BMW MOTORS

Financial Research Analysis

INTRODUCTION
“Bayerische Motoren Werke Aktiengesellschaft (BMW)
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. BMW
serves customers throughout the world.”
-Bloomberg
HISTORY
• 1916: Bayerische Motoren Werke (BMW) is born (March
7, 1916)
• 1923: Revealed first BMW motorcycle – BMW R-32
• 1951: Post-war BMW sedan – BMW 501
• 1961: Four-door car – BMW 1500 model
• 2013: First all-electric mobile car launched – BMW i.
brand
MAJOR PRODUCTS AND SERVICES OF
THE COMPANY
• Products • Services
• BMW • Alphabet
• BMW i. • BMW Group Financial
• BMW M. Services

• MINI • Designworks

• MINI John Cooper Works

• Rolls-Royce Motor Cars
• BMW Motorrad
 RECENT FACTUAL SUMMARY OF THE
COMPANY
• 2020 June 10: BMW Group to further biofuel trials, continuing
decarbonisation of sea transport for car carriers
• 2020 May 14: BMW Group & NVIDIA to redefine factory
logistics
• 2020 April 14: Data platform provider Otonomo announces
partnership with BMW Group to aggregate vehicle generated
data
• 2020 April 7: BMW Group focuses on flexibility and solidarity
in dealing with coronavirus pandemic
MAJOR REPORTED FINANCIAL NUMBERS FROM
MARCH 31, 2020 QUARTERLY FINANCIAL
REPORT

In € million:

Net Income (Loss) 574

Total Current Assets 91,589

Total Current Provisions and Liabilities 80,272

Total Liabilities 166,014

Total Shareholders’ Equity 61,248

Total Shares Outstanding 602

BASIC ANALYSIS RATIO

Debt to Assets Ratio 52.46

Current Ratio 1.14
Acid-test 0.70
Gross Margin 15.20%
Profit Margin 2.38%
Inventory Turnover 1.25
Days per Inventory Turn 72.77 ~ 73 days
CURRENT EVENTS AFFECTING THE
COMPANY
• COVID-19 (SARS-CoV-2) pandemic
• Affected motorsport
• Affected overall revenues
• Affected overall business operations
STOCK ANALYSIS

Beta (5Y monthly) 1.37

Price/Earnings Ratio: 7.85

TOP 5 COMPETITION IN THE
MARKET

• Audi (1910)
• Mercedes (1926)
• Jaguar (1935)
• Volvo (1927)
• Lexus (1989)
BRIEF COMPETITOR COMPARISON
• BMW offers more cars than Audi; Audi offers more affordable cars than BMW
• Mercedes has larger lineup of vehicles than BMW; BMW have better fuel
economy with lesser emissions than Mercedes
• BMW is pricier yet sleek in design; Jaguar is more affordable yet bulkier
• BMW is lighter with a better performance; Volvo is bulkier but safer
• BMW is far pricier with its range of automobiles; Lexus is much more affordable
and reliable
OPINION AND ANALYSIS OF
CURRENT STATE OF AFFAIRS OF BMW
• Debt to assets ratio higher than the 40% rule of thumb
• Acid-test ratio is less than 1.0
• Gross margin and profit margin is positive
• Low day sales inventory
• Average-high market stock volatility
• High P/E ratio

~Good to invest in for people seeking high returns; not recommended for people who
are generally risk-averse.
 REFERENCES
BMW Group. Classic History (n. d.). Retrieved from https://www.bmwgroupclassic.com/en/history.html

Bloomberg. Bayersische Motoren Werke AG. Retrieved from https://www.bloomberg.com/profile/company/BMW:GR

BMW Group. Brands and Services (n.d.). Retrieved from https://www.bmwgroup.com/en/brandsand-services.html

Portnews IAA. BMW Group joins UECC and GoodShipping in further biofuel trials, continuing decarbonisation of sea transport for car carriers (June 10, 2020). Retrieved
from https://en.portnews.ru/news/297148/

Nvidia. Press Release. BMW Group Selects NVIDIA to Redefine Factory Logistics. Retrieved from
https://nvidianews.nvidia.com/news/bmw-group-selects-nvidia-to-redefine-factory-logistics#:~:
text=GTC%202020%20%2D%2D%20BMW%20Group,technologies%2C%20the%20companies%20announced%20today.

FutureCar. Data Platform Provider Otonomo Announces Partnership with BMW Group to Aggregate Vehicle Generated Data. Retrieved from https://
www.futurecar.com/3887/Data-Platform-Provider-Otonomo-Announces-Partnership-with-BMW-Group-to-Aggregate-Vehicle-Generated-Data

Touring car times. How the covid 19 crisis is affecting touring car teams. Retrieved from
https://www.touringcartimes.com/2020/05/27/analysis-covid-19-crisis-affecting-touring-car-teams-part-one/

Difference between BMW and Mercedes. Retrieved from

https://www.ratelab.ca/bmw-vs-mercedes/#:~:text=Both%20Mercedes%20and%20BMW%20stand,larger%20cars%2C%20BMW%20wins%20over.

Jaguar vs BMW (n.d.). Retrieved from https://www.jaguarcharleston.com/jaguar-vs-bmw/

Marketing91. Top 12 BMW competitors. Retrieved from https://www.marketing91.com/top-12-bmw-competitors/

Bloomberg. BMW:GR. Bayerische Motoren Werke AG. Retrieved from https://www.bloomberg.com/quote/BMW:GR

Audi vs. BMW (May 6, 2020). Retrieved from https://www.repairsmith.com/i/blog/audi-vs-bmw-which-right-luxury-car-for-you/

BMW Group. Investor relations. Retrieved from https://www.bmwgroup.com/en/investor-relations/financial-reports.html

Beta for stock analysis. Retrieved from https://finance.yahoo.com/quote/BMW.DE/key-statistics?p=BMW.DE