German stock report - Bayerische Motoren Werke AG

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UPDATE: Bayerische Motoren Werke hits year-high 6th time in three months January 17, 2018 20:00 CET

NEWS BITES - EUROPE

Bayerische Motoren Werke AG (ETR:BMW), Germany's 2nd largest Automobiles company by market cap, hit a 52-week high of EUR93.58 during the day, but closed lower at EUR92.35. In the last one month the stock has hit a new 52-week high two times and in the last three months six times. The stock price has decreased 29.0c (0.3%) from its last trading session of January 16 to close at EUR92.35. Compared with the DAX Index which fell 90.6 points (0.7%) in the day, the relative price increase was 0.4%. The volume was 0.02 times the average daily trading volume of 111.3 million shares.

BAYERISCHE MOTOREN WERKE ISSUED 3 NEW PATENTS IN THE WEEK OF JANUARY 16, 2018

Bayerische Motoren Werke (BMW) has been issued 3 new patents by the USPTO and EPO.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicators, Moving Annual Return, Beta & Alpha, Aggregate Volumes, Prices and Turnover Period

SECTION 3 RANKING

Global, Independent Ratings

SECTION 4 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 5 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 6 PATENTS

SECTION 7 STOCK BUZZ

Acquisition, Corporate Wire

SECTION 1 BAYERISCHE MOTOREN WERKE BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 8 multiplied by the P/NTA of 1.4 is 11.5. 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 3.8%, divided by average yield of dividend yielding stocks in the DAX Index of 1.9% is 194.4%. 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 quartile of stock by value of Q Ratio.

+ The company is cash rich with Cash to Market Capitalisation at 12.7%.

+ 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 5.3% and suggests a high margin of safety.

+ Brandirectory have estimated Bayerische Motoren Werke brand value at EUR18.9 billion (US$23.2 billion). The Brand Value represents an impressive 12.6% of the estimated Enterprise Value of EUR150.2 billion (US$184.3 billion).

+ As per the Du Pont analysis, Return on Equity of 14.8% is better than sector average of 9.3%. 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.

1.2 Undervaluation [compared with sector average]:

+ Price/Earnings of 8 [9.8]. We estimate Bayerische Motoren Werke stock is trading at a current year P/E of 7.4 and a forward year P/E of 6.8.

+ Price to Book of 1.4 [1.9]. We estimate Bayerische Motoren Werke stock is trading at a current year Price to Book of 1.3 and a forward year Price to Book of 1.1.

+ Return on Equity 14.8% [9.3%].

+ Return on Assets 3.7% [2.5%].

+ Return on Capital Employed 8.4% [6.6%].

+ Dividend yield of 3.8% [0.9%].

1.3 Technicals:

+ The price lifted 3.3% in the last week and jumped 6.0% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 89.76 minus the 26-day EMA of 88.43 is positive 1.33 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

+ The present value of EUR1,000 (PV1000) invested one year ago in Bayerische Motoren Werke is EUR1,156, comprising a capital gain of EUR111 and dividend reinvested of EUR45.

PV10001-week1-month1-year
BMW.ETR1,0331,0601,156
DAX Index9911,0061,140

+ The present value of EUR1,000 (PV1000) invested ten years ago in Bayerische Motoren Werke is EUR2,972, including a capital gain of EUR1,401 and dividend reinvested of EUR571.

+ 10 years Multiplier in EUR = 2.972x

+ Compound Annual Growth Rate (CAGR) in EUR = 11.5%

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 $US2,453, including a capital gain of $US981 and dividend reinvested of $US471.

+ 10 years ago EUR 1 equalled USD 1.4868

+ 10 years Multiplier in USD = 2.453x

+ Compound Annual Growth Rate (CAGR) in USD = 9.4%

Jan 17, 2018: EUR 1 equals USD 1.23

1.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverEUR187.3 million (US$229.8 million)In Top 1%
Interest Cover20.8In Top Quartile
Price/MAP501.04In Top Quartile
Price to Sales0.6In Top Quartile
P/E * P/NTA11.53In Top Quartile
Earnings Yield %12.5In Top Quartile
Price/MAP2001.09In Top Quartile
Revenue Per EmployeeEUR754,941 (US$926,139)In Top Quartile

SECTION 2 BAYERISCHE MOTOREN WERKE BEARISH SIGNALS

2.1 Fundamentals:

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

+ Net Profit growth has shown signs of deterioration in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 17-9.8-18.57.6
Jun 1710.62.68.6
Mar 17-5.3449.2

2.2 Overvaluation [compared with sector average]:

+ Price/Sales of 0.6 [0.4].

