Bayerische Motoren Werke (BMW3) AI Stock Analysis

• Market Cap: €47.64B
• Dividend Yield: 5.99%
• Average Volume (3M): 89.38K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.15
• Revenue Growth: -10.13%
• EPS Growth: -37.26%
• Country: DE
• Employees: 159,104
• Sector: Industrials
• Sector Strength: 93
• Industry: Auto - Manufacturers
• EPS (TTM): 3.38
• Shares Outstanding: 58,920,406
• 10 Day Avg. Volume: 121,309
• 30 Day Avg. Volume: 89,380
• PEG Ratio: -0.82
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: €81.00 ▲(12.03%Upside)

BMW's overall score reflects a balanced view of its financial performance, technical analysis, and valuation. The company's strong valuation due to a low P/E ratio and high dividend yield positively impacts the score. However, recent financial pressures, such as declining margins and negative free cash flow, present challenges. The technical indicators suggest moderate upward momentum, although caution is advised due to potential overbought conditions.

Bayerische Motoren Werke Business Overview & Revenue Model

Company Description

Bayerische 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 Money

BMW generates revenue through several key streams. Primarily, the company makes money from the sale of automobiles and motorcycles under its three main brands: BMW, MINI, and Rolls-Royce. These sales include new vehicles as well as certified pre-owned models. Additionally, BMW offers a range of financial services, including leasing, financing, and insurance products, which provide another significant source of income. The company also earns from aftersales services such as maintenance, repairs, and the sale of spare parts and accessories. Strategic partnerships and collaborations with technology firms and other automotive companies further enhance BMW's revenue, allowing it to integrate cutting-edge technology into its vehicles and expand its market reach.

Bayerische Motoren Werke Financial Statement Overview

Summary

Bayerische Motoren Werke exhibits strong revenue and profit margins. However, recent declines in margins and negative free cash flow in 2024 indicate potential challenges. The moderate debt-to-equity ratio suggests manageable leverage, but rising debt levels and declining return on equity may pose risks. Overall, it remains a solid player but needs to address recent financial pressures.

Income Statement

Bayerische Motoren Werke showed a fluctuating revenue trend, with a recent decline in 2024 after a peak in 2023. Despite this, the gross and net profit margins have remained relatively strong, indicating good cost management. However, the net profit margin has decreased from previous years, suggesting potential pressure on profitability. The EBIT and EBITDA margins have also seen a decline, which could indicate reduced operating efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, which suggests manageable leverage. However, the increase in total debt over recent years could pose a risk if not managed carefully. The return on equity has been decreasing, which may indicate challenges in generating profits from shareholders' equity. The equity ratio is stable, reflecting a solid equity base relative to total assets, which contributes to financial stability.

Cash Flow

The cash flow statement shows a concerning trend with negative free cash flow in 2024, following positive free cash flow in previous years. The operating cash flow to net income ratio is positive, indicating the company can generate cash from operations relative to its net income. However, the decline in free cash flow suggests potential issues in managing capital expenditures and investments effectively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
139.52B	142.38B	155.50B	142.61B	111.24B	98.99B
	Gross Profit
21.83B	22.89B	29.69B	24.57B	21.99B	13.58B
	EBIT
10.38B	11.60B	18.48B	23.96B	16.38B	5.65B
	EBITDA
20.39B	20.16B	26.73B	32.39B	21.25B	10.67B
	Net Income Common Stockholders
6.60B	7.29B	11.29B	17.94B	12.38B	3.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.89B	19.29B	17.33B	22.03B	21.81B	18.64B
	Total Assets
265.39B	267.73B	250.89B	246.93B	229.53B	216.66B
	Total Debt
0.00	111.26B	71.55B	71.56B	83.73B	87.58B
	Net Debt
-19.68B	91.97B	54.22B	54.69B	67.72B	74.05B
	Total Liabilities
168.90B	172.73B	157.97B	155.64B	154.40B	155.14B
	Stockholders Equity
93.77B	92.31B	89.60B	87.13B	74.37B	60.89B
Cash Flow		Free Cash Flow
-4.31B	-4.64B	6.47B	14.47B	9.28B	7.10B
	Operating Cash Flow
8.35B	7.57B	17.36B	23.52B	15.90B	13.25B
	Investing Cash Flow
-11.55B	-11.37B	-9.55B	-4.77B	-6.39B	-3.64B
	Financing Cash Flow
6.19B	5.77B	-6.67B	-17.98B	-6.74B	-8.25B

Bayerische Motoren Werke Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BMW3, the sentiment is Positive. The current price of 72.3 is below the 20-day moving average (MA) of 73.34, above the 50-day MA of 68.26, and above the 200-day MA of 68.28, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BMW3.

Bayerische Motoren Werke Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMW3	76 Outperform	€47.64B	6.87	7.09%	5.99%	-10.13%	-37.26%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
MBGAF		$56.62B	6.12	9.32%	7.83%	―	―
0JHU		€10.51B	2.07		5.57%	―	―
0P6O		€47.17B	5.03	5.52%	6.83%	―	―
0P6N		€47.31B	5.11	5.52%	6.66%	―	―
DTG	73 Outperform	€29.65B	10.26	12.77%	5.09%	-4.81%	-22.95%

Bayerische Motoren Werke Corporate Events

BMW AG Advances Share Buy-Back Programme with Latest Acquisitions

BMW AG announced an interim report on its Share Buy-Back Programme for 2023/2025, revealing the acquisition of 306,676 ordinary shares and 67,488 preferred shares from January 27 to February 2, 2025. This strategic move is part of BMW’s ongoing efforts to enhance shareholder value and optimize capital structure, reflecting its strong market positioning and commitment to its stakeholders.