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Bayerische Motoren Werke Aktiengesellschaft
(XETRA:BMW)
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Rating:56Neutral
Price Target:
€55.00
▼(-4.65% Downside)
Action:Reiterated
Date:08/01/26
Overall score reflects a balance between attractive valuation (low P/E and high dividend yield) and meaningful fundamental/operational risks. The largest negatives are weak cash generation (negative free cash flow) and a clearly bearish longer-term price trend (below 50/100/200-day averages). Earnings-call messaging provides some support via confirmed guidance, restructuring actions and capital discipline, but residual-value provisions, macro headwinds and execution uncertainty keep the outlook cautious.
Positive Factors
Manufacturing efficiency
The sustained reduction in German plant cost per unit demonstrates tangible operational learning across people, energy, supplies, and depreciation. This efficiency base can support competitiveness and help protect profitability as BMW manages a softer pricing and demand environment over the coming quarters.
Negative Factors
Persistently weak cash conversion
Negative free cash flow across the latest three periods shows that accounting profit is not currently translating into cash after investment needs. The sharp decline in operating cash generation reduces financial flexibility and could constrain BMW’s ability to fund dividends, investment, or restructuring internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Manufacturing efficiency
The sustained reduction in German plant cost per unit demonstrates tangible operational learning across people, energy, supplies, and depreciation. This efficiency base can support competitiveness and help protect profitability as BMW manages a softer pricing and demand environment over the coming quarters.
Read all positive factors
Bayerische Motoren Werke Aktiengesellschaft (BMW) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€32.24B
Dividend Yield8.26%
Average Volume (3M)1.85M
Price to Earnings (P/E)5.1
Beta (1Y)1.19
Revenue Growth-6.21%
EPS Growth11.84%
CountryDE
Employees146,064
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)10.38
Shares Outstanding615,810,400
10 Day Avg. Volume1,854,326
30 Day Avg. Volume1,849,455
Financial Highlights & Ratios
PEG Ratio3.50
Price to Book (P/B)0.60
Price to Sales (P/S)0.43
P/FCF Ratio-19.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€69.89Price Target Upside21.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.51
Revenue Forecast (FY)€128.24B
Bayerische Motoren Werke Aktiengesellschaft Business Overview & Revenue Model
Company Description
Bayerische Motoren Werke AG (BMW AG), a German enterprise established in Munich in 1916, is a global powerhouse specializing in the design, production, and distribution of automobiles and motorcycles, alongside their corresponding spare parts and ...
How the Company Makes Money
BMW makes money mainly by selling and leasing vehicles and by earning income from financial services tied to those vehicles.
1) Vehicle and motorcycle sales (core operating revenue)
- New vehicle sales: A major revenue stream comes from the sale ...
Bayerische Motoren Werke Aktiengesellschaft Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call balanced strategic positives and concrete cost/efficiency actions against clear near-term execution and market risks. Positives include a formal restructuring program designed to reduce complexity and purchasing costs, confirmation of the 8%–10% EBIT target, cost-per-unit improvements in German plants (25% reduction over five years), continued profitability in China in Q2, disciplined R&D/CapEx guidance (R&D ~4%–5%, CapEx <5%) and product catalysts (iX3 launch). Negatives and risks include sizable near-term restructuring costs (up to 1.25 percentage points of EBIT), uncertainty over the ultimate run-rate savings and timing (management declined to commit to a specific euro figure), deterioration in residual-value trends (with ~EUR 2.25 billion of extra provisions), commodity/FX headwinds in H2, and weaker China profitability versus the prior year. Overall, the positives around strategic direction and cost discipline are meaningful but are offset by notable execution risks and near-term headwinds that leave the tone cautious and guarded.Positive Updates
Restructuring Program Launched with Four Pillars
Company announced a broad restructuring (8,000 headcount reduction) focused on four pillars: customer/sales (direct sales), internal organizational simplification, purchasing/partnerships and product development standardization. Program expected to materially improve cost structure and time-to-market.
Negative Updates
Large-Scale Headcount Reductions and Near-Term Costs
Restructuring includes 8,000 positions (primarily overhead/white-collar); the program will incur an EBIT impact disclosed as up to 1.25 percentage points for the year and cash-out is expected mainly in 2027 with 'hardly any' cash out in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Restructuring Program Launched with Four Pillars
Company announced a broad restructuring (8,000 headcount reduction) focused on four pillars: customer/sales (direct sales), internal organizational simplification, purchasing/partnerships and product development standardization. Program expected to materially improve cost structure and time-to-market.
