Bayerische Motoren Werke (BMW3) AI Stock Analysis

• Market Cap: €54.01B
• Dividend Yield: 4.72%
• Average Volume (3M): 82.59K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.16
• Revenue Growth: -8.40%
• EPS Growth: -11.54%
• Country: DE
• Employees: 159,104
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Manufacturers
• EPS (TTM): 2.74
• Shares Outstanding: 54,675,507
• 10 Day Avg. Volume: 107,100
• 30 Day Avg. Volume: 82,586
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €88.00
• Price Target Upside: -2.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €96.00 ▲(6.02% Upside)

Bayerische Motoren Werke's stock is supported by strong technical indicators and an attractive valuation, with a low P/E ratio and high dividend yield. However, financial performance is a concern, with challenges in revenue growth and cash flow management. The stock's positive momentum and undervaluation provide a counterbalance to these financial challenges.

Positive Factors

Operational Efficiency

Despite revenue challenges, BMW's stable EBIT and strong EBITDA margins indicate effective cost management and operational efficiency, crucial for sustaining profitability in the long term.

Financial Services Revenue

The financial services segment offers a diversified revenue stream, enhancing BMW's resilience against fluctuations in vehicle sales and contributing to long-term financial stability.

Global Brand Presence

BMW's extensive global presence and dealership network facilitate market penetration and customer engagement, supporting sustained revenue generation and competitive positioning.

Negative Factors

Revenue Growth Challenges

The negative revenue growth indicates difficulties in maintaining sales momentum, which could impact long-term market share and profitability if not addressed.

Cash Flow Constraints

The decline in free cash flow growth highlights potential liquidity challenges, limiting BMW's ability to invest in growth opportunities and manage financial obligations effectively.

Declining Profit Margins

The reduction in profit margins suggests increased cost pressures and reduced pricing power, potentially affecting long-term profitability and competitive advantage.

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 multiple streams, primarily from the sale of vehicles, which includes both conventional internal combustion engine models and electric vehicles. The company also earns significant income from the sale of motorcycle units and parts. Additionally, BMW has a robust financial services segment that provides vehicle financing, leasing options, and insurance products to customers, contributing to its revenue. Partnerships with technology companies enhance BMW's capabilities in areas such as autonomous driving and connectivity, further driving sales. Moreover, the brand's strong global presence and extensive dealership network allow for effective distribution and customer engagement, boosting overall earnings.

Bayerische Motoren Werke Financial Statement Overview

Summary

Bayerische Motoren Werke faces challenges in revenue growth and profitability, as reflected in the income statement. The balance sheet remains stable with moderate leverage, but declining return on equity may concern investors. Cash flow constraints are evident, with significant declines in free cash flow growth, indicating potential liquidity issues. Overall, the company needs to address revenue growth and cash flow management to enhance financial performance.

Income Statement

Bayerische Motoren Werke's income statement shows a decline in revenue growth with a negative rate of -6.7% in the TTM period, indicating challenges in maintaining sales momentum. The gross profit margin has decreased to 15.2% from 21.4% in the previous year, reflecting pressure on cost management. Net profit margin also declined to 4.2%, suggesting reduced profitability. However, the company maintains a stable EBIT margin of 6.6% and a strong EBITDA margin of 14.0%, indicating operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.16 in the TTM period, indicating a balanced approach to leveraging. Return on equity stands at 6.2%, showing a decline from previous years, which may concern investors seeking high returns. The equity ratio is stable, suggesting a solid capital structure. Overall, the balance sheet indicates financial stability, though with some pressure on equity returns.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, with a rate of -101.5% in the TTM period, highlighting potential liquidity challenges. 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 constraints. These factors suggest a need for improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.41B	142.38B	155.50B	142.61B	111.24B	98.99B
Gross Profit	21.10B	30.54B	29.69B	24.57B	21.99B	13.58B
EBITDA	20.55B	20.16B	26.73B	32.39B	21.25B	10.67B
Net Income	7.02B	7.29B	11.29B	17.94B	12.38B	3.77B
Balance Sheet
Total Assets	261.97B	267.73B	250.89B	246.93B	229.53B	216.66B
Cash, Cash Equivalents and Short-Term Investments	19.26B	21.85B	17.33B	22.03B	21.81B	18.64B
Total Debt	107.75B	85.50B	71.55B	71.56B	83.73B	87.58B
Total Liabilities	166.41B	172.73B	157.97B	155.64B	154.40B	155.14B
Stockholders Equity	93.36B	92.31B	89.60B	87.13B	74.37B	60.89B
Cash Flow
Free Cash Flow	43.00M	-4.64B	6.47B	14.47B	9.28B	7.10B
Operating Cash Flow	11.43B	7.57B	17.36B	23.52B	15.90B	13.25B
Investing Cash Flow	-9.90B	-11.37B	-9.55B	-4.77B	-6.39B	-3.64B
Financing Cash Flow	22.00M	5.77B	-6.67B	-17.98B	-6.74B	-8.25B

Bayerische Motoren Werke Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 90.55 is above the 20-day moving average (MA) of 88.25, above the 50-day MA of 88.00, and above the 200-day MA of 78.96, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 63.60 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
MBG	77 Outperform	$58.69B	9.03	6.56%	7.25%	-7.08%	-38.11%
BMW3	72 Outperform	€54.01B	7.67	7.63%	4.72%	-8.40%	-11.54%
DTG	68 Neutral	€33.99B	15.27	10.04%	5.13%	-10.34%	-31.23%
VOW	58 Neutral	€53.20B	7.70	4.00%	6.03%	0.49%	-45.70%
PAH3	57 Neutral	€11.18B	-0.53	-45.93%	4.81%	-39.68%	-659.81%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
VOW3	54 Neutral	€53.20B	7.70	4.00%	6.13%	0.49%	-45.70%