German stock alert


Afternoon Alert: Bayerische Motoren Werke up 2.3% in 2 days 19 January 2018 12:18 CET


Bayerische Motoren Werke AG (ETR:BMW) extended its gains on Friday, rising an additional EUR1.40 (or 1.5%) to trade at EUR94.47. The shares have risen EUR2.12 (or 2.3%) over the past two trading days vs. the DAX Index which has risen 1.7% in the same period.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 1.72 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high four times and in the last three months eight times, pointing to a significant uptrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Dividend yield of 3.7% [0.9%]

+ Return on Equity 14.8% [9.6%]

+ Return on Assets 3.7% [2.5%]

+ Price to Book of 1.5 [2.0]

+ Return on Capital Employed 8.4% [6.6%]

+ Price/Earnings of 8.2 [9.4]


The stock has outperformed 61% of the Xetra market over the past 6 months.

Bearish Signals:

Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Net Profit growth has shown signs of deterioration in recent quarters.


The 0.3% discount to 12-month high of EUR94.75 against the 22.6% premium to 12-month low of EUR77.07 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Year-on-Year Earnings Growth of 7.7% [22.9%]

Price/Earnings/Growth of 0.84 [0.4]

Bayerische Motoren Werke AG (DE:BMW; ETR:BMW; GR:BMW)

ISIN: DE0005190003

PermID: 4295869227