+ Year-on-Year Earnings Growth of 7.7% [18.6%].

+ Price/Earnings/Growth of 0.8 [0.5].

2.3 Technicals:

+ The 1.3% discount to 12-month high of EUR93.58 against the 19.8% premium to 12-month low of EUR77.07 suggests the climb might be peaking.

2.4 Overbought/Bearish/Resistance Signals:

+ At EUR92.35 the price has risen above the upper Bollinger band resistance of EUR92.10, indicating a downside risk for it to fall back within the band.

+ The Relative Strength Index (RSI) of 74.4 has penetrated the overbought line of 70, suggesting the price gain of 6% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -12.7, suggesting the price is close to its 14-day high of EUR93.58.

2.5 Low Performance Indicators:

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

2.6 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in BMW would have produced a return of 15.3%.

BMWClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 1792.353.511.14.215.3
1 Yr ago83.113.210.84.315.1
2 Yrs ago74.992.9(16.6)3.2(13.4)
3 Yrs ago89.962.69.53.212.6
4 Yrs ago82.182.5173.620.5

Close 5 years ago EUR70.26

2.7 Beta & Alpha:

+ Beta: the Beta of Bayerische Motoren Werke stock is 1.1. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

+ Alpha: the Alpha of the stock is -8.5. The actual return of 6.84% fell short of the expected return of 15.3%, reflecting underperformance.

2.8 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ Xetra: BMW.ETR 2,000,000 [VI of 0.02] volume 98.16% of aggregate. Price: EUR92.35.

+ Stuttgart: BMW.STU 16,077 [VI of 1.5] volume 0.79% of aggregate. Price: EUR92.31.

+ Borsa Italiana: BMW.MI 7,640 [VI of 1.5] volume 0.37% of aggregate. Price: EUR92.15.

+ Frankfurt: BMW.FRA 7,090 [VI of 1.3] volume 0.35% of aggregate. Price: EUR92.10.

+ Hanover: BMW.HAN 2,205 [VI of 1.5] volume 0.11% of aggregate. Price: EUR92.95.

+ OTC Pink: BAMXF.PINKSHEETS 1,822 [VI of 0.5] volume 0.09% of aggregate. Price: $US112.74. Using the current exchange rate of USD1 equals 0.8152EUR, The shares are at a 0.5% discount to the close price on Xetra.

+ Munich: BMW.MUN 1,156 [VI of 0.6] volume 0.06% of aggregate. Price: EUR92.30.

+ Aggregate volume: there were 2 million shares of Bayerische Motoren Werke worth EUR188.2 million traded today. The aggregate volume was 0.02 times average trading of 111.8 million shares.

SECTION 3 RANKING

3.1 Global Rank [out of 47,427 stocks] and Rank in the Europe Region [out of 8,529 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)68.2B17849
Total Assets (US$)231.3B30382
Revenue (US$)116.6B5417
Net Profit (US$)8.4B6711
Return on Equity %14.87,7691,568
Net Profit Margin %7.314,4492,281
Price to Book1.415,0642,432
Price/Earnings8.03,114721
Yield %3.86,4311,219
PV$1000 (1Year) US$*1,33313,4383,006
US$* Change (1Year) %28.414,7813,237

* 1 year ago EUR 1 = USD 1.06

Jan 17, 2018: EUR 1 equals USD 1.23

3.2 Independent Ratings

+ Top 50 BCG:

Bayerische Motoren Werke AG was ranked 14 in Boston Consulting Group's list of Top 50 Most Innovative Companies 2016; a deterioration over a year from rank 7 in 2015.

+ FT 500:

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

+ Fortune 500:

It was ranked 52 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 51 in 2016.

+ Newsweek 500:

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.

+ Forbes 2000:

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

+ BSS/News Bites:

It is placed 422/744 in BSS News Bites' ranking of German performers in the past year, a percentile ranking of 43.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 86,205 shares worth $US8,889,226 or 0.06% by value of the ETF's portfolio [Ranked 294 out of 7457 by value and 13 out of 147 for Germany].

