Bayerische Motoren Werke AG (BMW.DE) stock analysis
In our weekly check, Bayerische Motoren Werke AG is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 8 pass, warnings: 7, red flags: 9.
About Bayerische Motoren Werke AG
Bayerische Motoren Werke AG is a Consumer Cyclical company (Auto - Manufacturers) based in Germany, listed on XETRA as BMW.DE.
What our checks show for BMW.DE
Red flags
- Net debt is 5.4x a year of EBITDA (debt/equity 1.22). That limits room in a downturn and raises refinancing risk.
- The net margin fell by 6.2 points over 5 years, to 4.9%: the company keeps less of each sale as profit.
- The gross margin fell by 11.1 points, to 14.3%: costs are rising faster than prices.
- Revenue fell 3.5% a year over the last 3 years.
- The net margin is only 4.9%: little room if costs rise.
- Free cash flow is negative (-4.3% of revenue): the business spends more cash than it brings in.
- The stock has fallen as much as 69% from a peak. Would you have held through that?
- Return on capital (ROCE) is only 4.2%.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Operating cash flow is only 0.6x net profit: part of the reported profit does not arrive as cash.
- Analysts expect earnings per share to shrink about 0.6% a year.
- Analysts expect only about 2% a year of growth in revenue.
- Analysts expect the net margin to shrink by 0.4 points from today's 4.9%.
- Earnings per share fell 27.6% a year over the last 3 years.
- Net profit fell 29.4% a year over the last 3 years.
- The stock is still below its previous peak.
Strengths
- Operating profit covers interest 16.6 times over.
- The price is 5.5 times earnings (P/E), reasonable for its growth.
- A large company: market value $38.49 billion.
Next earnings report: 2026-11-04
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Questions
What grade does Bayerische Motoren Werke AG (BMW.DE) have?
In our weekly check, Bayerische Motoren Werke AG is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 8 pass, warnings: 7, red flags: 9. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of BMW.DE stock?
This week's biggest flags for Bayerische Motoren Werke AG: High debt, Margins falling, Gross margin falling. In total 16 of 24 checks show a warning or a red flag.
What does Bayerische Motoren Werke AG do?
Bayerische Motoren Werke AG is a Consumer Cyclical company (Auto - Manufacturers) based in Germany, listed on XETRA as BMW.DE.
When does Bayerische Motoren Werke AG report earnings next?
The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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