the Porsche-Piëch family, making them the ultimate influential owners. Additionally, the Qatari Investment Authority holds a small stake, while some shares are publicly traded following a 2022 IPO.
Shares of Porsche AG are primarily traded on the Frankfurt Stock Exchange (XETRA).
Porsche AG Stock Forecast
Data compiled by TradingView indicates that of the 22 analysts covering the stock, 4 have a “Buy” rating, 11 have a “Hold” rating, and 7 have a “Sell” rating.
A View From the Bulls: Overall, the bull case for Porsche AG is centred on its current valuation, given the fall in its share price. Another aspect that bullish investors may point to includes its unparalleled brand strength and its resilient position in the luxury automotive segment, which commands premium pricing and higher margins compared to mass-market manufacturers. Furthermore, the company’s strong cash generation, even amidst industry shifts, is a key positive.
While analysts at RBC Capital are cautious on the stock, having only initiated it with a Sector Perform rating in June, the firm did highlight some aspects that could result in upside. The bank told investors in a note that with the shares down 65% since the April 2023 highs, and the company having long-term secular drivers like luxury auto growth, Porsche AG could be a “compelling name to own – possibly over a 3-5 year time horizon.”
A View From the Bears: However, RBC remains cautious, highlighting near-term factors such as declining China sales and US tariff headwinds.
Elsewhere, Porsche AG was downgraded to Underperform from Neutral by BofA in June, with analysts at the bank believing the stock will be a relative underperformer due to its slowing sales growth.
Barclays is also cautious on Porsche AG, having downgraded the stock to Equal Weight from Overweight in May. The bank cited the company’s Q1 report and “yet another profit warning” due to weaker demand and restructuring as the reasons for the downgrade.
Finally, in February, Berenberg cut Porsche AG to Hold from Buy, citing a “deteriorating narrative” in China. They also highlighted the re-emerging trade tensions and the slowing momentum of electric vehicles. The firm said these headwinds have added to risks to a “still complex” supply chain.
Average Analyst Consensus 12-Month Price Target: EUR 45.84
Our View: Porsche AG maintains a commanding presence in the luxury performance automotive sector. However, there are key headwinds that have weighed on the share price in recent years. Potential investors should conduct thorough research before making an investment decision.
Who Should Buy Porsche AG Shares
A dividend-paying stock: The company’s consistent dividend policy could appeal to income-focused investors.
Strong brand equity and a global market presence: Porsche AG’s worldwide recognition and established customer base position it as a stable yet dynamic player in the auto industry.
