Porsche Automobil Holding: Yield Has Been Good, Returns Less So
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Wolf ReportInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryPorsche Automobil Holding (POAHY) is rated a 'Buy', reflecting attractive risk/reward despite recent underperformance.Recent results show negative EBIT and ongoing China weakness, but management expects profitability recovery by 2026, supported by cost reductions and strategic volume management.New CEO Michael Leiters signals a more selective EV approach, focusing on legacy powertrains and higher-margin, optioned vehicles to protect brand value.Valuation remains compelling versus peers, but material upside may require patience as Porsche navigates tariff risks, China exposure, and evolving global demand. Brandon Woyshnis/iStock Editorial via Getty Images Automotive stocks haven't been winners, barring extremely cheap-level investments, for some time now. Here on SA, I cover German and French automotive stocks primarily, while sometimes also including Japanese as well. My coverage of Porsche (POAHY) is a fewThis article was written byWolf Report34.51K FollowersFollowWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Analyst’s Disclosure:I/we have a beneficial long position in the shares of POAHY, BMWKY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a US-based CFA engaged by the reader. It may be structured as such, but it is not financial advice. Investors/readers are required and expected to do their own due diligence and research prior to any investment. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.