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Last update on 2024-06-04

Bayerische Motoren Werke (BMW.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 7/9)

Bayerische Motoren Werke (BMW.DE) received a Piotroski F-Score of 7/9 for 2023, indicating strong financial health in profitability, liquidity, and efficiency.

Knowledge hint:
The Piotroski F-Score is a number between 0 to 9 which reflects the strength of a company's financial position. It is based on 9 criteria involving profitability, liquidity, and leverage. This model helps investors identify stocks that are strong, undervalued investments.
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Short Analysis - Piotroski Score: 7

We're running Bayerische Motoren Werke (BMW.DE) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

Criteria
Company has a positive net income?
1
Company has a positive cash flow?
1
Return on Assets (ROA) are growing?
0
Operating Cashflow are higher than Netincome?
1
Leverage is declining?
1
Current Ratio is growing?
0
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
1

The summarized Piotroski F-Score analysis for Bayerische Motoren Werke (BMW.DE) is as follows: BMW achieves a high Piotroski F-Score of 7 out of 9, highlighting its strong financial health. The company shows positive net income and cash flow from operations, indicating robust profitability and operational efficiency. Its leverage has been decreasing, and it has a growing gross margin and asset turnover ratio. However, BMW has seen a decline in Return on Assets (ROA) and a slight reduction in the Current Ratio, which indicates some areas for improvement.

Insights for Value Investors Seeking Stable Income

Based on the Piotroski F-Score of 7, BMW.DE appears to be a strong candidate for investment, showing good profitability and operational metrics. Potential investors may find it worth researching further into BMW’s stock as the overall indicators present a positive financial footing with minor areas needing attention. The high score suggests it is undervalued, but checking for any potential anomalies, like the odd data regarding shares, is advisable before making any decisions.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Profitability of Bayerische Motoren Werke (BMW.DE)

Company has a positive net income?

Net income performance is critical as it measures a company's profitability, reflecting its fiscal health and stability.

Historical Net Income of Bayerische Motoren Werke (BMW.DE)

As of 2023, Bayerische Motoren Werke (BMW.DE) reports a substantial €11,290,000,000 in net income. This impressive figure marks positive profitability, deserving an additional point in the Piotroski Evaluate. Analyzing historical data, BMW's net income has shown considerable growth over the past two decades, except for fluctuations during economic downturns (noted in 2008 and 2009). In recent years, BMW continued to rebound strongly from the 2020 fiscal impacts by consistently gaining revenue. Such financial strength firmly supports the company's positive economic trajectory in assessing its overall fiscal health.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the cash generated or consumed by a company’s core business activities, reflecting its ability to generate sufficient cash flow to maintain operations.

Historical Operating Cash Flow of Bayerische Motoren Werke (BMW.DE)

In 2023, Bayerische Motoren Werke (BMW.DE) reported a CFO of €17.542 billion, which is positive. This indicates that BMW's core operations are generating substantial cash flow, adding 1 point for this criterion. Historically, BMW has consistently maintained a positive CFO, with significant fluctuations, especially noteworthy in 2018 when the CFO was €13.251 billion and peaked at €23.523 billion in 2022. Thus, the positive CFO in 2023 is a good sign for BMW's operational efficiency and financial health.

Return on Assets (ROA) are growing?

Change in ROA (Return on Assets) assesses a company's ability to generate profit from its assets. It's calculated by dividing net income by total assets.

Historical change in Return on Assets (ROA) of Bayerische Motoren Werke (BMW.DE)

In comparing BMW's ROA of 0.0454 in 2023 to 0.0753 in 2022, it is evident that there has been a decline. Thus, BMW does not earn a point in this category. This decrease in ROA indicates a reduced efficiency in utilizing assets to generate profits, an important measure of management effectiveness. Additionally, BMW's 2023 ROA of 0.0454 stands considerably lower than the 2023 industry median of 0.1825, signifying a comparative underperformance. Over the last 20 years, fluctuations in ROA have been observed with the operating cash flow peaking at EUR 23,523,000,000 in 2022. Such variations suggest volatility in operational efficiency, influenced possibly by market dynamics and internal challenges. Therefore, BMW's decline in ROA combined with inferior performance relative to industry peers presents a concerning trend for stakeholders.

Operating Cashflow are higher than Netincome?

