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1. Company Snapshot

1.a. Company Description

Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, develops, manufactures, and sells automobiles and motorcycles, and spare parts and accessories worldwide.It operates through Automotive, Motorcycles, and Financial Services segments.The Automotive segment is involved in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands.


This segment sells its products through independent and authorized dealerships.The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand name, as well as spare parts and accessories.The Financial Services segment engages in automobile leasing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand.


The company was founded in 1916 and is based in Munich, Germany.

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1.b. Last Insights on BMW

Bayerische Motoren Werke Aktiengesellschaft faces challenges due to weaker sales in China and higher costs from U.S. import tariffs. The company cut its 2025 earnings forecast, citing changed U.S. tariff assumptions and weaker-than-expected growth in China. This impacted profitability expectations, with pre-tax earnings likely to fall slightly this year. Additionally, delayed refunds from U.S. customs and strong local competition in China have contributed to the challenges. Despite this, BMW reported rising profitability in the last quarter, with a core profit margin of 5.2% in its automotive unit.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Tesla in top 10 brands, hybrid reliability improves: New report

Dec -04

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Subaru, BMW top Consumer Reports' top auto brands; Toyota named most reliable, with Tesla most improved

Dec -04

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European Automakers Shares Climb After Trump Commits to Relax Fuel-Economy Rules

Dec -04

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The $13 Billion Time Bomb Inside Germany's Auto Empire

Dec -03

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Nebius leverages Microsoft, Meta contracts for AI expansion 

Dec -03

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Soligenix Inc. (NASDAQ: SNGX) Innovative Platform Provides Novel Treatment for Underserved CTCL Space

Dec -03

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Diginex Just Took a Step Toward Becoming the Platform Every Regulated Company Needs

Dec -02

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Diginex Signs MOU to Acquire Plan A (plana.earth) AI Platform Trusted by Chloe, BMW, Deutsche Bank, Visa and Trivago

Dec -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.15%)

6. Segments

Automotive

Expected Growth: 2.0%

BMW's automotive growth is driven by increasing demand for electric vehicles, expansion into new markets, and a strong product lineup. The company's focus on innovation, particularly in autonomous driving and mobility services, is also contributing to its 2.0% growth. Additionally, BMW's strategic partnerships and investments in technology are expected to fuel future growth.

Financial Services

Expected Growth: 2.2%

BMW's Financial Services growth (2.2) is driven by increasing demand for automotive financing, leasing, and insurance products. Strong sales of BMW vehicles, expanding customer base, and favorable interest rates contribute to growth. Additionally, digitalization and innovative services, such as mobility and subscription-based offerings, enhance customer engagement and drive revenue.

Motorcycles

Expected Growth: 2.5%

Increasing demand for eco-friendly transportation, urbanization, and a growing middle-class population drive motorcycle growth. BMW's strong brand reputation, innovative product lineup (e.g., electric and hybrid models), and strategic expansion into emerging markets contribute to a 2.5% growth rate in the motorcycle segment.

Other Entities

Expected Growth: 1.8%

BMW's Other Entities segment growth of 1.8% is driven by increased demand for mobility services, growth in financial services, and strong performance in the B+ and C segments. The segment's growth is also supported by the company's strategic investments in electrification, autonomous driving, and digitalization, which are expected to drive future revenue streams.

Eliminations

Expected Growth: 1.5%

The 1.5% growth in Eliminations from Bayerische Motoren Werke AG is driven by increased inter-segment transactions, likely due to higher production volumes and intra-group sales. This growth may also be influenced by strategic reorganization and optimization of business segments, leading to more efficient resource allocation and utilization.

7. Detailed Products

BMW Cars

Luxury vehicles, including sedans, coupes, convertibles, and SUVs, known for their performance, handling, and innovative features

Mini Cars

Small, premium vehicles, including hatchbacks, convertibles, and electric models, designed for urban mobility and sustainability

Rolls-Royce Cars

Ultra-luxury vehicles, offering bespoke craftsmanship, opulent interiors, and refined performance, catering to high-end clientele

BMW Motorcycles

High-performance motorcycles, including touring, sport, and adventure bikes, designed for thrill-seekers and enthusiasts

BMW Financial Services

Financial solutions, including leasing, financing, and insurance, supporting customers in purchasing and owning BMW, Mini, and Rolls-Royce vehicles

BMW Mobility Solutions

Car-sharing, ride-hailing, and parking services, providing flexible and convenient mobility options for urban dwellers

BMW Electrification Solutions

Electric vehicle (EV) technology, including batteries, charging infrastructure, and sustainable energy solutions

8. Bayerische Motoren Werke Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Bayerische Motoren Werke AG (BMW) is a well-established luxury automobile brand with a strong reputation for quality and performance. While there are alternative modes of transportation, such as public transportation, electric vehicles, and other automobile brands, the threat of substitutes is relatively low due to BMW's strong brand loyalty and unique product offerings.

Bargaining Power Of Customers

BMW's customers are generally well-informed and have a range of choices in the luxury automobile market. However, BMW's strong brand reputation and loyal customer base give it some negotiating power. Customers may have some bargaining power due to the availability of substitutes, but BMW's premium pricing and high-quality products limit the extent of this power.

Bargaining Power Of Suppliers

BMW has a large and diverse supplier base, which reduces the bargaining power of individual suppliers. Additionally, BMW's significant purchasing volume and long-term contracts with suppliers give it a strong negotiating position.

Threat Of New Entrants

The barrier to entry in the luxury automobile market is high due to significant investment requirements for research and development, manufacturing, and marketing. New entrants would need to invest heavily to establish a brand and gain market share, making it difficult for them to compete with established brands like BMW.

Intensity Of Rivalry

The luxury automobile market is highly competitive, with several established brands such as Mercedes-Benz, Audi, and Lexus competing for market share. The competition is intense, with companies investing heavily in research and development, marketing, and product innovation to gain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.65%
Debt Cost 4.28%
Equity Weight 45.35%
Equity Cost 8.93%
WACC 6.38%
Leverage 120.52%

11. Quality Control: Bayerische Motoren Werke Aktiengesellschaft passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BMW

A-Score: 6.3/10

Value: 9.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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VW

A-Score: 6.3/10

Value: 10.0

Growth: 3.6

Quality: 2.4

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Mercedes-Benz

A-Score: 6.3/10

Value: 8.9

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Michelin

A-Score: 5.9/10

Value: 6.4

Growth: 4.7

Quality: 4.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Exor

A-Score: 4.7/10

Value: 7.7

Growth: 3.3

Quality: 7.3

Yield: 0.6

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Ferrari

A-Score: 4.2/10

Value: 0.7

Growth: 7.7

Quality: 7.2

Yield: 1.2

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

95.68$

Current Price

95.68$

Potential

-0.00%

Expected Cash-Flows