Narrow-moat-rated BMW reported mixed first-quarter results as modest top-line growth (excluding currency translation) was offset by profit margin pressure. Even so, this performance was generally in line with our expectations, and our long-term thesis is unchanged. Nevertheless, we increased our fair value estimate EUR 1 to EUR 166 due to the time value of money since our last update.
BMW possesses durable competitive advantages, given the strength and global recognition of the brands, technological leadership in powertrains, and ability to command premium pricing from consumers that regularly rate its vehicles as some of the best to own, resulting in excess returns.
BMW operates in the highly cyclical, capital-intensive automotive business, where overcapacity restricts pricing and constrains economic profits.
|
Metric
|
BMWYY
|
TM
|
VWAGY
|
|---|---|---|---|
Price/Earnings (Normalized) | 5.84 | 9.79 | 4.06 |
Price/Book Value | 0.70 | 1.38 | 0.41 |
Price/Sales | 0.37 | 1.00 | 0.21 |
Price/Cash Flow | 2.73 | 5.53 | 1.44 |
|
Metric
|
BMWYY
|
TM
|
VWAGY
|
|---|---|---|---|
Quick Ratio | 0.73 | 0.98 | 0.89 |
Current Ratio | 1.09 | 1.18 | 1.16 |
Interest Coverage | 25.99 | 320.51 | 29.43 |
|
Metric
|
BMWYY
|
TM
|
VWAGY
|
|---|---|---|---|
Return on Assets (Normalized) | 4.87% | 5.79% | 2.83% |
Return on Equity (Normalized) | 13.83% | 15.14% | 10.57% |
Return on Invested Capital (Normalized) | 6.85% | 6.76% | 4.62% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TSLA
| Tesla Inc | Xlqqxqbqp | Fbxfsb | $557.2 Bil | |
TM
| Toyota Motor Corp ADR | Rbfysshf | Crzzx | $305.8 Bil | |
MBGAF
| Mercedes-Benz Group AG | Gdryrxcbm | Kcjmfr | $78.6 Bil | |
RACE
| Ferrari NV | Kwwstzl | Jncv | $73.2 Bil | |
VWAGY
| Volkswagen AG ADR | Pngjtgcx | Ynsr | $68.5 Bil | |
VWAPY
| Volkswagen AG ADR | Qbdkzmg | Vst | $68.5 Bil | |
STLA
| Stellantis NV | Dmhjfwnzv | Hfxp | $63.5 Bil | |
HMC
| Honda Motor Co Ltd ADR | Pvklpfpv | Dpgl | $55.4 Bil | |
GM
| General Motors Co | Sxctwfgkc | Tvjld | $51.8 Bil |