This criterion assesses whether a company’s operational performance (cash generation from operations) supports its accounting income.

Historical accruals of Bayerische Motoren Werke (BMW.DE)

In 2023, BMW's operating cash flow stood at €17.542 billion, surpassing its net income of €11.29 billion. This indicates positive cash flow generation from operations, which is higher than net profits, thereby scoring 1 point. A higher operating cash flow compared to net income suggests stronger earnings quality and liquidity position. On the Piotroski F-Score framework, this points to BMW’s efficiency in translating income into actual cash, further backed by historical data trends showing that BMW has consistently generated robust operating cash flows over the last 20 years, peaking at €23.523 billion in 2022.

Liquidity of Bayerische Motoren Werke (BMW.DE)

Leverage is declining?

Change in leverage assesses the company's ability to manage its debt. Decreasing leverage suggests improved financial stability, signaling lower risk for creditors and investors.

Historical leverage of Bayerische Motoren Werke (BMW.DE)

BMW's leverage has decreased from 0.2185 in 2003 to 0.1818 in 2023. This trend suggests that over the past two decades, BMW has been gradually reducing its reliance on debt for financing. The significant decrease from 0.1872 in 2022 to 0.1818 in 2023 is particularly notable, signaling enhanced financial stability. Despite the general decreasing trend, periods like 2008 and 2016 saw spikes in leverage, but the overall long-term trend is favorable, earning BMW 1 point in the Piotroski analysis for 2023.

Current Ratio is growing?

The Current Ratio measures a company's ability to pay short-term obligations with its short-term assets. It is essential as it indicates liquidity.

Historical Current Ratio of Bayerische Motoren Werke (BMW.DE)

For BMW, the Current Ratio slightly decreased from 1.0922 in 2022 to 1.0916 in 2023. Although this change is minimal, it suggests a marginally reduced capacity to cover short-term liabilities. Over the past 20 years, BMW's Current Ratio has hovered near the industry median in most periods. However, it remains below the industry median in 2023 (1.262), indicating room for improvement in liquidity management. Thus, in this criterion, no point is added.

Number of shares not diluted?

Changes in outstanding shares reflect a company’s capital alteration and can indicate management’s strategy on financing.

Historical outstanding shares of Bayerische Motoren Werke (BMW.DE)

From the data, it is evident that BMW's outstanding shares dropped sharply from 597,924,318 in 2022 to 0 in 2023. A drop to zero is anomalous and might suggest a radical restructuring or potentially missing data for 2023. Typically, a decrease in outstanding shares can be positive, indicating share buybacks or reduction. This would usually score 1 point, yet in this case, the 'zero' suggests data verification is needed. Thus, we tentatively score this criterion with a 0 and recommend consulting more accurate data.

Operating of Bayerische Motoren Werke (BMW.DE)

Cross Margin is growing?

Change in Gross Margin indicates the company's efficiency in producing goods or services; an increase suggests improved profitability or cost management.

Historical gross margin of Bayerische Motoren Werke (BMW.DE)

BMW's Gross Margin increased from 0.1723 in 2022 to 0.1909 in 2023. This rise implies an improvement in profitability or cost efficiency. Over the last 20 years, BMW's Gross Margin fluctuated, dipping as low as 0.1051 in 2009 during the financial crisis and peaking at 0.2317 in 2004. The 2023 Gross Margin of 0.1909 surpasses the industry median of 0.1825, indicating BMW's competitive advantage in managing production costs. Therefore, BMW earns 1 point for the increase in Gross Margin for Piotroski Analysis.

Asset Turnover Ratio is growing?

Asset turnover measures a firm's efficiency in using its assets to generate sales revenue and serves as an indicator of operational efficiency.

Historical asset turnover ratio of Bayerische Motoren Werke (BMW.DE)

In 2023, BMW's asset turnover is 0.6247, which is higher compared to 0.5986 in 2022. This indicates an improvement in how effectively the company uses its assets to generate revenue. This trend is positive as it suggests enhanced operational efficiency. Over the past 20 years, BMW has seen fluctuations in asset turnover, with values ranging from 0.4452 in 2020 to 0.7099 in 2003. The recent increase grants BMW 1 point in the Piotroski analysis. 0.6247 is one of the highest values in the last decade, underscoring a robust operational recovery post-2020.


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