Bayerische Motoren Werke (BMW:EUR57.26) loses EUR415 million (US$466 million) in MCap, issued new European patent 03 July 2020

NEWS BITES - EUROPE

Dateline: Friday July 03, 2020

Bayerische Motoren Werke AG (ETR:BMW), Germany's 3rd largest Automobiles company by market cap, has decreased 69.0c (1.2%) from its previous trading session to close at EUR57.26. Compared with the DAX Index which fell 80.4 points (0.6%) in the day, the relative price change was -0.6%. The volume was 0.5 times the average daily trading volume of 1.8 million shares. It posted the steepest fall in MCap (EUR415.4 million (US$466.5 million)) with the most influence on the Automobiles sector. There were 905,335 shares worth EUR51.8 million (US$58.2 million) traded today.

BAYERISCHE MOTOREN WERKE (BMW) ISSUED PATENT TITLED "VEHICLE WITH AN AIR CONDITIONER WHICH HAS A PRECONDITIONING OPERATION"

Bayerische Motoren Werke (BMW) has been issued a new European patent titled "Vehicle With an Air Conditioner Which Has a Preconditioning Operation" by the European Patent Office. The patent number is DE102019107613 (B3) and was issued on July 2, 2020.

Stock Summary (traded in EUR)

Currency1 EUR = 1.12 USD Dividend Yield4.4%
Jul 03 closeEUR57.26SectorAutomobiles
Ave Daily Volume1,823,900 sharesShares Outstanding601,995,000
52-Week Range34.66 - 72.97Market CapEUR34.5 billion [USD38.7 billion]
P/E7.7EPS Growth (FY2019 vs FY2018)-29.5%

ADR Summary (traded in USD)

Home ExchangeGermany% of shares outstanding0.04%
CodeBMWYYRatio3 ADRs equals 1 ordinary share
ISINUS0727433056TypeUnsponsored
CUSIP072743305Jul 02 closeUSD21.57
*No. Held by Institutions801,707Ave Daily Volume113,034 ADRs
Number of shares equivalent267,23652-Week Range12.63 - 27.20

*Total ADRs Held by Institutions 801,707; equivalent to 267,236 Bayerische Motoren Werke shares on issue. This represents 0.04% of total shares on issue.

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
XetraBMWEUR57.261,795,62099.60.5
FrankfurtBMWEUR57.164,2590.20.4
Borsa ItalianaBMWEUR57.295,6920.10.2
Total100.00

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Financials Summary: EPS down 29.5% to EUR7.47 in FY2019

+ Net profit was down 29.5% from USD7.8 billion in FY2018 to USD5.5 billion in FY2019.

+ Earnings Per Share (EPS) was down 29.5% from EUR10.60 in FY2018 to EUR7.47 in FY2019.

Year ended DecFY2019FY2018FY2017
Sales (USD B)117108.7110.3
Pretax (USD B)810.812
Net (USD B)5.57.89.6
EPS (EUR)7.4710.613.09

Click on links to download BMW data

Financials in xls

News Archives Past 4 years in HTML

Patents past quarter in xls

INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile and Independent Ratings

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

SECTION 7 Bayerische Motoren Werke Preferred Shares

Click here to view the following

SECTION 8 Patents

SECTION 9 Dividend

SECTION 10 Financials FY 2019

SECTION 11 Peer Group Analysis & Ranking

SECTION 12 News Archives (Jul 2018 - Mar 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Stock Buzz

News DateHeadlinePublisher
Jul 02, 2020Bayerische Motoren Werke (ETR:BMW) PT Set at 60.00 by UBS Groupmodernreaders.com
Jun 19, 2020Jefferies Financial Group Analysts Decrease Earnings Estimates for Bayerische Motoren Werke AG (OTCMKTS:BAMXF)theenterpriseleader.com
Jun 18, 2020DGAP-PVR: Bayerische Motoren Werke -3-Finanztreff
Jun 18, 2020In-Wheel Motor Market Overview on Product Performance 2029 : Bayerische Motoren Werke AG (BMW), Ziehl-Abegg SESBWire
Jun 16, 2020numbers crunched for you before earnings results Bayerische Motoren Werke AG (OTCMKTS:BAMXF)Stock Market Daily
Jun 09, 2020Bayerische Motoren Werke AG (BMWYY) CEO Oliver Zipse on Q1 2020 Results - Earnings Call TranscriptSeeking Alpha

SECTION 2 Corporate Profile and Independent Ratings

2.1 Activities

Bayerische Motoren Werke AG is a Germany-based automobile and motorcycle manufacturer. The Company divides its activities into four segments: Automotive, Motorcycles, Financial Services and Other Entities. The Automotive segment develops, manufactures, assembles and sells cars and off-road vehicles under the brands BMW, MINI and Rolls-Royce, as well as spare parts and accessories. The Motorcycles segment develops, manufactures, assembles and sells motorcycles, as well as spare parts and accessories. The Financial Services segment focuses on car leasing, multi-brand financing, fleet business, retail customer and dealer financing, customer deposit business and insurance activities. The Other Entities segment comprises other operating companies, such as BMW (UK) Investments Ltd, Bavaria Lloyd Reisebuero GmbH.

