BMW reported earnings per share of $2.49, missing the estimated $3.73, with revenue at approximately $37.7 billion.
The company anticipates a modest increase in sales for the year, though earnings are expected to remain flat due to recent tariffs and ongoing challenges in China.
BMW’s financial metrics reveal a low valuation, with a P/E ratio of approximately 6.14 and a price-to-sales ratio of about 0.34.
Bayerische Motoren Werke AG, known as BMW, is a leading German automobile manufacturer. Trading under the symbol BAMXF on the PNK exchange, BMW is renowned for its luxury vehicles and motorcycles. The company faces competition from other automotive giants like Mercedes-Benz and Audi. Despite its strong brand presence, BMW is currently navigating financial challenges.
On March 14, 2025, BMW reported earnings per share of $2.49, missing the estimated $3.73. The company’s revenue was approximately $37.7 billion, falling short of the expected $42.98 billion. This shortfall is partly due to ongoing challenges in China and costs related to tariffs and supply chain issues, as highlighted by Reuters.
BMW anticipates a modest increase in sales for the year, but earnings are expected to remain flat. The recent tariffs on U.S. imports, effective until March 12, are projected to decrease the company’s earnings margin in the automotive sector by one percentage point. This financial impact underscores the challenges BMW faces in maintaining profitability.
In 2024, BMW experienced a significant decline in its annual net profit, dropping 37% to 7.68 billion euros, or approximately $8.32 billion. Weaker demand in key markets like China and Germany contributed to this downturn. The company has emphasized the “continuing subdued demand in the Chinese market” as a major factor affecting its financial performance.
Despite these challenges, BMW’s financial metrics indicate a relatively low valuation. The price-to-earnings (P/E) ratio is approximately 6.14, and the price-to-sales ratio stands at about 0.34. The enterprise value to sales ratio is around 0.22, and the enterprise value to operating cash flow ratio is approximately 6.05. The earnings yield is about 16.28%, and the current ratio is approximately 1.10, suggesting reasonable short-term financial health.
