Is BMW undervalued?
BMW: Full-Year Auto EBIT Margin and Free Cash Flow Guidance Downgraded on China and Tariffs. We think Bayerische Motoren Werke stock is moderately undervalued. Reflecting these pressures, BMW now expects its automotive EBIT margin in 2025 to remain within the previously guided 5% to 7% band, “more specifically in the range of 5% to 6%”. The company’s revised return on capital employed (automotive) is now projected at 8% to 10% (previously 9% to 13%).
Is BMW a good investment?
Outstanding Resale Value An often-overlooked aspect when purchasing a new vehicle is its resale value. A car is an investment, and it’s important to choose a brand that will hold its value over time. This is another area where BMW shines. BMW vehicles are known for their outstanding resale value. Compared to other luxury car brands, BMWs are often viewed as having excellent resale value due to their premium quality, high-performance engineering, and established brand reputation. This makes BMWs a sound investment, with many models retaining a high resale value even after several years of use.Tariffs and China Trouble Are Driving BMW’s Profits Off a Cliff. BMW lowered its 2025 earnings forecast, blaming slower Chinese sales and tariff delays, while maintaining focus on the U. S.What are the weaknesses of BMW? BMW’s weaknesses include a profit decline in 2024, high operational costs, dependence on China for sales, and a backlash over digital monetisation of paid features like heated seats.J. D. Power: Recent dependability studies frequently show BMW ranking higher among luxury brands, with fewer problems per 100 vehicles after three years of ownership, while Audi has at times trailed within the luxury segment.
Is BMW struggling financially?
Despite the sales growth, BMW lowered its 2025 earnings forecast due to slower growth in China and the effects of U. S. The company now expects a slight decline in group earnings before tax, down from previous guidance that earnings would remain at 2024 levels. BMW shares dropped 8. China and the fallout from President Trump’s auto tariffs.Despite the sales growth, BMW lowered its 2025 earnings forecast due to slower growth in China and the effects of U. S. The company now expects a slight decline in group earnings before tax, down from previous guidance that earnings would remain at 2024 levels.BMW shares fell more than 9% on Wednesday after the luxury automaker cut its 2025 earnings forecast, citing delays in U. S. German customs refunds and continued weakness in China as trade tensions cloud its prospects. Francis Maguire reports.BMW ‘s net profits slumped by more than a third in 2024, flagging continuing subdued demand in the Chinese market. Net profit for the year fell by an annual 36.
Who owns 50% of BMW?
While half of the company is owned by the public, the other half is owned by the Quandt family, who have been long-time BMW shareholders. Here is the breakdown of ownership: 29% = Stefan Quandt: A German industrialist and engineer. Susanne Klatten: Successful investor and sister to Stefan Quandt. There are two primary owners of big chunks of BMW shares. Stefan Quandt, a German industrialist and engineer, owns a 29 percent share and sits on the Supervisory Board of BMW. His sister, Susanne Klatten, an investor, owns a 21 percent share and is involved in the daily affairs of BMW AG.The Quandt Family: The Quandt family holds a controlling stake in BMW. This German family has been deeply involved with the company since the 1950s, with siblings Stefan Quandt and Susanne Klatten currently owning nearly 47% of BMW’s shares combined.
Is BMW better than Toyota?
When comparing the BMW brand to the Toyota brand, BMW has the advantage in the areas of horsepower, towing capacity and variety of models offered. Toyota has the advantage in the areas of new car pricing, used car pricing, depreciation, overall quality, reliability, safety and retained value. Neither brand is objectively better than the other, but they might suit slightly different buyers. We think Audis tend to be a little easier to drive, which might make them better as a commuter car, but BMWs are often a little more fun to drive, which makes them a better pick for enthusiastic drivers.High Ownership Costs (Con) Owning a BMW comes with higher-than-average ownership costs. Premium gasoline, high-end tires, imported parts, and specialized labor contribute to the overall expenses. Additionally, BMWs typically require synthetic oil changes, which further elevate maintenance costs.When comparing the BMW brand to the Toyota brand, BMW has the advantage in the areas of horsepower, towing capacity and variety of models offered. Toyota has the advantage in the areas of new car pricing, used car pricing, depreciation, overall quality, reliability, safety and retained value.