In FY 2019, the top earner of Revenue was Automotive [97.5%] . In FY 2019, revenue growth was highest in Motorcycles [9%] followed by Automotive [6.8%] at Rank 2 . In FY 2019, the top regional earner of Revenue was Rest of Europe [31.5%] followed by China [19.7%] at Rank 2 , USA [18.9%] at Rank 3 , Germany [12.9%] at Rank 4 and Rest of Asia [10.9%] at Rank 5. In FY 2019, revenue growth was highest in the USA [23.4%] followed by Rest of the Americas [8.7%] at Rank 2 , China [8.5%] at Rank 3 , Rest of Europe [5.3%] at Rank 4 and Rest of Asia [3.4%] at Rank 5.

2.2 Segment Information

EUREUR
Description2019-12-31% of Total2018-12-31% of TotalGrowth(%)
Automotive91.7 B97.585.8 B97.56.8
Motorcycles2.4 B2.52.2 B2.59
Total94 B10088 B1006.9

Top Segments by Revenue and rank

In FY 2019, the top earner of Revenue was Automotive [97.5%] .

Top Segments by Revenue growth and rank

In FY 2019, revenue growth was highest in Motorcycles [9%] followed by Automotive [6.8%] at Rank 2 .

Regional Information

EUREUR
Description2019-12-31% of Total2018-12-31% of TotalGrowth(%)
Germany13.4 B12.913.6 B14-0.9
China20.6 B19.719 B19.68.5
USA19.7 B18.916 B16.523.4
Rest of Europe32.8 B31.531.2 B32.25.3
Rest of Asia11.3 B10.911 B11.33.4
Rest of the Americas3.9 B3.73.6 B3.78.7
Other regions2.4 B2.32.6 B2.7-7.4
Total104.2 B10096.9 B1007.6

Top Revenue Segments by Region and rank

In FY 2019, the top regional earner of Revenue was Rest of Europe [31.5%] followed by China [19.7%] at Rank 2 , USA [18.9%] at Rank 3 , Germany [12.9%] at Rank 4 and Rest of Asia [10.9%] at Rank 5.

Top Regional Segments by Revenue growth and rank

In FY 2019, revenue growth was highest in the USA [23.4%] followed by Rest of the Americas [8.7%] at Rank 2 , China [8.5%] at Rank 3 , Rest of Europe [5.3%] at Rank 4 and Rest of Asia [3.4%] at Rank 5.

2.3 Contact Details

Websitehttps://www.bmwgroup.com/
Physical AddressPetuelring 130 Muenchen BAYERN 80788
Phone49893820
Fax49893827025858
Emailir@bmwgroup.com

2.4 Industry & Sector

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

2.5 Independent Ratings

+ Fortune 500:

Bayerische Motoren Werke AG 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.

+ Top 50 BCG:

It 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.

+ Forbes 2000:

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

+ FT 500:

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

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 1.5% Past Week

The price ranged between a low of 55.77 on Friday, Jun 26 and a high of 57.95 on Thursday, Jul 02.

DayBayerische Motoren WerkeClose price [EUR]Price change %Relative change %Comment
ThursdayOffers 7th highest dividend yield57.953.10.3Week-high of 57.95 Top Rise; VI*=1.1
WednesdayDecreases 1.1%56.2-1.1-0.7Price fall on slipping relative strength
TuesdayOffers 4th highest dividend yield56.821.61.1VI*=1.1
MondayIncreases55.920.3-1.1Price/MAP50 above 1
FridayOffers 4th highest dividend yield55.77-2.3-1.6Week-low of 55.77 Steepest Fall

[Volume Index (VI); 1 is average]

3.2 Rank in the top 20% by Relative Valuation in the German market

DescriptionValueRank
Dividend Yield %4.4%In Top 10%
P/E * P/NTA5.52In Top 13%
Price/Earnings7.7In Top 14%
Price to Sales0.3In Top 15%
Price to Book Value0.7In Top 18%
Earnings Yield %13.1In Top 19%
Cash to MCap %17.3In Top 20%
EV/EBITDA20.9In Top 20%

3.3 Rank in the top 16% by Price Performance in the German market

DescriptionValueRank
1-week Price Change %2.7In Top 16%

3.4 Uptrend

Beta > 1 combined with price rise. The Beta of the stock is 1.1.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 56.86 minus the 26-day EMA of 55.93 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

3.5 Undervaluation

Price/Earnings:

Bayerische Motoren Werke stock is trading at the second lowest P/E multiple in the DAX Index.

