Bayerische Motoren Werke Aktiengesellschaft (BMW) AI Stock Analysis

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Bayerische Motoren Werke Aktiengesellschaft

(XETRA:BMW)

Rating:73Outperform

Price Target:

€97.00

▲(16.08% Upside)

BMW's overall stock score of 73 reflects a combination of solid technical analysis and attractive valuation, despite financial performance challenges. The stock shows bullish momentum with positive technical indicators and is trading above key moving averages. The low P/E ratio and high dividend yield enhance its appeal. However, growth and cash flow concerns, along with increased leverage, weigh on the financial performance score.

Bayerische Motoren Werke Aktiengesellschaft (BMW) vs. iShares MSCI Germany ETF (EWG)

Market Cap

$49.74B

Dividend Yield5.13%

Average Volume (3M)857.79K

Price to Earnings (P/E)9.0

Beta (1Y)1.29

Revenue Growth-11.92%

EPS Growth-43.64%

CountryDE

Employees159,104

SectorConsumer Cyclical

Sector Strength79

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)2.85

Shares Outstanding561,134,950

10 Day Avg. Volume959,321

30 Day Avg. Volume857,793

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.75

Enterprise Value/Revenue1.00

Enterprise Value/Gross Profit6.59

Enterprise Value/Ebitda7.14

Forecast

1Y Price Target

$86.91

Price Target Upside4.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

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:Jul 31, 2025

(Q3-2024)

% Change Since: |

Next Earnings Date:Nov 05, 2025

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 statements reflect solid profitability with effective cost management, as evidenced by a gross profit margin of 15.20% and a net profit margin of 4.20%. However, the company faces growth challenges with a revenue decline of -2.16% and cash flow issues, including a negative free cash flow of -2.95 billion. The balance sheet shows increased leverage with a debt-to-equity ratio of 1.16, posing potential risks.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

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

Technical Analysis Sentiment

Neutral

Last Price83.56

Price Trends

50DMA

86.58

Negative

100DMA

81.12

Positive

200DMA

77.43

Positive

Market Momentum

MACD

-0.71

Positive

RSI

35.66

Neutral

STOCH

15.50

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BMW, the sentiment is Neutral. The current price of 83.56 is below the 20-day moving average (MA) of 88.35, below the 50-day MA of 86.58, and above the 200-day MA of 77.43, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 15.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:BMW.

Bayerische Motoren Werke Aktiengesellschaft Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMW	73 Outperform	$49.74B	9.03	6.06%	5.13%	-11.92%	-43.64%
Sector *	61 Neutral	$18.38B	12.79	-2.56%	3.03%	1.52%	-15.83%
MBGAF	―	$58.37B	8.10	7.24%	8.03%	―	―
0JHU	―	€11.11B	2.05		3.47%	―	―
0P6O	―	€51.49B	6.09	5.01%	―	―	―
0P6N	―	€51.24B	6.18	5.01%	―	―	―
CTTAF	―	$16.84B	10.10	14.83%	3.54%	―	―

* Consumer Cyclical Sector Average

Performance Comparison

DE:BMW

Bayerische Motoren Werke Aktiengesellschaft

83.56

14.83

21.58%

MBGAF

Mercedes-Benz Group

60.67

-2.40

-3.81%

GB:0JHU

Porsche Automobil Holding

36.26

-1.32

-3.51%

GB:0P6O

Volkswagen

101.42

15.97

18.69%

GB:0P6N

Volkswagen

103.00

11.52

12.59%

CTTAF

Continental Aktiengesellschaft

89.16

33.67

60.68%

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.Date of analysis: Aug 11, 2025