Further sector de-rating puts shareholder returns in focus; BMW/VW/RNO trading at or below net-cash while TSR remains robust

Research evidence excerpt

Further sector de-rating puts shareholder returns in focus; BMW/VW/RNO trading at or below net-cash while TSR remains robust

Equity Research

24 July 2026 | 5:34AM BST

EUROPE AUTOMOBILES

Further sector de-rating puts shareholder returns in focus;

BMW/VW/RNO trading at or below net-cash while TSR remains robust

Sector de-rating on fear of another round of warnings : BMW’s profit warning and Christian Frenes

+44(20)7051-8641 |

downward guidance revision have reignited investor focus on the sector’s defining christian.frenes@gs.com

Goldman Sachs International

structural headwinds, Chinese competition and elevated input costs, driving a

Robert Triulzifurther material de-rating (SXAP now down -17% YTD). We believe these concerns +44(20)7552-2281 |

are well-founded: growing Chinese headwinds, one of our key themes since initiation, robert.triulzi@gs.comGoldman Sachs International

make another round of profit warnings and negative earnings revisions across 2H26 Monika Mengting Liu, CFA

likely. We reiterate our call that investors should own EU OEMs with strong balance +44(20)7051-7601Goldman Sachs International| monika.liu@gs.com

sheets and low degrees of organizational complexity (BMW/MBG/P911), as we see Shivam Kotecha

them best equipped to reward shareholders despite negative earnings pressures. +1(332)245-7822 | shivam.kotecha@gs.com

Goldman Sachs India SPL

BMW, RNO, VW and MBG trading below or close to net cash: The market’s pricing

of European OEM distress has become severe, with 4 of 6 major OEMs in our

coverage (excluding AML and RACE) now trading close to or below net industrial

cash. Following the latest profit warning, BMW’s net financial assets represent 127%

of market capitalisation, followed by Renault at 104%, VW at 92% and MBG at 78%,