Earnings Yield

- The earnings yield of 13.1% is 1,087.5 times the 10-year bond yield of 0.01%.

Dividend Yield:

Bayerische Motoren Werke stock is the fourth highest dividend yielding stock in the DAX Index.

Dividend Yield of 4.4% > Index avg of 3.1%:

- The relative yield of the stock, defined by its yield of 4.4%, divided by average yield of dividend yielding stocks in the DAX Index of 3.1% is 141.9%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 5% of stocks by value of Q Ratio.

- The company is cash rich with Cash to Market Capitalisation at 17.3%.

Brand Value/Enterprise Value:

- Brandirectory have estimated Bayerische Motoren Werke brand value at EUR20.7 billion (US$23.2 billion). The Brand Value represents an impressive 13.0% of the estimated Enterprise Value of EUR159.2 billion (US$178.8 billion). Enterprise Value is defined as MCap of EUR34.5 billion plus net debt of EUR124.7 billion.

3.6 Other Bullish Signals

- Interest cover defined by EBIT/I is 15.3 times. This indicates it is less leveraged.

- Net profit margin has averaged 7.0% in the last 3 years. This is better than the sector average of 6.1% and suggests a high margin of safety.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 18% by Size in the German market

DescriptionValueRank
Ave daily TurnoverEUR51.8 million (US$58.2 million)In Top 1%
Annual RevenueEUR104.2 billion (US$117 billion)In Top 3%
MCapUSD38.7 billionIn Top 18%

4.2 Rank in the top 25% by Gearing in the German market

DescriptionValueRank
Interest Cover15.3In Top 25%

4.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Period with TSR > 9.2%

TSR %10 yrs
BMW.ETR9.3

4.4 Present Value of EUR1000 Invested in the Past 3 Months; The Best Period with PVEUR1000 > 1,426

PVEUR1,0003 mo ago
BMW.ETREUR1,427
Automobiles sectorEUR1,192
DAX IndexEUR1,356

4.5 Past quarter: price rise of 35.1%

3-Month price change of 35.1% for Bayerische Motoren Werke outperformed the change of 31.5% in the DAX index for a relative price change of 3.6%.

Price Change %Quarter
Bayerische Motoren Werke35.1
Automobiles sector19.2
DAX index31.5

4.6 Total Shares on Issue: 5-Year Decrease of 8.3%

In the past 5 years total shares on issue have decreased by 54.5 million (8.3%) from 656.5 million to 602 million. Based on a dynamic start date of 5 years ago, there has been only 1 decline in issued capital over the last 5 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue
2019601,995,196
2018601,995,196
2017601,995,196
2016657,109,600
2015656,804,600
2014656,494,740

4.7 Safe Interest Cover

Interest cover of 15.3 is above a safe benchmark figure of 3. However, it has decreased in the past two years.

YearsInterest cover
201915.26
201825.94
201726.91
201620.76
201515.93

4.8 Revenue, EPS, and EBITDA:

- Revenue growth rate has shown signs of recovery in recent years. [compared with previous year, all figures in %]

FYRevenue GrowthEPS GrowthEBITDA Growth
20198-30-24
2018-1-19-10

4.9 Satisfies two criteria of Benjamin Graham

- The P/E of 7.7 multiplied by the P/NTA of 0.7 is 5.5. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there have been 2 declines in earnings in the last 5 years.

SECTION 5 Today's Bearish Signals

5.1 Downtrend

Trailing Relative Strength (6 months) at 39 percentile:

- The stock has a 6-month relative strength of 39 in the German market of 688 stocks and 6 preference stocks which means it has underperformed 61% of the market.

5.2 Other Bearish Signals

- Total Liabilities/EBITDA of 22.1 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- Return on Capital Employed of 5.2% versus sector average of 6.9% and market average of 6.8%.

