Levente Tocaciu @Aguero1010: "𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐨𝐟 𝐭𝐡𝐞 𝐝𝐚𝐲 $BMW.DE..."

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𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐨𝐟 𝐭𝐡𝐞 𝐝𝐚𝐲 $BMW.DE (Bayerische Motoren Werke Aktiengesellschaft) Dear investors, Today I want to highlight a company that continues to make waves in the automotive sector. With a new CEO, a new product line, and the launch of its next-generation models, is BMW in the middle of a true transformation? 𝐁𝐌𝐖 𝐆𝐫𝐨𝐮𝐩 - develops, manufactures, and sells automobiles, motorcycles, and related parts worldwide. The business operates through three main segments: Automotive, Motorcycles, and Financial Services. Founded in 1916 and headquartered in Munich, BMW remains one of the most recognizable brands in global mobility. 𝐍𝐞𝐰 𝐂𝐄𝐎 $BMW.DE has selected Milan Nedeljković to succeed Oliver Zipse as its new CEO, with the handover scheduled in May next year. Nedeljković, who currently oversees the production division, has been appointed CEO under a contract that runs until 2031. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬 (9months in 2025) - 2025 revenue year to date (9months): 99,99bn Eur - Revenue streams: Automotive, Motorcylces, Financial Services - EBIT: 8bn Eur - EBIT margin: 8,1% - Free cashflow: 2,68bn Eur - Deliveries: 1,795,735units (2,4% increase compared to last year) - Market cap: 58bn Eur - Net debt: 91bn Eur 𝐓𝐡𝐞 𝐠𝐨𝐨𝐝 BMW’s newest generation—the Neue Klasse, starting with the new iX3—marks a major technological leap. Early reviews have been very positive, and the market is reacting accordingly: the stock has gained around 10% in the past month. With an average consumption of 15–17.1 kWh/100 km and a range of up to ~800 km, the new iX3 ranks among the most efficient EVs on the market today. Upcoming models are expected to match or exceed this benchmark as BMW rolls out the full Neue Klasse lineup. 𝐓𝐡𝐞 𝐫𝐢𝐬𝐤𝐬 𝐟𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 - Debt.Like many automakers, BMW operates with substantial debt. Refinancing that debt at today’s 3–5% rates (instead of 0–1% in previous years) puts pressure on margins. - EBIT margin down in the Automotive segment (5,2% latest) The positive side: interest rates are trending downward, and BMW’s heavy investment cycle for Neue Klasse is nearing completion. - Competition BMW faces intense competition from: $MBG.DE (Mercedes-Benz Group AG) (Mercedes-Benz) $TSLA (Tesla Motors, Inc.) (Tesla) $01211.HK (BYD Co Ltd) (BYD) Tesla benefits from massive market capitalization and scale, while BYD enjoys strong domestic support in China. BMW counters with one of the strongest global brands and very loyal customers. The long-term winner of the EV race is still unclear—and that is where both risk and opportunity lie. 𝐌𝐲 𝐯𝐢𝐞𝐰 I consider BMW a potentially attractive investment for two main reasons: - Cyclical business – The auto sector is cyclical. The best opportunities often appear when valuations are depressed but the long-term fundamentals remain intact. - Dividend policy – BMW’s commitment to distributing one-third of free cash flow means strong years deliver strong dividends, while weaker years naturally adjust payouts. However, at the current price level, I personally find other dividend-paying stocks with lower risk more attractive—even if $BMW.DE appears well-positioned in the early stages of the EV transformation. Dividend estimation for 2026: - free cashflow in range of 3,5bn and 4,5bn Eur -> 1,9Eur/share and 2,4Eur/share - dividend yield at today's stock price: 2 - 2,5% source: bmwgroup.com 𝑃𝑙𝑒𝑎𝑠𝑒 𝑟𝑒𝑚𝑒𝑚𝑏𝑒𝑟: 𝑝𝑎𝑠𝑡 𝑝𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑖𝑠 𝑛𝑜𝑡 𝑎𝑛 𝑖𝑛𝑑𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑓𝑢𝑡𝑢𝑟𝑒 𝑟𝑒𝑠𝑢𝑙𝑡𝑠. 𝐼𝑛𝑣𝑒𝑠𝑡𝑖𝑛𝑔 𝑖𝑛𝑣𝑜𝑙𝑣𝑒𝑠 𝑟𝑖𝑠𝑘, 𝑎𝑛𝑑 𝑦𝑜𝑢𝑟 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑖𝑠 𝑎𝑡 𝑟𝑖𝑠𝑘.