Because of the strength of its intangible assets, including brand and intellectual property, BMW has a narrow economic moat rating. Brand strength has enabled premium pricing across all of BMW's products, while intellectual property supports the brand image with strong product execution, especially in powertrains.
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.
BMW operates in the highly cyclical, capital-intensive automotive business, where overcapacity restricts pricing and constrains economic profits.
|
Metric
|
BMW
|
RNO
|
MBGAF
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.18 | 3.41 | 5.41 |
Price/Book Value | 0.76 | 0.48 | 0.84 |
Price/Sales | 0.40 | 0.26 | 0.51 |
Price/Cash Flow | 2.89 | 2.96 | 3.75 |
|
Metric
|
BMW
|
RNO
|
MBGAF
|
|---|---|---|---|
Quick Ratio | 0.73 | 0.96 | 0.90 |
Current Ratio | 1.09 | 1.11 | 1.26 |
Interest Coverage | 25.99 | 7.59 | 29.08 |
|
Metric
|
BMW
|
RNO
|
MBGAF
|
|---|---|---|---|
Return on Assets (Normalized) | 4.87% | 3.77% | 5.58% |
Return on Equity (Normalized) | 13.83% | 15.36% | 16.40% |
Return on Invested Capital (Normalized) | 6.85% | 4.78% | 8.36% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TSLA
| Tesla Inc | Ctvgsmcmxk | Ckzwjz | $452.4 Bil | |
TM
| Toyota Motor Corp ADR | Dwwkfrbtz | Bdv | $305.6 Bil | |
MBGAF
| Mercedes-Benz Group AG | Qrcnntbh | Dwhyghk | $84.4 Bil | |
RACE
| Ferrari NV | Bfhkdstmq | Dtnc | $75.7 Bil | |
STLA
| Stellantis NV | Wpgfdvpz | Hcjq | $74.5 Bil | |
BMWYY
| Bayerische Motoren Werke AG ADR | Jmjlpppx | Vdntbl | $72.0 Bil | |
VWAGY
| Volkswagen AG ADR | Fjtfzcsc | Xprv | $70.5 Bil | |
VWAPY
| Volkswagen AG ADR | Pfwzpmrp | Czx | $70.5 Bil | |
HMC
| Honda Motor Co Ltd ADR | Vckhnpdf | Jqnjy | $55.0 Bil | |
GM
| General Motors Co | Lzpnqlc | Qmhr | $51.5 Bil |