Read all positive updates
Company Guidance
BMW confirmed 2026 guidance for an automotive EBIT margin of 1%–3% (which incorporates a restructuring hit of up to 1.25 percentage points) while reiterating its long‑term EBIT target corridor of 8%–10%; management announced ~8,000 role reductions with little cash out in 2026 and most cash effects expected in 2027 (people discussions to start in Q4) and declined to commit to a run‑rate savings figure (analysts have suggested a high‑three‑hundred‑million‑euro range, to be clarified at the September CMD). The group reiterated capital intensity guidance (R&D ~4%–5% of revenue; CapEx <5%), said ordinary PPA amortization runs through mid‑2028 and goodwill is roughly EUR 1bn, flagged EUR 2.25bn of extra residual‑value provisions, reported the China JV remained profitable in Q2, warned of FX/commodity headwinds in H2 but expects working‑capital unwind and CapEx below depreciation to support free cash flow, and pointed to the iX3 ramp in China (end‑Q4) as a contributor for 2027.Bayerische Motoren Werke Aktiengesellschaft Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 128.03B | 133.45B | 142.38B | 155.50B | 142.61B | 111.24B |
| Gross Profit | 18.32B | 27.44B | 30.54B | 37.23B | 31.19B | 28.29B |
| EBITDA | 18.23B | 19.20B | 19.85B | 26.25B | 32.29B | 22.77B |
| Net Income | 6.30B | 7.29B | 7.29B | 11.29B | 17.94B | 12.38B |
Balance Sheet | ||||||
| Total Assets | 272.99B | 278.35B | 267.73B | 250.89B | 246.93B | 229.53B |
| Cash, Cash Equivalents and Short-Term Investments | 20.63B | 21.31B | 21.85B | 17.33B | 22.03B | 21.81B |
| Total Debt | 116.79B | 106.30B | 85.50B | 71.55B | 71.56B | 83.73B |
| Total Liabilities | 175.55B | 180.45B | 172.73B | 157.97B | 155.64B | 154.40B |
| Stockholders Equity | 95.35B | 95.70B | 92.31B | 89.60B | 87.13B | 74.37B |
Cash Flow | ||||||
| Free Cash Flow | -5.51B | -2.98B | -4.64B | 6.47B | 14.47B | 9.28B |
| Operating Cash Flow | 3.80B | 7.98B | 7.57B | 17.36B | 23.52B | 15.90B |
| Investing Cash Flow | -8.68B | -9.95B | -11.37B | -9.55B | -4.77B | -6.39B |
| Financing Cash Flow | 5.14B | 1.62B | 5.77B | -6.67B | -17.98B | -6.74B |
Bayerische Motoren Werke Aktiengesellschaft Technical Analysis
Negative
57.68
Price Trends
58.98
Negative
61.11
Negative
70.33
Negative
Market Momentum
-1.99
Positive
32.37
Neutral
20.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BMW, the sentiment is Negative. The current price of 57.68 is above the 20-day moving average (MA) of 57.16, below the 50-day MA of 58.98, and below the 200-day MA of 70.33, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 32.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BMW.
Bayerische Motoren Werke Aktiengesellschaft Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | €38.12B | 7.54 | 5.43% | 8.84% | -7.07% | -24.21% | |
56 Neutral | €32.24B | 5.13 | 6.61% | 8.26% | -6.21% | 11.84% | |
55 Neutral | €34.22B | 6.51 | 3.28% | 7.74% | -0.79% | -37.21% | |
54 Neutral | €7.68B | -6.73 | 0.26% | 6.02% | 12.91% | ― |
* Consumer Cyclical Sector Average
DE:BMW
Bayerische Motoren Werke Aktiengesellschaft
53.26
-21.57
-28.82%
DE:MBG
Mercedes-Benz Group
39.59
-10.34
-20.72%
DE:PAH3
Porsche Automobil Holding
25.09
-6.86
-21.48%
DE:VOW3
Volkswagen
68.00
-15.47
-18.53%
Bayerische Motoren Werke Aktiengesellschaft Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
BMW Advances 2025–2027 Share Buy-Back With New Xetra Purchases
Positive
Oct 12, 2026
BMW AG continued executing its 2025/2027 share buy-back programme, acquiring 830,852 ordinary shares between 5 and 11 October 2026 on the Xetra trading venue. The purchases were made at weighted average prices ranging from about EUR 52.48 to EUR 5...
Business Operations and StrategyStock Buyback
BMW Accelerates 2025–2027 Share Buy-Back With 971,615 Shares Repurchased
Positive
Oct 5, 2026
BMW AG continued executing its 2025–2027 share buy-back programme, repurchasing a total of 971,615 ordinary shares between 28 September and 4 October 2026 across venues including Xetra, CEUX and TQEX. By reducing the free float through ongoi...
