German stock report - Bayerische Motoren Werke AG

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Bayerische Motoren Werke drops 2.6% July 21, 2017 20:00 CEST

NEWS BITES - EUROPE

Bayerische Motoren Werke AG (ETR:BMW), Germany's 2nd largest Automobiles company by market cap, has dropped EUR2.18 (2.6%) from its last trading session of July 20 to close at EUR81.19. Compared with the DAX Index which fell 232.9 points (1.9%) in the day, the relative price change was -0.7%. The fall was exacerbated by spectacular volume of 7.2 times the average daily volume of 54.1 million shares.

BAYERISCHE MOTOREN WERKE ISSUED 6 NEW PATENTS IN THE WEEK OF JULY 18, 2017

Bayerische Motoren Werke (BMW) has been issued 6 new patents by the US Patent and Trademark Office. For details see Section 7

SECTION 1

BAYERISCHE MOTOREN WERKE BEARISH SIGNALS

1.1 Fundamentals:

+ Total Liabilities/EBITDA of 13.9 which compares unfavourably with the Joseph Piotroski benchmark of 5.

1.2 Overvaluation [compared with sector average]:

+ Price/Sales of 0.5 [0.4].

+ Year-on-Year Earnings Growth of 7.7% [11.9%].

+ Price/Earnings/Growth of 0.8 [0.7].

1.3 Technicals:

Downtrend: The stock dropped 2.6% on high volatility today.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 82.91 minus the 26-day EMA of 83.15 is negative 0.24 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.

+ Falls to Rises: in the past month the number of falls outnumbered rises 14:8 or 1.8:1.

1.4 Low Performance Indicators:

DescriptionValueRank In Market
EPS Growth %7.7In Bottom Quartile
Total Debt to Equity2.0In Bottom Quartile

SECTION 2

BAYERISCHE MOTOREN WERKE BULLISH SIGNALS

2.1 Fundamentals:

+ The P/E of 7.8 multiplied by the P/NTA of 1.3 is 9.9. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ The relative yield of the stock, defined by its yield of 4.3%, divided by average yield of dividend yielding stocks in the DAX Index of 1.0% is 449.0%. This suggests the stock is undervalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top 10% of stock by value of Q Ratio.

+ The company is cash rich with Cash to Market Capitalisation at 14.5%.

+ Interest cover defined by EBIT/I is 20.8 times. This indicates it is less leveraged.

+ Net profit margin has averaged 7.2% in the last 3 years. This is better than the sector average of 5.5% and suggests a high margin of safety.

+ Brandirectory have estimated Bayerische Motoren Werke brand value at EUR19.9 billion (US$23.2 billion). The Brand Value represents an impressive 13.9% of the estimated Enterprise Value of EUR143.5 billion (US$167.3 billion).

+ As per the Du Pont analysis, Return on Equity of 14.8% is better than sector average of 10.5%. This is computed as net profit margin of 7.3% times asset turnover [sales/assets] of 0.5 times leverage factor [total assets/shareholders' equity] of 4.0.

2.2 Undervaluation [compared with sector average]:

+ Return on Equity 14.8% [10.4%].

+ Return on Assets 3.7% [2.9%].

+ Return on Capital Employed 8.4% [7.2%].

+ Dividend yield of 4.3% [0.5%].

2.3 Technicals:

+ The present value of EUR1,000 (PV1000) invested one year ago in Bayerische Motoren Werke is EUR1,157, comprising a capital gain of EUR112 and dividend reinvested of EUR45.

PV10001-week1-month1-year
BMW.ETR9709711,157
DAX Index9679911,203

+ The present value of EUR1,000 (PV1000) invested ten years ago in Bayerische Motoren Werke is EUR2,204, including a capital gain of EUR781 and dividend reinvested of EUR423.

+ 10 years Multiplier in EUR = 2.204x

+ Compound Annual Growth Rate (CAGR) in EUR = 8.2%

Present Value of USD1,000 invested 10 years ago:

+ The present value of USD1,000 (PV1000) invested ten years ago in Bayerische Motoren Werke is $US1,862, including a capital gain of $US504 and dividend reinvested of $US358.