SECTION 4 BAYERISCHE MOTOREN WERKE FINANCIALS

4.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)114.5112.499
Pretax (USD B)11.611.110.5
Net (USD B)8.37.77
EPS (EUR)10.459.78.83

Net profit was up 7.8% from US$7.7 billion in 2015 to US$8.3 billion in 2016. Earnings Per Share (EPS) was up 7.7% from EUR9.70 to EUR10.45.

4.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (EUR)
17 Jan 20183.5
17 Jan 20173.2
17 Jan 20162.9
17 Jan 20152.6
17 Jan 20142.5

SECTION 5 BAYERISCHE MOTOREN WERKE PROFILE

5.1 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.

5.2 Industry & Sector

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

5.3 Top Management

The chairman is Harald Kruger.

5.4 Issued Capital

Based on 601,995,000 issued shares the market capitalisation is EUR55.6 billion (US$68.2 billion).

SECTION 6 BAYERISCHE MOTOREN WERKE PATENTS

Issued January 16, 2018

Method and system for contextually recommending a place of interest to a user and smart check-in [9,869,562]

The disclosure is directed to improving driving experience. For example, using one or more computing devices, a current location of a user may be determined and a place of interest, located at a distance from the current location, may be identified. The one or more computing devices may determine that the place of interest meets one or more requirements, and designate the place of interest as a candidate place of interest. The candidate place of interest may be recommended to the user based on a defined criteria. The one or more computing devices may also determine that the user has arrived at a parking location corresponding to the candidate place of interest, and associate the parking location and the candidate place of interest based on one or more inputs by the user.

Taillight for a vehicle [D808,048]

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

Taillight for a vehicle [D808,047]

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

To view more details on these Patents, click here

SECTION 7 STOCK BUZZ

7.1 Acquisition

November 24 2017: SGL Group acquires BMW Group's minority interest in the joint venture SGL Automotive Carbon Fibers (SGL ACF)

Wiesbaden/Munich, November 24, 2017. SGL Carbon SE is acquiring BMW Group's 49% equity investment in the joint ventures SGL Automotive Carbon Fibers GmbH & Co. KG (Germany) and SGL Automotive Carbon Fibers LLC (US) ' together referred to as ' SGL ACF'. An agreement on this matter was signed by SGL Group and BMW Group today. Once the deal has been completed, SGL Group will be the sole owner of SGL ACF. As is customary, the transaction is subject to approval from the respective authorities.

Source: Company Website

7.2 Corporate Wire

To view Recent Company Headlines, click here

December 11 2017: BMW Group increases sales in November

Munich. BMW Group sales continued their positive trend last month with a total of 220,649 vehicles delivered to customers, an increase of 5.2% and a new all-time high for the month of November. With its three premium brands, BMW, MINI and Rolls-Royce, the BMW Group has sold a total of 2,229,497 vehicles so far this year, + 3.6% compared with the same period last year.

"With our strong premium brands, BMW, MINI and Rolls-Royce, the BMW Group covers all segments and is the world's leading manufacturer of premium vehicles," commented Dr.

November 24 2017: BMW Group invests 200 million euros in Battery Cell Competence Centre

Munich. The BMW Group continues to focus on the implementation of its electro-mobility strategy, with the company concentrating all its technological expertise relating to battery cells at a new competence centre. Klaus Frohlich, member of the BMW AG Board of Management, responsible for Research and Development, and Oliver Zipse, member of the BMW AG Board of Management, responsible for Production, were joined by Bavarian Minister of Economic Affairs Ilse Aigner for the symbolic ground-breaking of the BMW Group Battery Cell Competence Centre in Munich today.

November 13 2017: BMW Group sells more than 2 million vehicles in 2017 so far

Munich. For the first time ever at this point in the year, the BMW Group has delivered more than two million vehicles to customers around the world. A total of 2,008,849 vehicles have been sold in the first ten months of 2017, an increase of 3.4% on the same period last year. October sales of 197,601 (+0.8%) achieved the same high level as last year, despite the current changeover of the significant BMW X3 model, the new version of which is arriving in dealerships during November.

November 07 2017: BMW Group on course for successful financial year

Substantial upfront expenditure for tomorrow's mobility ++ BMW Group will offer 25 electrified models by 2025 ++ Germany serves as innovation driver for mobility ++ Kruger: We are resolutely doing things the BMW way ++ Nine-month revenues and earnings up on previous year ++ EBIT margin in target range between 8 and 10 per cent

Munich.

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