The BMW stock offers chances and a dividend.

Last Updated: 5. November 2023By

The BMW stock has been able to gain around 3 percent after a weak second half of October following the release of the figures for the 3rd quarter – with this, the paper is currently one of the winners in the DAX (as of November 3, around 10 am). Above all, the result and the margin have impressed the premium car maker and exceeded expectations. BMW also confirmed the forecast for the full year in the process. After very mixed months, the BMW share has further catching-up potential – first of all, the paper has to climb back over the 100 euro mark.

BMW with strong Q3 figures Overall, the quarterly figures of the DAX group were well received. On the sales side, BMW increased by around 3.4 percent compared to the same quarter of the previous year to just under 38.5 billion euros in Q3. Even better was the EBIT: This was 4.35 billion euros in the 3rd quarter, which was 18 percent above the previous year’s figure. In the core business Automobile, EBIT increased by around 9 percent to around 3.14 billion euros.

The EBIT margin in the main segment Automobile could also increase stronger than expected and was at 9.8 percent (after 8.9 percent in the previous year). At the same time, the share of electric models delivered increased to around 15 percent. After 9 months of the business year, the EBIT margin in the Automobile segment is 10.3 percent.

Given these figures, it is not surprising that the BMW management has confirmed the targets for 2023 – it expects an EBIT margin in the automotive business of between 9 and 10.5 percent.

BMW stock: There is room for improvement – dividend and price potential The BMW stock has been able to gain after the Q3 figures. Compared to the prices from June and July, however, there is still more upside. At the beginning of August, the BMW paper fell below the 100 euro mark and has not been able to recover from this despite a positive business development, especially in the high-margin premium segment.

In view of the Q3 figures, the targets for 2023 and the medium-term perspective with fresh models of the „New Class“, the prospects for the BMW stock are at least decent. A generous dividend yield of currently around 9 percent as well as a comparatively attractive valuation speak in favour of the title. Long-term investors should keep an eye on the BMW stock.