+ 10 years ago EUR 1 equalled USD 1.38

+ 10 years Multiplier in USD = 1.862x

+ Compound Annual Growth Rate (CAGR) in USD = 6.4%

Jul 21, 2017: EUR 1 equals USD 1.17

2.4 Oversold/Bullish/Support Signals:

+ The stock is oversold according to the Williams % R indicator of -84.2, suggesting the price is close to its 14-day low of EUR80.50.

2.5 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverEUR31.4 billion (US$36.6 billion)In Top 1%
Interest Cover20.8In Top Quartile
P/E * P/NTA9.87In Top Quartile
Price to Sales0.5In Top Quartile
Earnings Yield %12.9In Top Quartile
Cash to MCap %14.5In Top Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 387,029,031 shares worth EUR31.4 billion (US$36.6 billion) traded today. In the past week, volume was 2.0 times average and the shares were down 3.0%. The fall was exacerbated by spectacular volume of 7.2 times the average daily volume of 54.1 million shares.

+ Bayerische Motoren Werke is at a discount of 7.9% to its 12-month high of EUR88.20 on January 03. It is also at a premium of 17.3% to the 12-month low of EUR69.22 on September 30, 2016.

3.2 Moving Annual Return

BMWClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
July 2181.193.511.24.816.0
1 Yr ago73.033.2(20.5)3.5(17.0)
2 Yrs ago91.92.92.13.25.4
3 Yrs ago89.982.629.63.733.3
4 Yrs ago69.432.523.94.528.4

3.3 Beta:

+ Beta: the Beta of Bayerische Motoren Werke stock is 1.3. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

SECTION 4

RANKING

4.1 Global Rank [out of 47,512 stocks] and Rank in the Europe Region [out of 8,350 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)57B19555
Total Assets (US$)219.1B28571
Revenue (US$)110.4B5518
Net Profit (US$)8B8611
Return on Equity %14.87,4781,474
Net Profit Margin %7.313,8822,234
Price to Book1.314,1032,415
Price/Earnings8.03,069744
Yield %4.25,403931
PV$1000 (1Year) US$*1,22414,3613,043
US$* Change (1Year) %23.613,9052,924

* 1 year ago EUR 1 = USD 1.1

Jul 21, 2017: EUR 1 equals USD 1.17

4.2 Independent Ratings

Bayerische Motoren Werke AG was ranked 7 in Boston Consulting Group's list of Top 50 Most Innovative Companies 2015; an improvement over a year from rank 18 in 2014.

It was ranked 29 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 12.4% in Waste productivity, 11.9% in Water productivity and 11.2% in Carbon productivity.

It is the 42nd largest by revenue in the FT Global 500.

It is the 52nd largest by revenue in the Forbes Global 2000.

It is placed 451/766 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 41.

SECTION 5

BAYERISCHE MOTOREN WERKE FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)108.8106.894
Pretax (USD B)11.110.610
Net (USD B)7.97.36.6
EPS (EUR)10.459.78.83

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Bayerische Motoren Werke EPS Growth slows to 7.7%

Favourable Changes:

+ Net profit up 7.8% from EUR6.4b ($US6.9b) to EUR6.9b ($US7.2b)

+ EPS up 7.7% from EUR9.7 ($US10.58) to EUR10.45 ($US11.02).

+ Interest cover up 30.3% from 15.9 to 20.8.

+ Profit before tax to Sales up from 10% to 10.3%.

+ Interest expenses to Sales down from 0.7% to 0.5%.

+ Debt to Equity down 4.2% from 2.2 to 2.1.

+ Current ratio up 4.3% from 0.9 to 1.0.

+ Non-current debtors to Total Assets up from 24.3% to 25.5%.

Unfavourable Changes:

+ EBIT to total assets down from 5.7% to 5.4%.

+ Sales and marketing expenses to Sales up from 9.4% to 9.7%.

+ Fixed Assets to Total Assets down from 30.6% to 29.6%.

+ Current Debtors to Total Assets down from 18% to 17.5%.

+ Total Liabilities to EBITDA of 13.9 compares unfavourably with the Joseph Piotroski benchmark of <5. This ratio has deteriorated by 5.7% from the previous year's ratio of 13.2.

+ Total Liabilities to Operating Cash Flow of 44.5 compares unfavourably with the Joseph Piotroski benchmark of <4. However, it has improved by 67% from the previous year's ratio of 134.8.

Note:

+ Total revenue steady at EUR95.0b ($US100.2b).

+ EBIT Margin steady at 10.8%.

+ Total revenue to total assets steady at 0.5.

