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Bayerische Motoren Werke Aktiengesellschaft (DE:BMW)
XETRA:BMW
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Bayerische Motoren Werke Aktiengesellschaft
(XETRA:BMW)
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Rating:75Outperform
Price Target:
€100.00
▲(12.13% Upside)
BMW's overall stock score of 75 reflects a combination of solid valuation and positive technical momentum. The low P/E ratio and high dividend yield make it attractive from a valuation perspective, while technical indicators suggest bullish momentum. However, financial performance is stable but challenged by declining revenue growth and cash flow issues, which slightly temper the overall score.
Positive Factors
Profit Margins
Strong profit margins indicate effective cost management and operational efficiency, providing a buffer against market volatility.
Product Range
A diverse product range, especially in EVs, positions BMW well for growth in the sustainable transportation market.
Financial Services
The financial services segment supports revenue stability and customer retention, providing a competitive edge in the automotive industry.
Negative Factors
Revenue Growth Decline
Declining revenue growth may indicate market saturation or competitive pressures, potentially impacting long-term expansion.
Negative Free Cash Flow
Negative free cash flow limits BMW's ability to invest in growth opportunities and may strain financial flexibility.
Rising Debt Levels
Increased reliance on debt financing can elevate financial risk and limit strategic options during economic downturns.
Bayerische Motoren Werke Aktiengesellschaft (BMW) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$52.78B
Dividend Yield4.82%
Average Volume (3M)818.92K
Price to Earnings (P/E)7.9
Beta (1Y)1.24
Revenue Growth-8.40%
EPS Growth-11.54%
CountryDE
Employees159,104
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.74
Shares Outstanding561,134,950
10 Day Avg. Volume672,278
30 Day Avg. Volume818,918
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)0.49
Price to Sales (P/S)0.32
P/FCF Ratio-9.71
Enterprise Value/Market Cap2.71
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit6.89
Enterprise Value/Ebitda7.46
Forecast
1Y Price Target
$90.38Price Target Upside1.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bayerische Motoren Werke Aktiengesellschaft Business Overview & Revenue Model
Company DescriptionBayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, develops, manufactures, and sells automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment is involved in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. This segment sells its products through independent and authorized dealerships. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand name, as well as spare parts and accessories. The Financial Services segment engages in automobile leasing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company was founded in 1916 and is based in Munich, Germany.
How the Company Makes MoneyBMW generates revenue primarily through the sale of its vehicles, which includes passenger cars and motorcycles. The company has several key revenue streams: the sale of new cars, financing services, and aftersales services such as maintenance and repairs. Additionally, BMW has a strong focus on electric vehicles (EVs) and offers a range of models, tapping into the growing market for sustainable transportation. The company also benefits from significant partnerships with technology firms to enhance its connectivity and autonomous driving capabilities, further boosting its earnings. Furthermore, BMW's financial services segment, which includes leasing and financing options for customers, contributes to its revenue and enhances customer loyalty.
Bayerische Motoren Werke Aktiengesellschaft Earnings Call Summary
Earnings Call Date:Nov 06, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with strong performance in the U.S. and strategic investments in manufacturing, offset by financial challenges and market weaknesses in China. The company's focus on BEV growth and expansion in Europe are positive, but these are weighed down by ongoing financial and operational challenges.Q3-2024 Updates
Positive Updates
Strong U.S. Market Performance
BMW sold over 290,000 vehicles in the U.S. by October, marking a growth of nearly 7,000 units. In October alone, sales grew by over 20% year-over-year, with more than 36,750 cars sold.
Focus on BEV Growth in China
BMW achieved a 15% BEV share in the Chinese market and plans to increase local production with the launch of the fully electric MINI.
Strategic Investments in U.S. Manufacturing
BMW is investing EUR 1.7 billion to electrify its Spartanburg plant, strengthening its manufacturing footprint in the U.S.
Expansion in Europe
BMW sold 620,000 vehicles in Europe, a growth of more than 7%, and opened a new plant in Hungary with competitive conditions.
Negative Updates
Q3 Financial Challenges
BMW faced a decline in sales and revenue in Q3 due to IBS provisioning, impacting profitability. The financial results were also negatively affected by interest rate evaluations and standalone derivatives.
China Market Weakness
The automotive sector in China showed signs of weakness, with challenges in dealer profitability and liquidity. Some dealers in China reported financial issues, affecting BMW's distribution network.
Warranty Provision Impact
Significant warranty costs related to IBS, EGR, and airbags have kept warranty provisions at the same level as the previous year, affecting the company's financial stability.