Business Operations and StrategyStock Buyback
BMW Advances 2025–2027 Share Buy-Back With Over 1 Million Shares Repurchased
Positive
Sep 28, 2026
BMW AG, the German premium automotive manufacturer headquartered in Munich, continues to leverage capital market tools to manage its shareholder structure and optimize capital allocation across its listed ordinary shares. The company’s stock...
Business Operations and StrategyStock Buyback
BMW Steps Up 2025–2027 Share Buy-Back With Over 713,000 Shares Repurchased
Positive
Sep 21, 2026
BMW AG continued executing its 2025–2027 share buy-back programme, purchasing 713,546 ordinary shares between 14 and 20 September 2026 on venues including Xetra, CEUX and TQEX. The trades were conducted at weighted average prices around the ...
Business Operations and StrategyStock Buyback
BMW Steps Up 2025–2027 Share Buy-back with New Tranche
Positive
Sep 14, 2026
BMW AG continued its 2025/2027 share buy-back programme by repurchasing 410,911 ordinary shares between 7 and 13 September 2026 on the Xetra trading venue. The weighted average purchase prices ranged around EUR 62 to 64 per share, and detailed tra...
Business Operations and StrategyStock Buyback
BMW Advances 2025–2027 Share Buy-Back With New Purchases
Positive
Sep 7, 2026
BMW AG is a major German automotive manufacturer headquartered in Munich and known for producing premium vehicles and motorcycles. Its shares trade on key German regulated and free markets, providing broad access to institutional and retail invest...
Business Operations and StrategyStock Buyback
BMW Accelerates Share Buy-Back with 435,000 Shares Repurchased
Positive
Aug 31, 2026
BMW AG continued execution of its 2025–2027 share buy-back programme, acquiring 435,378 ordinary shares between 24 and 30 August 2026 on the Xetra trading venue. The weighted average purchase prices ranged from about €57.74 to €6...
Business Operations and StrategyStock Buyback
BMW Advances 2025–2027 Share Buy-Back With New Tranche
Positive
Aug 24, 2026
In the week from 17 to 23 August 2026, BMW AG continued execution of its 2025/2027 share buy-back programme, repurchasing a total of 608,831 ordinary shares on Xetra at an average price close to €58 per share. The trades were spread across s...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
BMW Advances 2025–2027 Share Buy-Back With August Purchases
Positive
Aug 17, 2026
BMW AG has continued executing its 2025–2027 share buy-back programme, purchasing 524,931 ordinary shares between 10 and 16 August 2026 on Xetra at a weighted average price of around EUR 59 per share. The repurchases, disclosed under EU mark...
Business Operations and StrategyStock Buyback
BMW Advances 2025–2027 Share Buy-Back with New Interim Purchases
Positive
Aug 10, 2026
BMW AG continued to execute its 2025–2027 share buy-back programme, acquiring 599,668 ordinary shares between 3 and 9 August 2026 via Xetra at weighted average prices around EUR 59–61. The purchases, spread over five trading days, repr...
Business Operations and StrategyStock Buyback
BMW Continues 2025–2027 Share Buy-Back With 383,000 Shares Repurchased
Positive
Aug 3, 2026
BMW AG is a major German premium automotive and motorcycle manufacturer with a significant presence on European stock exchanges, notably Frankfurt and Munich. Through its various brands, it serves global customers in the high-end vehicle market wh...
Business Operations and StrategyStock Buyback
BMW Advances 2025–2027 Share Buy-Back With 634,883 Shares Repurchased
Positive
Jul 27, 2026
BMW AG has continued executions under its 2025–2027 share buy-back programme, repurchasing a total of 634,883 ordinary shares between 20 July and 24 July 2026. The trades were carried out on Xetra at weighted average prices ranging from abou...
Stock BuybackRegulatory Filings and Compliance
BMW Increases Treasury Share Holdings Above 3% Threshold
Neutral
Jul 22, 2026
BMW has disclosed that its holdings of own shares have risen to 3.023% of the total 615,810,431 shares issued, crossing the 3% threshold on July 21, 2026.This increase from a previously reported 0.295% stake signals a significant expansion of the ...
Business Operations and StrategyStock Buyback
BMW Steps Up 2025–2027 Share Buyback With 510,000-Share Purchase
Positive
Jul 20, 2026
BMW AG has continued executing its 2025–2027 share buyback programme, repurchasing 510,000 ordinary shares between 13 and 19 July 2026 on Xetra at a weighted average price of just under €59 per share. The ongoing buyback signals manage...
Business Operations and StrategyStock Buyback
BMW Accelerates 2025–2027 Share Buy-Back With 600,000-Share Tranche
Positive
Jul 13, 2026
BMW AG, the Munich-based premium automobile manufacturer, continued execution of its 2025/2027 share buy-back programme, repurchasing 600,000 ordinary shares between 6 and 12 July 2026. The transactions were carried out on the Xetra trading venue ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.