+ Tax expenses to Sales down from 3.1% to 2.9%.

+ Total non-current assets to Total Assets up from 64.1% to 64.5%.

+ Total current assets to Total Assets down from 35.9% to 35.5%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (EUR)
21 Jul 20173.5
21 Jul 20163.2
21 Jul 20152.9
21 Jul 20142.6
21 Jul 20132.5

SECTION 6

BAYERISCHE MOTOREN WERKE PROFILE

6.1 Activities

Bayerische Motoren Werke (BMW) AG manufactures and sells luxury cars and motorcycles worldwide. The Company produces everything from convertible sports cars to luxury sedans to touring motorcycles with large displacement engines.

6.2 Industry & Sector

Classification LevelName of Sector
Business SectorAutomobiles & Auto Parts
Industry GroupAutomobiles & Auto Parts
IndustryAuto & Truck Manufacturers
Economic SectorConsumer Cyclicals

6.3 Top Management

The chairman is Harald Kruger.

6.4 Issued Capital

Based on 601,995,000 issued shares the market capitalisation is EUR48.9 billion (US$57 billion).

SECTION 7

BAYERISCHE MOTOREN WERKE PATENTS

Issued July 18, 2017

Method for connecting two vehicle components and/or two non-vehicle components [9,707,644]

A method is provided for connecting a first component to a second component. The two components are placed against each other and pre-fixed, wherein the two components are attached and immovably connected to each other at at least one first connection point via a first detachable component connection and are attached and connected to each other so as to be movable relative to each other in a sliding direction at at least one second connection point via a second detachable component connection. The pre-fixed components are rigidly connected, in particular, by welding.

Method for controlling a state of charge of a vehicle battery [9,707,858]

A method is provided for controlling a state of charge of a vehicle battery in order to ensure the starting capability of the vehicle. A battery temperature prediction for the vehicle battery is determined and the battery temperature prediction is used to determine a lower state-of-charge limit of the vehicle battery. The amount of charge in the vehicle battery is controlled in such a way that the state of charge of the battery at least does not fall below the lower state-of-charge limit. Data of a navigation system integrated in the vehicle or coupled to the vehicle are taken into account in the determination of the battery temperature prediction.

System and method for measurement and evaluation of brake pedal performance [9,707,950]

Linear brake pedal travel measurements are provided using a diagnostic unit with at least two linear measurement devices. The at least two linear measurement devices are offset in at least a vertical direction from a face of the brake pedal lever, and therefore directly measure non-linear pedal travel values. Thus, in certain embodiments, the system is further configured to convert the non-linear pedal travel measurements received from each of the at least two linear measurement devices to a linear brake pedal travel value corresponding to an operated position of the brake pedal lever. The resulting linear brake pedal travel information may then be used to evaluate brake pedal performance or measure customer brake feeling in an objective and reproducible way.

Vehicle wheel [D792,314]

e (BMW) has been issued a new U.S. design patent titled "Vehicle wheel" by the US Patent and Trademark Office. The patent number is D792,314 and was issued on July 18, 2017.

CLAIM

The ornamental design for a vehicle wheel, as shown and described.

Vehicle wheel [D792,315]

e (BMW) has been issued a new U.S. design patent titled "Vehicle wheel" by the US Patent and Trademark Office. The patent number is D792,315 and was issued on July 18, 2017.

CLAIM

The ornamental design for a vehicle wheel, as shown and described.

Vehicle wheel [D792,316]

e (BMW) has been issued a new U.S. design patent titled "Vehicle wheel" by the US Patent and Trademark Office. The patent number is D792,316 and was issued on July 18, 2017.

CLAIM

The ornamental design for a vehicle wheel, as shown and described.

To view more details on these Patents, click here

SECTION 8

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

March 24: Bayerische Motoren Werke announces AGM

March 10: Bayerische Motoren Werke announces dividend

Contact: 49-89-3820

Physical Address: Petuelring 130 Munich, 80788 Germany

State/Province/Country: Germany

Country of Incorporation: Germany

Exchange: Xetra Stock Exchange

ISIN: DE0005190003

DE:BMW; ETR:BMW; GR:BMW; BMWG.DE

PermID: 4295869227

Bayerische Motoren Werke Ag, Bayerische Motoren Werke Aktiengesellschaft

Source: www.BuySellSignals.com