DB:BMW

Stock Analysis Report

Bayerische Motoren Werke

Executive Summary

Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, develops, manufactures, and sells automobiles and motorcycles, and spare parts and accessories worldwide.

Rewards

PE ratio (10x) is below the German market (20.6x)

Earnings are forecast to grow 8.16% per year

Pays a high and reliable dividend of 4.77%

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (5%) are lower than last year (8.2%)



Snowflake Analysis

6 star dividend payer with adequate balance sheet.


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Share Price & News

How has Bayerische Motoren Werke's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BMW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

BMW

-2.1%

DE Auto

0.5%

DE Market


1 Year Return

-4.4%

BMW

7.7%

DE Auto

15.5%

DE Market

Return vs Industry: BMW underperformed the German Auto industry which returned 11.8% over the past year.

Return vs Market: BMW underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

BMWIndustryMarket
7 Day-2.4%-2.1%0.5%
30 Day-5.1%-2.1%1.4%
90 Day0.2%-1.7%5.3%
1 Year0.7%-4.4%12.2%7.7%19.2%15.5%
3 Year-9.3%-20.8%3.0%-7.4%15.7%5.5%
5 Year-17.1%-32.5%-8.6%-21.6%27.3%10.1%

Price Volatility Vs. Market

How volatile is Bayerische Motoren Werke's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bayerische Motoren Werke undervalued compared to its fair value and its price relative to the market?

9.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BMW (€73.4) is trading above our estimate of fair value (€44.6)

Significantly Below Fair Value: BMW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BMW is good value based on its PE Ratio (10x) compared to the Auto industry average (10.8x).

PE vs Market: BMW is good value based on its PE Ratio (10x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: BMW is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BMW is overvalued based on its PB Ratio (0.8x) compared to the DE Auto industry average (0.8x).


Next Steps

Future Growth

How is Bayerische Motoren Werke forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMW's forecast earnings growth (8.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: BMW's earnings (8.2% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: BMW's earnings are forecast to grow, but not significantly.

Revenue vs Market: BMW's revenue (1.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: BMW's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BMW's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Bayerische Motoren Werke performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMW has high quality earnings.

Growing Profit Margin: BMW's current net profit margins (5%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: BMW's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: BMW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BMW had negative earnings growth (-38.2%) over the past year, making it difficult to compare to the Auto industry average (-29.5%).


Return on Equity

High ROE: BMW's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bayerische Motoren Werke's financial position?


Financial Position Analysis

Short Term Liabilities: BMW's short term assets (€91.7B) exceed its short term liabilities (€80.6B).

Long Term Liabilities: BMW's short term assets (€91.7B) exceed its long term liabilities (€88.0B).


Debt to Equity History and Analysis

Debt Level: BMW's debt to equity ratio (200.1%) is considered high.

Reducing Debt: BMW's debt to equity ratio has reduced from 207.6% to 200.1% over the past 5 years.

Debt Coverage: BMW's debt is not well covered by operating cash flow (2.7%).

Interest Coverage: BMW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BMW has a low level of unsold assets or inventory.

Debt Coverage by Assets: BMW's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Bayerische Motoren Werke's current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.5%industryaverage4.3%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: BMW's dividend (4.77%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: BMW's dividend (4.77%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: BMW's dividends per share have been stable in the past 10 years.

Growing Dividend: BMW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), BMW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BMW's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

Management

What is the CEO of Bayerische Motoren Werke's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Oliver Zipse (55yo)

0.4yrs

Tenure

€3,153,811

Compensation

Mr. Oliver Zipse serves as Chairman of the Management Board at Bayerische Motoren Werke AG since August 16, 2019 and has been its Member of Management Board since May 13, 2015. He serves as Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Oliver's total compensation ($USD3.51M) is about average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Oliver's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: BMW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

12.0yrs

Average Tenure

60yo

Average Age

Experienced Board: BMW's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Pieter A. Nota (55yo)

    Member of Management Board

    • Tenure: 2yrs
    • Compensation: €2.92m
  • Andreas Wendt (61yo)

    Head of Purchasing & Supplier Network and Member of Management Board

    • Tenure: 1.3yrs
    • Compensation: €1.37m
  • Oliver Zipse (55yo)

    Chairman of Management Board & CEO

    • Tenure: 0.4yrs
    • Compensation: €3.15m
  • Klaus Fröhlich (59yo)

