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Research Tree provides access to ongoing research coverage, media content and regulatory news on BAYERISCHE MOTOREN WERKE AG. We currently have 25 research reports from 1 professional analysts.
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BAYERISCHE MOTOREN WERKE AG
BAYERISCHE MOTOREN WERKE AG
Reasonable start to 2017
10 Feb 17
BMW delivered a total of 163,288 vehicles in January, of which 143,553 (+7.2%) BMW and 19,563 (+3.7%) Mini cars. Disproportionate volume growth was achieved in Asia (+12% to 66,719) and reasonable growth in Europe (+3.5% to 63,915). On the other hand, deliveries hardly changed in the Americas (+1% to 26,940). The group’s model 7 (+30% to 4,403) and X1 (+40% to 20,059) as well as the X5 (+23% to 14,739) were the driving forces behind the above growth rate. Simultaneously, the model 5, which is now being replaced, saw its volume falling by 14% to 22,144. Assuming the brand’s bread-and-butter models (e.g. 3, 5, X3, X5) will continue doing well or start recovering during the course of 2017, the group should be able to increase earnings further.
Volume growth has clearly moderated
10 Jan 17
The BMW Group achieved car volume growth of 6.2% to 1.75m through to September 2016 while the growth rate fell to 3.0% to 620,965 in Q4 although Q4 15 was rather weak (+2.5%). In fact, deliveries were up by only 0.8% to 215,188 in December which brought the full-year number to 2.37m (+5.3%). The respective numbers for the BMW brand were +1.2% to 178,849 and +5.2% to 2.00m and for the Mini brand -1.5% to 35,814 and +6.4% to 360,233. The regional break-down shows continuous but slower growth for Asia (+4.5% to 65,244 and +9.0% to 745,784) and Europe (+1.2% to 98,590 and +9.2% to 1.09m). On the other hand, the group has clearly lost market share in Nafta as deliveries fell by 2.3% to 46,109 in December and by 7.2% to 458,982 in the full-year. Consequently, the recent dollar strength has not helped the group to generate higher profits with cars imported into the US. In fact, the opposite might have happened. As the Spartanburg plant exports a large share of its production (of several X models) to other parts of the world, rising dollar costs have possibly burdened BMW’s earnings. Spartanburg produces about the same number of cars as the BMW brand sells in the USA.
To fight Uber, Daimler and BMW might merge their car-sharing operations
16 Dec 16
Car2go (Daimler) and Drive Now (BMW) might be merged into one company which, according to the media, allows both to fight Uber more successfully. Together they are believed to operate more than 20,000 cars worldwide, of which 2,500 electric cars and 6,000 in Germany. The German car-sharing market is believed to have a fleet of 7,000 cars, i.e. BMW and Daimler together have a market share of more than 80%. Uber is currently testing self-driving cars in the USA, but has experienced a backslash in California. As Uber has not applied for permission to test-drive these cars, Californian authorities have forbidden these cars with immediate effect.
Strong growth in Europe and Asia, sharp fall in the Americas
12 Dec 16
The group’s deliveries increased by 6.2% to 209,743 in November which brought the ytd number to 2.15m, an increase of 5.8%. Deliveries of Mini cars (+7.9% to 31,593 and +7.4% to 324,417, respectively) continued to outperform those of BMW vehicles (+5.9% to 177,740 and +5.6% to 1.82m). BMW continued to benefit from disproportionate SUV growth, in particular the X1 (+74% to 22,595 in November). In addition, deliveries of the model 7 continued rising sharply (+70% to 6,883). As in the months before, deliveries to European clients continued rising strongly (+11% to 95,079) as did those to Asian clients (+15% to 69,520). On the other hand, deliveries to American clients continued falling (-14% to 39,051 in November and -7.7% to 412,873 ytd). Management blames the tough pricing competition in the US market as the reason for this poor development (-10% to 327,711 ytd). This suggests to us that management is reluctant to participate in this price war. Only what happens in the next months will reveal whether this is the sole reason or whether BMW has the wrong products for current US demand.
US$500m to be invested in start-ups by 2026
28 Nov 16
BMW started a venture capital fund in 2011 with an initial investment of $100m. This is now to be expanded to $500m within the next ten years. The fund, called ‘BMW i Ventures’, has been moved from NYC to Mountain View, CA, to have closer access to the technology developed in the Silicon Valley. The investment focus will be on Enabling Technology and Digital Vehicle Technology, Mobility and Digital Services, Customer Experience, and Advanced Production Technology. According to BMW, the fund has closed 15 deals in ‘mobility-related’ technologies so far. It typically acquires a minority stake in start-ups which allows it to gain access to external innovations (so-called ‘outside-in’) that secure the company’s role as a technology pioneer. Simultaneously, it provides support for start-ups by offering internal resources (so-called ‘inside-out’) such as technical expertise and access to its own network of an established car producer.
BMW delivery growth almost at a standstill in October
11 Nov 16
The brand increased deliveries by 1.1% to 166,805 in the last month which brought the ytd number to 1.65m, an increase of 5.5%. Simultaneously, Mini deliveries increased by 8.9% to 28,746 and 7.3% to 292,823, respectively. It is the American market that is causing the slow-down. Deliveries in this region were down by 12% to 36,743 in October and by 7.1% to 373,822 ytd. On the other hand, October deliveries continued rising in Europe (+6.4% to 90,574) and Asia (+6.6% to 63,006).
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
13 Feb 17
Surface Transforms* (SCE): H1 results confirm operational progress (CORP) | Premaitha Health* (NIPT): European diagnostics partnership (CORP) | Lok'nStore* (LOK): Filling existing stores, developing new ones (CORP) | Victoria* (VCP): Entry into the European flooring market (CORP) | eg solutions* (EGS): Exceptional H2 performance (CORP)
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management