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Bayerische Motoren Werke AG BMW

Morningstar Rating
€106.96 +0.80 (0.75%)
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Company Report

BMW Earnings: Strong Fourth Quarter Overshadowed by Heightened Near-Term Investments

Narrow-moat BMW capped off fiscal 2023 with a strong fourth quarter, reporting year-over-year sales and automotive operating income growth of 8.7% and 8.2%, respectively. However, the stock slipped during intraday trading as management stated that fiscal 2024 would be a year of heightened investment, expecting peak capital expenditures with respect to electrical vehicle technology. Nonetheless, we remain confident in BMW’s product portfolio and believe the company should be able to generate high-single-digit margins despite the significant investment ramp. As such, we reiterate our EUR 163 fair value estimate.

Price vs Fair Value

BMW is trading at a 35% discount.
Price
€106.24
Fair Value
€752.00
Uncertainty
High
1-Star Price
€641.55
5-Star Price
€84.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

BMW possesses durable competitive advantages, given the strength and global recognition of the brands, technological leadership in powertrains, and ability to command premium pricing from consumers that regularly rate its vehicles as some of the best to own, resulting in excess returns.

Bears

BMW operates in the highly cyclical, capital-intensive automotive business, where overcapacity restricts pricing and constrains economic profits.

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News

Trading Information

Previous Close Price
€106.16
Day Range
€106.34107.18
52-Week Range
€86.80113.46
Bid/Ask
€106.86 / €0.00
Market Cap
€70.90 Bil
Volume/Avg
785,748 / 925,527

Key Statistics

Price/Earnings (Normalized)
6.08
Price/Sales
0.40
Dividend Yield (Trailing)
8.01%
Dividend Yield (Forward)
5.65%
Total Yield
9.82%

Company Profile

In addition to being one of the world's leading premium light-vehicle manufacturers, BMW Group produces BMW motorcycles and provides financial services. Premium light-vehicle brands include BMW, Mini, and ultraluxury brand Rolls-Royce. Operations include 31 production facilities in 15 countries, research and development facilities in 17 countries, and a sales network reaching over 140 countries. In 2022, worldwide sales volume roughly 2.4 million automobiles and about 216,000 motorcycles.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
154,950

Competitors

Valuation

Metric
BMW
MBGAF
F
Price/Earnings (Normalized)
6.085.436.43
Price/Book Value
0.760.841.22
Price/Sales
0.400.510.30
Price/Cash Flow
2.883.773.84
Price/Earnings
BMW
MBGAF
F

Financial Strength

Metric
BMW
MBGAF
F
Quick Ratio
0.730.901.01
Current Ratio
1.091.261.20
Interest Coverage
25.9929.082.82
Quick Ratio
BMW
MBGAF
F

Profitability

Metric
BMW
MBGAF
F
Return on Assets (Normalized)
4.87%5.58%3.08%
Return on Equity (Normalized)
13.83%16.40%18.80%
Return on Invested Capital (Normalized)
6.85%8.36%4.23%
Return on Assets
BMW
MBGAF
F
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Auto Manufacturers Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
TSLA
Tesla IncBwhqdvjfgcCzclqlr$572.7 Bil
TM
Toyota Motor Corp ADRJjdpprlfdLmyhc$342.7 Bil
STLA
Stellantis NVBglrxjrbLnwxm$87.0 Bil
MBGAF
Mercedes-Benz Group AGPlycgtnkTypqvcb$85.2 Bil
RACE
Ferrari NVGtwwmmjDnjr$79.3 Bil
BMWYY
Bayerische Motoren Werke AG ADRWfnmmhmyLswytj$73.0 Bil
VWAGY
Volkswagen AG ADRPmlqknkXkpv$72.1 Bil
VWAPY
Volkswagen AG ADRRmtjwkspcRkzzh$72.1 Bil
HMC
Honda Motor Co Ltd ADRDpxlspbwkTvhj$60.7 Bil
F
Ford Motor CoCffsjqwhMph$51.9 Bil

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