    Head of Development & Member of the Board of Management

    • Tenure: 5.1yrs
    • Compensation: €3.34m
  • Jurgen Reul

    General Counsel

    • Milan Nedeljkovic (50yo)

      Member of Board of Management

      • Tenure: 0.3yrs
    • Nicolas Peter (57yo)

      CFO & Member of Management Board

      • Tenure: 3yrs
      • Compensation: €2.87m
    • Alexander Bilgeri

      Vice President of Product

      • Tenure: 3.3yrs
    • Torsten Schuessler

      Head of Investor Relations

      • Ilka Horstmeier (50yo)

        Human Resources

        • Tenure: 1yrs

      Board Members

      • Stefan Quandt (53yo)

        Deputy Chairman of Supervisory Board

        • Tenure: 21yrs
        • Compensation: €430.00k
      • Karl-Ludwig Kley (68yo)

        Deputy Chairman of Supervisory Board

        • Tenure: 9.7yrs
        • Compensation: €430.00k
      • Susanne Klatten (57yo)

        Member of Supervisory Board

        • Tenure: 23yrs
        • Compensation: €218.00k
      • Norbert Reithofer (63yo)

        Chairman of Supervisory Board

        • Tenure: 4.7yrs
        • Compensation: €640.00k
      • Willibald Löw (63yo)

        Employee Representative Member of Supervisory Board

        • Tenure: 21yrs
        • Compensation: €220.00k
      • Manfred Schoch (64yo)

        Deputy Chairman of Supervisory Board

        • Compensation: €430.00k
      • Werner Zierer (60yo)

        Employee Representative Member of Supervisory Board

        • Tenure: 19yrs
        • Compensation: €220.00k
      • Stefan Schmid (54yo)

        Deputy Chairman of Supervisory Board

        • Tenure: 12yrs
        • Compensation: €428.00k
      • Thomas Wittig (59yo)

        Head of Group Financial Services & Employee Representative Member of Supervisory Board

        • Tenure: 1yrs
      • Markus Flasch

        Chairman of the Board of Management of BMW M GmbH & Head of Development of BMW 8 series models

        • Tenure: 1.3yrs

      Company Information

      Bayerische Motoren Werke Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Bayerische Motoren Werke Aktiengesellschaft
      • Ticker: BMW
      • Exchange: DB
      • Founded: 1916
      • Industry: Automobile Manufacturers
      • Sector: Automobiles
      • Market Cap: €44.950b
      • Shares outstanding: 658.12m
      • Website: https://www.bmwgroup.com/de.html

      Number of Employees


      Location

      • Bayerische Motoren Werke Aktiengesellschaft
      • Petuelring 130
      • Munich
      • Bavaria
      • 80788
      • Germany

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      0O0VLSE (London Stock Exchange)Preferred StockGBEURJan 1992
      BAMX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
      BMWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
      BMW3DB (Deutsche Boerse AG)Preferred StockDEEURJan 1992
      BMWBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFJan 1992
      0O0ULSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
      BMWXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
      BMW3XTRA (XETRA Trading Platform)Preferred StockDEEURJan 1992
      BMWBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
      BYMO.FOTCPK (Pink Sheets LLC)Preferred StockUSUSDJan 1992
      BMWWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
      BMWSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
      BMWDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
      BMWM5 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
      BMW3DBATS-CHIXE (BATS 'Chi-X Europe')Preferred StockGBEURJan 1992
      BMW3SWX (SIX Swiss Exchange)Preferred StockCHCHFJan 1992
      BMW3ETLX (Eurotlx)Preferred StockITEURJan 1992
      BMWBDB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 2008
      BMWY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

      Biography

      Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, develops, manufactures, and sells automobiles and motorcycles, and spare parts and accessories worldwide. The company operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment develops, manufactures, assembles, and sells automobiles and off-road vehicles under the BMW, MINI, and Rolls-Royce brands; and spare parts and accessories, as well as offers mobility services. This segment sells its products through independent and authorized dealerships. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles under the BMW Motorrad brand; and spare parts and accessories. The Financial Services segment is involved in automobile leasing, fleet and multi-brand business, retail and dealership financing, customer deposit business, and insurance activities. The company has a strategic collaboration with Jaguar Land Rover Automotive plc to develop electric drive systems. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is based in Munich, Germany. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 20:45
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.