Bayerische Motoren Werke Aktiengesellschaft (BAMXF)
NEUTRALFundamental
52
Price
$58.00
Market Cap
$34.99B
Part 1 · What the company is worth
Overview
BMW designs, manufactures and sells premium cars and motorcycles under the BMW, Mini and Rolls-Royce brands, competing on the higher-margin end of the auto market rather than on volume. Alongside the vehicles themselves, it runs a financial-services arm that leases and finances the cars it sells, which is large enough to be reported as its own division even though its purpose is to support vehicle sales rather than operate independently.
How it makes money
Automotive revenue is booked when a car or motorcycle is delivered to a dealer or customer, at prices that vary widely by model and market and that carry higher margins on premium models than on entry-level ones. Financial Services earns interest and fee income on the loans and leases it writes for BMW buyers, a revenue stream that grows with vehicle sales but is reported and accounted for separately, with meaningful revenue eliminated on consolidation because it overlaps with cars already counted in the automotive figures.
Revenue by segment
Design, production and sale of BMW, Mini and Rolls-Royce vehicles; the core of the group's revenue and earnings.
Loans, leases and insurance products sold alongside vehicle purchases, mainly to support automotive sales.
BMW-branded motorcycles, a small and stable niche next to the much larger car business.
Competitive moat
Brand · NarrowThe BMW badge, and Rolls-Royce even more so, allows the company to charge prices well above the cost of an equivalent mass-market car, and brand loyalty keeps many owners buying the same marque repeatedly. It is a narrow rather than wide moat because Mercedes-Benz and Audi offer comparably strong premium brands in the same segments, so BMW is competing among equals rather than standing alone.
What drives demand
CyclicalPremium vehicles are a large discretionary purchase, so sales rise and fall with consumer confidence and credit conditions more than essential goods do. The company has flagged China specifically as a source of swings in recent periods, where intense local competition and weaker demand pulled deliveries down sharply even while other regions held up better.
Key risks
- Weakening demand and competition in China — Chinese deliveries fell sharply in 2025 amid intense local competition, and the company has pointed to growing geopolitical tension and volatility in that market as a factor that complicates long-range planning.
- Tariffs and trade policy — Tariff changes and currency developments were cited as factors that shaped results in 2025 and require flexibility from the organization, given BMW's global manufacturing and export footprint.
- Financial Services credit exposure — The financial-services division carries credit risk on the loans and leases it writes for vehicle buyers, which rises if economic conditions weaken and customers struggle to make payments.
The case for
Buyers argue that the BMW and Rolls-Royce brands preserve pricing power that mass-market carmakers lack, that weakness in China is cyclical rather than permanent, and that the financial-services arm adds a steadier, fee-like income stream on top of vehicle sales.
The case against
Sellers worry that a 12.5% drop in Chinese deliveries in 2025 reflects a structural loss of ground to local premium and electric-vehicle brands rather than a temporary dip, and that tariffs and currency swings add cost pressure the company cannot fully offset through pricing on a highly discretionary product.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$127.11B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$6.18B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$1.71B
Total Equity
$95.30B
Total Liabilities
$116.79B
Current Ratio
1.15
Interest Coverage
-
Debt/EBITDA
8.47
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$130.83
Current Price
$58.00
Margin of Safety
+55.7%
Fair Value Range
$85.04 - $176.63
Estimation Methods
Valuation Metrics
P/E Ratio
5.65
ROE
6.6%
P/B Ratio
0.37
P/FCF
20.46
Gross Margin
14.3%
ROIC
2.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
2.5%
WACC
2.2%
ROIC − WACC
+0.2 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (11)
- P/FCF 20.46
- P/B Ratio 0.37
- Debt/Equity ratio
- Operating Margin 6.3%
- Positive Free Cash Flow
- Current Ratio
- Price below Graham Number
- Revenue Growth 5Y 6.2%
- Earnings Surprise avg 2.9%
- PEG Ratio 0.36
- Net Margin Trend 5.5% vs 5.1%
Failed (10)
- Price CAGR -3.51%
- ROIC 2.5%
- Gross Margin 14.3%
- CapEx intensity
- Debt/EBITDA
- DCF valuation (Overvalued)
- ROE 6.6%
- Analyst Consensus 43% Buy
- Earnings Quality (OCF/NI) 0.55
- Piotroski F-Score 1/9
Unavailable (6)
- EPS data insufficient
- Dividend Payout NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Dr. Milan Nedeljkovic | CEO & Chairman of the Management Board | 56 |
| Mr. Walter Mertl | Member of Management Board of Finance | 51 |
| Jochen Goller | Member of the Board of Management of Customer, Brands & Sales | 59 |
| Ms. Ilka Horstmeier | People, Real Estate & Labour Relations Director and Member of the Board of Management | 56 |
| Dr. Joachim Post | Head of Development & Member of the Board of Management | 54 |
| Dr. Nicolai Martin | Member of the Board of Management and Purchasing & Supplier Network | 47 |
| Dr. Raymond Wittmann | Member of the Board of Management | 47 |
| Mr. Adam Sykes | Head of Investor Relations | - |
| Dr. Andreas Liepe | General Counsel | - |
| Mr. Alexander Bilgeri | Head of Communication Human Resources, Production, Purchasing & Sustainability | 50 |
Audit Risk
9
Board Risk
6
Compensation Risk
1
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for BAMXF, sourced from Markets Gazette.