BMW Stock Looks Cheap, But The Russian Aluminum Ban Is A Real Risk


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Althom/iStock Editorial via Getty Images My Thesis Bayerische Motoren Werke Aktiengesellschaft (OTCPK:BMWYY) (OTCPK:BAMXF) stands as one of the foremost automobile companies globally. Despite appearing attractively valued based on absolute metrics, this seemingly modest valuation is attributable to concerns surrounding future competition-driven growth. Adding to this challenge are potential elevated production costs, a consequence that, in my estimation, could be anticipated following the imposition of sanctions on Russian aluminum. The company's profit margins will probably be adversely affected in this case, casting doubt on the accuracy of current 2025 EPS forecasts. My Reasoning Let me start with BMW's recent financials, which...