- As per the Du Pont analysis, Return on Equity of 8.3% is lower than sector average of 9.2%. This is computed as net profit margin of 4.8% times asset turnover [sales/assets] of 0.46 times leverage factor [total assets/shareholders' equity] of 3.8.

SECTION 6 Ongoing Bearish Parameters

6.1 Rank in the bottom 7% by Gearing in the German market

DescriptionValueRank
Total Debt to Equity2.1In Bottom 7%

6.2 Rank in the bottom 23% by Productivity in the German market

DescriptionValueRank
Return on Assets [ROA] %2.2In Bottom 23%

6.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < -1.3%

TSR %1 yr3 yrs5 yrs
BMW.ETR-4.1-1.4-2.1

6.4 Present Value of EUR1000 Invested in the Past [1 Yr, 3 Yrs]; The Worst Periods with PVEUR1000 < 960

PVEUR1,0001 yr ago3 yrs ago
BMW.ETREUR959EUR959
Automobiles sectorEUR924EUR880
DAX IndexEUR993EUR1,004

6.5 The Worst Periods [1 Yr, 3 Yrs] with Price Change % < -9.1

3-Year price change of -18.2% for Bayerische Motoren Werke underperformed the change of 1.6% in the DAX index for a relative price change of -19.8%.

Price Change %Year3 Years
Bayerische Motoren Werke-9.2-18.2
Automobiles sector-7.1-11.1
DAX index-1.6

6.6 MCap: 5-Year Decrease of EUR25 billion [USD28 billion]

In the past 5 years Market Capitalization has decreased by EUR25.2 billion (42%) from EUR59.7 billion to EUR34.5 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 4 out of 5 years.

PriceMCap (EUR B)MCap (US$ B)
LastEUR57.2634.538.7
1 Year agoEUR63.0740.145.3
2 Years agoEUR69.9146.854.5
3 Years agoEUR69.9748.955.9
4 Years agoEUR56.0940.845.4
5 Years agoEUR82.0859.766.2

6.7 EPS growth [FY2019 vs FY2018] of -29.5%:

There have been three rises and two declines in the past 5 years. Average Annual Compounded rate of growth in EPS for the 5 years was -3.3%.

FYEPS (EUR)Growth %
20197.47-29.5
201810.6-19.0
201713.0925.3
201610.457.7
20159.79.9

6.8 High Debt to Equity (%) and Increasing

The debt to equity ratio of 207.3% is above a safe benchmark figure of 70%. Moreover, it has deteriorated in the past two years.

YearsDebt to Equity (%)
Dec 2019207.26
Dec 2018189.3
Dec 2017186.69
Dec 2016200.39
Dec 2015204.87

6.9 Declining Volume, down 13% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 13.2% to 1.8 million shares.

Avg. Daily Volume Traded 12 months ended Jul 03, million shares

YearADVT
20201.8
201959.0
2018146.2
201745.6
20162.1

6.10 Declining VWAP, down 18% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has decreased by 17.6% to EUR56.14. .

Past five years, 12 months ended Jul 03 (EUR)

YearHigh PriceVWAPLow Price
202072.9756.1434.66
201978.0271.757.89
201883.9374.7166.35
201775.9371.9552.44
201686.7668.1553.77

6.11 Declining share turnover, down 31% in 5 years

In the past five years, average daily share turnover has decreased 30.8% to EUR99.6 million (US$111.8 million). This suggests decreased liquidity.

Past five years, 12 months ended Jul 03 (EUR million)

YearAverage Daily Turnover
202099.6
20194210.7
201811006.1
20173321.9
2016143.8

6.12 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Total shares on issue unchanged.

6.13 Year-over-year (%) Change in Dividend:

Final dividend for FY 2019 was EUR2.50. The year-on-year change was down 28.6% from EUR3.50 in the previous year FY 2018.

FinalFY 2018FY 2019
Dividend (EUR)3.52.5

SECTION 7 Bayerische Motoren Werke Preferred Shares

7.1 Preferred Series

SymbolPreferreds Name
BMW3Bayerische Motoren Werke AG preference

7.2 Trailing 12 Months Dividends of Bayerische Motoren Werke Preferred Shares [Values in EUR]

Trailing 12 Months ToBMW3
July 03, 20202.52
July 04, 20193.52
July 04, 20184.02

7.3 PV$1000 Comparison of Bayerische Motoren Werke Preferred Shares & Indices

PV$10001-week1-month1-year
BMW.ETR1,027988959

Glossary

ADVT: Average Daily Volume of shares Traded

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabiliites (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Interest Cover: Earnings Before Interest and Tax/Interest (times)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com