Company Guidance
During the BMW Q3 2024 earnings call, the company provided guidance indicating an expected auto margin between 5% and 7% for Q4, aiming for a year-to-date margin of 6% to 7%, aligning with their strategic target of 8% to 10% EBIT margin. The executives discussed the impact of a high 3-digit million euro warranty provision and the shortfall in sales due to reduced operations, which contributed to decreased revenue and profit in Q3. Furthermore, BMW reported on its robust U.S. market performance, selling over 290,000 vehicles year-to-date with a 20% growth in October sales alone. The company also detailed its manufacturing footprint in the U.S., producing 65% of its local sales at the Spartanburg plant, and highlighted investments to electrify the facility. In China, BMW emphasized its flexible powertrain strategy to navigate market dynamics, with a current 15% BEV share and plans to introduce the Neue Klasse architecture by 2030. The executives also addressed financial results impacted by interest rate fluctuations and derivative valuations, with expectations for potential reversals depending on future rate changes.Bayerische Motoren Werke Aktiengesellschaft Financial Statement Overview
Summary
BMW's financial performance is stable with solid profitability, evidenced by a gross profit margin of 15.20% and a net profit margin of 4.20%. However, challenges are present with a decline in revenue growth and negative free cash flow, indicating cash management issues.Income Statement
BMW's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -2.16%, reflecting a challenging market environment. However, the company maintains a solid gross profit margin of 15.20% and a net profit margin of 4.20%, showcasing its ability to manage costs effectively. EBIT and EBITDA margins are also healthy at 6.58% and 14.03% respectively, although they have decreased compared to previous years. Overall, BMW demonstrates stable profitability but faces growth challenges.72
Positive
Balance Sheet
BMW's balance sheet reveals a moderate level of leverage with a debt-to-equity ratio of 1.16 in the TTM period, indicating a reliance on debt financing. The return on equity stands at 6.22%, which is lower than previous years, suggesting reduced efficiency in generating returns from equity. The equity ratio is stable, reflecting a balanced asset structure. While the company maintains financial stability, the increased debt levels pose potential risks.68
Positive
Cash Flow
The cash flow statement highlights some concerns for BMW. The TTM data shows a negative free cash flow of -2.95 billion, with a significant decline in free cash flow growth at -31.54%. The operating cash flow to net income ratio is 0.12, indicating limited cash generation relative to net income. The negative free cash flow to net income ratio of -0.31 further underscores cash flow challenges. While operating cash flow remains positive, the overall cash flow position requires attention.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 136.51B | 142.38B | 155.50B | 142.61B | 111.24B | 98.99B |
| Gross Profit | 20.75B | 30.54B | 29.69B | 24.57B | 21.99B | 13.58B |
| EBITDA | 19.16B | 20.16B | 26.73B | 32.39B | 21.25B | 10.67B |
| Net Income | 5.74B | 7.29B | 11.29B | 17.94B | 12.38B | 3.77B |
Balance Sheet | ||||||
| Total Assets | 259.71B | 267.73B | 250.89B | 246.93B | 229.53B | 216.66B |
| Cash, Cash Equivalents and Short-Term Investments | 21.11B | 21.85B | 17.33B | 22.03B | 21.81B | 18.64B |
| Total Debt | 106.34B | 85.50B | 71.55B | 71.56B | 83.73B | 87.58B |
| Total Liabilities | 165.76B | 172.73B | 157.97B | 155.64B | 154.40B | 155.14B |
| Stockholders Equity | 91.79B | 92.31B | 89.60B | 87.13B | 74.37B | 60.89B |
Cash Flow | ||||||
| Free Cash Flow | -2.95B | -4.64B | 6.47B | 14.47B | 9.28B | 7.10B |
| Operating Cash Flow | 9.41B | 7.57B | 17.36B | 23.52B | 15.90B | 13.25B |
| Investing Cash Flow | -11.43B | -11.37B | -9.55B | -4.77B | -6.39B | -3.64B |
| Financing Cash Flow | 2.55B | 5.77B | -6.67B | -17.98B | -6.74B | -8.25B |
Bayerische Motoren Werke Aktiengesellschaft Technical Analysis
Positive
89.18
Price Trends
84.32
Positive
85.43
Positive
80.33
Positive
Market Momentum
1.38
Negative
62.49
Neutral
91.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BMW, the sentiment is Positive. The current price of 89.18 is above the 20-day moving average (MA) of 87.19, above the 50-day MA of 84.32, and above the 200-day MA of 80.33, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BMW.
Bayerische Motoren Werke Aktiengesellschaft Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | €46.08B | 6.87 | 4.00% | 6.18% | 0.49% | -45.70% | |
75 Outperform | $52.78B | 7.86 | 7.35% | 4.82% | -8.40% | -11.54% | |
74 Outperform | $57.03B | 9.14 | 6.56% | 7.46% | -7.08% | -38.11% | |
70 Outperform | €46.08B | 6.96 | 4.00% | 6.16% | 0.49% | -45.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $12.55B | 50.60 | -1.10% | 2.86% | -38.10% | -75.32% | |
55 Neutral | €10.62B | -0.49 | -45.93% | 5.08% | -39.68% | -659.81% |
* Consumer Cyclical Sector Average
DE:BMW
Bayerische Motoren Werke Aktiengesellschaft
89.18
19.58
28.13%
DE:MBG
Mercedes-Benz Group
57.65
8.84
18.10%
DE:PAH3
Porsche Automobil Holding
37.54
4.82
14.72%
DE:VOW3
Volkswagen
102.85
26.50
34.71%
DE:VOW
Volkswagen
103.80
24.12
30.27%
DE:CON
Continental Aktiengesellschaft
66.50
20.26
43.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.