(MENAFN- Baystreet.ca)
For auto investors, picking any company whatsoever in the past ten years, besides those exclusively focused on driving the electric vehicle (EV) revolution, have certainly not done well.
The same remains with BMW (OTC:BMWYY), a company that is still trading at 2011 levels.
It's been a bumpy ride for manufacturers of internal combustion engines and the machines that transport us everywhere. Owners of brands like BMW will note that excellent quality and performance are key, but the question remains for investors everywhere: just how long is the runway for companies like BMW in a changing world with rapidly changing consumer sentiment toward climate change?
All auto manufacturers have announced plans on expanding the production of EV models over the long term, and BMW is no exception.
The value with companies like BMW continues to reside in the company's strong brand and its ability to persuade consumers to choose its models over its competitors.
In that regard, the numbers show a relatively rosy story for BMW shareholders. The company has managed to provide returns in excess of its weighted average cost of capital of more than 5% over most of the past decade, indicating the company's brand is strong and consumer interest in BMW is far from waning.
In addition to a swath of analysts covering BMW, I tend to agree that tailwinds from emerging markets are likely to continue to drive sales in the long term, as consumers in developing markets attain the ability to purchase such luxury items. With most valuation metrics below its peers, BMW is an excellent value play in today's relatively overvalued market.
Invest wisely, my friends.
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