BMW Group

Fundamental analysis
The BMW Group comprises BMW (cars and motorcycles), Mini (cars) and Rolls-Royce (cars). The company focuses on the luxury and upper mid-range car segment. BMW is headquartered in Munich, but has production facilities around the world.
Like other car companies, the company is switching to partial production of electric cars. In addition to the models already in production, such as the i3, the company has high hopes for a new program called NEUE KLASSE. This focuses on clean electric mobility and will be launched in 2025.
BMW has big goals with electric mobility. It wants to sell more than 10 million pure electric cars by 2030, and these are expected to account for more than 50% of the brand’s total sales. Thus, large investments in individual factories are expected. The company is interesting because it has a high EBIT margin of 8-10%.
The Mini and Rolls-Royce brands will also switch to electric vehicles.
Results
The company delivered a total of 2,399,632 cars for 2022. This was down 4.8% from 2021. However, the company’s turnover rose to €142,610m, up 28% from 2021. Profit rose 49% from 2021 to €18,582m. This beat analysts’ estimates. Such a jump is due to improved pricing of new cars and used car sales. There is also a rise in the number of cars that are financed through leasing, credit and other financial products, where the company has a higher margin than for cars.
Thanks to the good results, management is proposing a dividend of €8.5, or less than 10% of the share value. Furthermore, management plans to continue to repurchase shares. This may help the share price up in the short term. On the other hand, this is just a proposal that has not been approved yet.
Technical analysis
The stock has recently bounced off the important resistance at €100 per share. This price has held for more than two years.
According to the moving averages, the stock is in a multi-month uptrend. This sets it apart from many previously other stocks that usually enter an uptrend in recent days or weeks.
The RSI is in the neutral zone.
Conclusion
As long as the resistance holds at 100¢ per share, it is difficult to gauge the possible direction. The large dividend and interesting economic forecasts have failed to convince investors to buy more. If the price of €100 per share is broken and a dividend of €8.5 per share is approved, the room for growth is large. However, if resistance remains unbroken, the stock could stagnate or even fall by a few euros.