Investment of the week: BMW Group

E-mobility remains a task for the future that the German car industry has long tackled only half-heartedly – including BMW. Still the carmaker is one of the most research-intensive German companies and is generating record profits. The stock is attractive now for many reasons. 

Numerous car manufacturers are saying goodbye to petrol and diesel engines. BMW, on the other hand, wants to continue investing – in the combustion engine, but also in e-mobility and #hydrogen technologies. The company keeps all doors open: recently, production of the #iX5 Hydrogen, a fuel cell X5 built in small series, started.

BMW is one of the most research-intensive companies in the #DAX. In 2020, the company announced that it would invest around 30 billion euros in research and development by 2025 – six billion euros per year. The Quant IP analysis shows that the number of inventions has increased significantly since then. The quality of the patents filed has also risen slightly and BMW was able to improve its Competetive Rank in Quant IP’s competitive benchmarking by one position. 

The efforts in are starting to get reflected in the business figures. At the beginning of March, BMW announced that it had made a record profit of 18.6 billion euros last year – almost 50% more than the year before. Part of this is due to the majority takeover of the Chinese joint venture BMW Brilliance Automotive, which was not yet counted as part of the group in the same quarter of the previous year. Another reason for the good result was the significant increase in average sales prices, A reason for shareholders to rejoice. BMW wants to return part of the profit to shareholders through a dividend. The Munich-based company increased the #dividend by 2.70 euros to 8.50 euros per share. 
The good figures are also reflected in the share price: for the first time since 2015, the price rose above the 100 euro per share mark. With a P/E ratio (2024) of just under 7 and a dividend yield of around 8.7, the stock is still very attractive according to fundamental valuation. 

Conclusion: An exciting investment in a company that is well equipped for the future and open to various drive options. This promises offers for the needs of different customer groups – and thus opportunities for returns for investors.