BAYERISCHE MOTOREN WERKE AG (BMW.DE) Stock Fundamental Analysis
FRA:BMW - Deutsche Boerse Ag - DE0005190003 - Common Stock - Currency: EUR
Taking everything into account, BMW scores 4 out of 10 in our fundamental rating. BMW was compared to 32 industry peers in the Automobiles industry. While BMW is still in line with the averages on profitability rating, there are concerns on its financial health. BMW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BMW was profitable.
BMW had a positive operating cash flow in the past year.
BMW had positive earnings in each of the past 5 years.
BMW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMW has a Return On Assets of 3.12%. This is comparable to the rest of the industry: BMW outperforms 50.00% of its industry peers.
BMW has a Return On Equity of 9.02%. This is in the lower half of the industry: BMW underperforms 61.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.14%, BMW is in line with its industry, outperforming 50.00% of the companies in the same industry.
BMW had an Average Return On Invested Capital over the past 3 years of 7.08%. This is below the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.02% | ||
| ROIC | 6.14% |
ROA(3y)5.72%
ROA(5y)4.21%
ROE(3y)16.61%
ROE(5y)12.87%
ROIC(3y)7.08%
ROIC(5y)5.52%
1.3 Margins
BMW's Profit Margin of 5.49% is in line compared to the rest of the industry. BMW outperforms 55.88% of its industry peers.
BMW's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 9.43%, BMW is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
BMW's Operating Margin has improved in the last couple of years.
BMW's Gross Margin of 17.01% is on the low side compared to the rest of the industry. BMW is outperformed by 79.41% of its industry peers.
BMW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.43% | ||
| PM (TTM) | 5.49% | ||
| GM | 17.01% |
OM growth 3Y34.07%
OM growth 5Y4.93%
PM growth 3Y23.94%
PM growth 5Y0.17%
GM growth 3Y11.64%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMW is creating some value.
The number of shares outstanding for BMW has been reduced compared to 1 year ago.
BMW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BMW has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that BMW is in the distress zone and has some risk of bankruptcy.
BMW has a Altman-Z score (1.46) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.67 indicates that BMW is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.67, BMW is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC1.43
WACC4.3%
2.3 Liquidity
BMW has a Current Ratio of 1.10. This is a normal value and indicates that BMW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, BMW is doing worse than 73.53% of the companies in the same industry.
BMW has a Quick Ratio of 1.10. This is a bad value and indicates that BMW is not financially healthy enough and could expect problems in meeting its short term obligations.
BMW has a worse Quick ratio (0.78) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
BMW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.10%.
BMW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.53% yearly.
The Revenue has decreased by -2.05% in the past year.
BMW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.93% yearly.
EPS 1Y (TTM)-25.1%
EPS 3Y45.56%
EPS 5Y10.53%
EPS Q2Q%-84.76%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y16.25%
Revenue growth 5Y9.93%
Sales Q2Q%-15.74%
3.2 Future
The Earnings Per Share is expected to decrease by -0.84% on average over the next years.
Based on estimates for the next years, BMW will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y-28.76%
EPS Next 2Y-13.72%
EPS Next 3Y-7.76%
EPS Next 5Y-0.84%
Revenue Next Year-4.07%
Revenue Next 2Y-0.96%
Revenue Next 3Y0.01%
Revenue Next 5Y1.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.44, the valuation of BMW can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BMW indicates a somewhat cheap valuation: BMW is cheaper than 70.59% of the companies listed in the same industry.
BMW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 6.36, the valuation of BMW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMW indicates a somewhat cheap valuation: BMW is cheaper than 67.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BMW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.36 |
4.2 Price Multiples
BMW's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
BMW's earnings are expected to decrease with -7.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-13.72%
EPS Next 3Y-7.76%
5. Dividend
5.1 Amount
BMW has a Yearly Dividend Yield of 6.90%, which is a nice return.
BMW's Dividend Yield is a higher than the industry average which is at 6.74.
Compared to an average S&P500 Dividend Yield of 2.33, BMW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
5.2 History
On average, the dividend of BMW grows each year by 22.01%, which is quite nice.
