BAYERISCHE MOTOREN WERKE AG (BMW.DE) Stock Fundamental Analysis
FRA:BMW - Deutsche Boerse Ag - DE0005190003 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to BMW. BMW was compared to 28 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
BMW had positive earnings in the past year.
BMW had a positive operating cash flow in the past year.
Each year in the past 5 years BMW has been profitable.
BMW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMW's Return On Assets of 2.49% is in line compared to the rest of the industry. BMW outperforms 42.86% of its industry peers.
With a Return On Equity value of 7.03%, BMW perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Invested Capital value of 4.06%, BMW perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BMW is in line with the industry average of 6.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.03% | ||
| ROIC | 4.06% |
ROA(3y)4.83%
ROA(5y)4.33%
ROE(3y)13.7%
ROE(5y)12.79%
ROIC(3y)6.06%
ROIC(5y)5.34%
1.3 Margins
BMW has a better Profit Margin (4.73%) than 64.29% of its industry peers.
BMW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.60%, BMW is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Operating Margin of BMW has grown nicely.
Looking at the Gross Margin, with a value of 15.65%, BMW is doing worse than 71.43% of the companies in the same industry.
BMW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 4.73% | ||
| GM | 15.65% |
OM growth 3Y-12.91%
OM growth 5Y1.88%
PM growth 3Y-22.81%
PM growth 5Y1.66%
GM growth 3Y-6.65%
GM growth 5Y-1.49%
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.
Compared to 1 year ago, BMW has less shares outstanding
BMW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BMW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that BMW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, BMW is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that BMW is somewhat dependend on debt financing.
BMW has a Debt to Equity ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC1.02
WACC3.97%
2.3 Liquidity
A Current Ratio of 1.18 indicates that BMW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, BMW perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BMW has a Quick Ratio of 1.18. This is a bad value and indicates that BMW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, BMW is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for BMW have decreased strongly by -36.95% in the last year.
BMW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.24% yearly.
The Revenue for BMW has decreased by -10.13% in the past year. This is quite bad
Measured over the past years, BMW shows a small growth in Revenue. The Revenue has been growing by 6.44% on average per year.
EPS 1Y (TTM)-36.95%
EPS 3Y-14.77%
EPS 5Y9.24%
EPS Q2Q%-23.53%
Revenue 1Y (TTM)-10.13%
Revenue growth 3Y8.58%
Revenue growth 5Y6.44%
Sales Q2Q%-7.8%
3.2 Future
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
Based on estimates for the next years, BMW will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y-1.39%
EPS Next 2Y2.58%
EPS Next 3Y5.14%
EPS Next 5Y9.32%
Revenue Next Year-2.38%
Revenue Next 2Y0.04%
Revenue Next 3Y0.84%
Revenue Next 5Y1.65%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 7.47, 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 67.86% 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 27.21.
Based on the Price/Forward Earnings ratio of 6.47, the valuation of BMW can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as BMW.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, BMW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 6.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMW is valued a bit more expensive than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The decent profitability rating of BMW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y2.58%
EPS Next 3Y5.14%
5. Dividend
5.1 Amount
BMW has a Yearly Dividend Yield of 5.89%, which is a nice return.
Compared to an average industry Dividend Yield of 5.94, BMW pays a bit more dividend than its industry peers.
BMW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
The dividend of BMW is nicely growing with an annual growth rate of 16.27%!
Dividend Growth(5Y)16.27%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
BMW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y2.58%
EPS Next 3Y5.14%
FRA:BMW (7/2/2025, 5:36:15 PM)
79.08
+3.78 (+5.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners19.26%
Inst Owner ChangeN/A
Ins Owners48.56%
Ins Owner ChangeN/A
Market Cap50.51B
Analysts71.33
Price Target87.01 (10.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
Yearly Dividend7.63
Dividend Growth(5Y)16.27%
DPN/A
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.78%
Min EPS beat(2)-3.53%
Max EPS beat(2)-2.04%
EPS beat(4)0
Avg EPS beat(4)-16.29%
Min EPS beat(4)-57.28%
Max EPS beat(4)-2.04%
EPS beat(8)1
Avg EPS beat(8)-11.06%
EPS beat(12)4
Avg EPS beat(12)-4.97%
EPS beat(16)8
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-8.56%
Min Revenue beat(2)-12.81%
Max Revenue beat(2)-4.31%
Revenue beat(4)0
Avg Revenue beat(4)-7.36%
Min Revenue beat(4)-12.81%
Max Revenue beat(4)-4.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.34%
Revenue beat(12)6
Avg Revenue beat(12)-1.11%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)2.27%
PT rev (3m)-2.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 6.47 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 6.05 | ||
| P/B | 0.54 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)10.58
EY13.38%
EPS(NY)12.23
Fwd EY15.46%
FCF(TTM)-6.74
FCFYN/A
OCF(TTM)13.07
OCFY16.53%
SpS218.44
BVpS146.81
TBVpS115.64
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.03% | ||
| ROCE | 5.75% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 5.25% | ||
| OM | 7.6% | ||
| PM (TTM) | 4.73% | ||
| GM | 15.65% | ||
| FCFM | N/A |
ROA(3y)4.83%
ROA(5y)4.33%
ROE(3y)13.7%
ROE(5y)12.79%
ROIC(3y)6.06%
ROIC(5y)5.34%
ROICexc(3y)6.95%
ROICexc(5y)6.15%
ROICexgc(3y)8.08%
ROICexgc(5y)7.04%
ROCE(3y)8.74%
ROCE(5y)7.68%
ROICexcg growth 3Y-10.71%
ROICexcg growth 5Y4.54%
ROICexc growth 3Y-11.6%
ROICexc growth 5Y3.73%
OM growth 3Y-12.91%
OM growth 5Y1.88%
PM growth 3Y-22.81%
PM growth 5Y1.66%
GM growth 3Y-6.65%
GM growth 5Y-1.49%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 146.98% | ||
| Cap/Sales | 9.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.39 |
F-Score4
WACC3.97%
ROIC/WACC1.02
Cap/Depr(3y)122.67%
Cap/Depr(5y)114.02%
Cap/Sales(3y)7.31%
Cap/Sales(5y)6.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.95%
EPS 3Y-14.77%
EPS 5Y9.24%
EPS Q2Q%-23.53%
EPS Next Y-1.39%
EPS Next 2Y2.58%
EPS Next 3Y5.14%
EPS Next 5Y9.32%
Revenue 1Y (TTM)-10.13%
Revenue growth 3Y8.58%
Revenue growth 5Y6.44%
Sales Q2Q%-7.8%
Revenue Next Year-2.38%
Revenue Next 2Y0.04%
Revenue Next 3Y0.84%
Revenue Next 5Y1.65%
EBIT growth 1Y-38.25%
EBIT growth 3Y-5.44%
EBIT growth 5Y8.44%
EBIT Next Year64.75%
EBIT Next 3Y23.06%
EBIT Next 5Y11.51%
FCF growth 1Y-124.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-69.08%
OCF growth 3Y-21.95%
OCF growth 5Y16.15%