BAYERISCHE MOTOREN WERKE AG (BMW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BMW - DE0005190003 - Common Stock
87 EUR
+0.2 (+0.23%)
We assign a fundamental rating of 5 out of 10 to BMW. BMW was compared to 32 industry peers in the Automobiles industry. While BMW belongs to the best of the industry regarding profitability, there are concerns on its financial health. BMW is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- BMW had positive earnings in the past year.
- In the past year BMW had a positive cash flow from operations.
- BMW had positive earnings in each of the past 5 years.
- In the past 5 years BMW always reported a positive cash flow from operatings.
1.2 Ratios
- BMW's Return On Assets of 2.68% is fine compared to the rest of the industry. BMW outperforms 71.88% of its industry peers.
- The Return On Equity of BMW (7.52%) is better than 71.88% of its industry peers.
- BMW has a better Return On Invested Capital (3.89%) than 71.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BMW is in line with the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 7.52% | ||
| ROIC | 3.89% |
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
- Looking at the Profit Margin, with a value of 5.15%, BMW belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of BMW has grown nicely.
- The Operating Margin of BMW (7.29%) is better than 84.38% of its industry peers.
- BMW's Operating Margin has improved in the last couple of years.
- BMW has a Gross Margin of 15.47%. This is in the lower half of the industry: BMW underperforms 62.50% of its industry peers.
- In the last couple of years the Gross Margin of BMW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.29% | ||
| PM (TTM) | 5.15% | ||
| GM | 15.47% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMW is still creating some value.
- Compared to 1 year ago, BMW has less shares outstanding
- The number of shares outstanding for BMW has been reduced compared to 5 years ago.
- The debt/assets ratio for BMW is higher compared to a year ago.
2.2 Solvency
- BMW has an Altman-Z score of 1.39. This is a bad value and indicates that BMW is not financially healthy and even has some risk of bankruptcy.
- BMW has a better Altman-Z score (1.39) than 75.00% of its industry peers.
- The Debt to FCF ratio of BMW is 2505.77, which is on the high side as it means it would take BMW, 2505.77 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 2505.77, BMW perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
- BMW has a Debt/Equity ratio of 0.72. This is a neutral value indicating BMW is somewhat dependend on debt financing.
- BMW's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. BMW outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2505.77 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.92
WACC4.25%
2.3 Liquidity
- BMW has a Current Ratio of 1.14. This is a normal value and indicates that BMW is financially healthy and should not expect problems in meeting its short term obligations.
- BMW has a Current ratio (1.14) which is in line with its industry peers.
- A Quick Ratio of 0.86 indicates that BMW may have some problems paying its short term obligations.
- BMW has a Quick ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The earnings per share for BMW have decreased strongly by -12.33% 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.
- BMW shows a decrease in Revenue. In the last year, the revenue decreased by -8.40%.
- BMW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.44% yearly.
EPS 1Y (TTM)-12.33%
EPS 3Y-14.77%
EPS 5Y9.24%
EPS Q2Q%328.13%
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y8.58%
Revenue growth 5Y6.44%
Sales Q2Q%-0.28%
3.2 Future
- The Earnings Per Share is expected to grow by 6.29% on average over the next years.
- The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y-6.74%
EPS Next 2Y-1.38%
EPS Next 3Y3.11%
EPS Next 5Y6.29%
Revenue Next Year-6.04%
Revenue Next 2Y-1.75%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.46%
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
- A Price/Earnings ratio of 7.64 indicates a rather cheap valuation of BMW.
- Compared to the rest of the industry, the Price/Earnings ratio of BMW indicates a rather cheap valuation: BMW is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BMW to the average of the S&P500 Index (28.60), we can say BMW is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of BMW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BMW indicates a somewhat cheap valuation: BMW is cheaper than 68.75% of the companies listed in the same industry.
- BMW is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMW is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1245.94 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
- BMW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-1.38%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.89%, BMW is a good candidate for dividend investing.
- BMW's Dividend Yield is comparable with the industry average which is at 3.74.
- BMW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
- On average, the dividend of BMW grows each year by 16.27%, which is quite nice.
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 2Y-1.38%
EPS Next 3Y3.11%
BAYERISCHE MOTOREN WERKE AG / BMW.DE FAQ
What is the fundamental rating for BMW stock?
ChartMill assigns a fundamental rating of 5 / 10 to BMW.DE.
Can you provide the valuation status for BAYERISCHE MOTOREN WERKE AG?
ChartMill assigns a valuation rating of 6 / 10 to BAYERISCHE MOTOREN WERKE AG (BMW.DE). This can be considered as Fairly Valued.
What is the profitability of BMW stock?
BAYERISCHE MOTOREN WERKE AG (BMW.DE) has a profitability rating of 7 / 10.
What is the valuation of BAYERISCHE MOTOREN WERKE AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BAYERISCHE MOTOREN WERKE AG (BMW.DE) is 7.64 and the Price/Book (PB) ratio is 0.57.