Dividend Growth(5Y)22.01%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
84.53% of the earnings are spent on dividend by BMW. This is not a sustainable payout ratio.
The Dividend Rate of BMW has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP84.53%
EPS Next 2Y-13.72%
EPS Next 3Y-7.76%
FRA:BMW (3/7/2025, 7:00:00 PM)
83.62
-3.36 (-3.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners22.17%
Inst Owner ChangeN/A
Ins Owners48.56%
Ins Owner ChangeN/A
Market Cap53.41B
Analysts72.5
Price Target88.59 (5.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
Yearly Dividend10.81
Dividend Growth(5Y)22.01%
DP84.53%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.79%
Min EPS beat(2)-57.28%
Max EPS beat(2)-2.31%
EPS beat(4)1
Avg EPS beat(4)-17.57%
Min EPS beat(4)-57.28%
Max EPS beat(4)2.37%
EPS beat(8)2
Avg EPS beat(8)-9.92%
EPS beat(12)6
Avg EPS beat(12)-3.11%
EPS beat(16)9
Avg EPS beat(16)2.8%
Revenue beat(2)0
Avg Revenue beat(2)-6.16%
Min Revenue beat(2)-7.45%
Max Revenue beat(2)-4.87%
Revenue beat(4)1
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-7.45%
Max Revenue beat(4)3.18%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)0.26%
PT rev (3m)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.54%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-7.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.36 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 9.65 | ||
| P/B | 0.59 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)12.98
EY15.52%
EPS(NY)13.15
Fwd EY15.73%
FCF(TTM)-11.04
FCFYN/A
OCF(TTM)8.66
OCFY10.36%
SpS233.17
BVpS142.04
TBVpS111.18
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.02% | ||
| ROCE | 8.17% | ||
| ROIC | 6.14% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 8.03% | ||
| OM | 9.43% | ||
| PM (TTM) | 5.49% | ||
| GM | 17.01% | ||
| FCFM | N/A |
ROA(3y)5.72%
ROA(5y)4.21%
ROE(3y)16.61%
ROE(5y)12.87%
ROIC(3y)7.08%
ROIC(5y)5.52%
ROICexc(3y)8.18%
ROICexc(5y)6.36%
ROICexgc(3y)9.41%
ROICexgc(5y)7.25%
ROCE(3y)9.56%
ROCE(5y)7.46%
ROICexcg growth 3Y50.97%
ROICexcg growth 5Y12.6%
ROICexc growth 3Y48.71%
ROICexc growth 5Y11.39%
OM growth 3Y34.07%
OM growth 5Y4.93%
PM growth 3Y23.94%
PM growth 5Y0.17%
GM growth 3Y11.64%
GM growth 5Y-0.11%
F-Score2
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 144.06% | ||
| Cap/Sales | 8.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.46 |
F-Score2
WACC4.3%
ROIC/WACC1.43
Cap/Depr(3y)109.6%
Cap/Depr(5y)108.74%
Cap/Sales(3y)6.43%
Cap/Sales(5y)6.43%
Profit Quality(3y)71.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.1%
EPS 3Y45.56%
EPS 5Y10.53%
EPS Q2Q%-84.76%
EPS Next Y-28.76%
EPS Next 2Y-13.72%
EPS Next 3Y-7.76%
EPS Next 5Y-0.84%
Revenue 1Y (TTM)-2.05%
Revenue growth 3Y16.25%
Revenue growth 5Y9.93%
Sales Q2Q%-15.74%
Revenue Next Year-4.07%
Revenue Next 2Y-0.96%
Revenue Next 3Y0.01%
Revenue Next 5Y1.29%
EBIT growth 1Y-20.1%
EBIT growth 3Y55.85%
EBIT growth 5Y15.36%
EBIT Next Year24.63%
EBIT Next 3Y11.64%
EBIT Next 5Y4.85%
FCF growth 1Y-154.63%
FCF growth 3Y-1.79%
FCF growth 5YN/A
OCF growth 1Y-73.29%
OCF growth 3Y9.97%
OCF growth 5Y28.44%