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Daimler Truck Holding AG (DE:DTG)
XETRA:DTG
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Daimler Truck Holding AG
(XETRA:DTG)
Rating:73Outperform
Price Target:
€41.00
▲(7.30%Upside)
Positive Factors
Cash Flow
Industrial FCF came in strong at €3,152m for FY24 and €1,972m in 4Q24, a 14% beat vs. consensus.
Financial Performance
Daimler reported a large Q1 beat driven by a strong 14.4% margin in the North America business.
Tariffs
The 25% tariff announcement seems to exclude heavy-duty trucks, which is a better than expected outcome for US trucks.
Negative Factors
Margins
Mercedes-Benz is guiding for a 5-7% margin only, which is below consensus at the mid-point.
Order Estimates
Trucks North America missed order estimates, highlighting weak trucker sentiment in the region.
Outlook
The FY outlook was cut by approximately 10% due to weakness in North America.
Daimler Truck Holding AG (DTG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€30.26B
Dividend Yield4.97%
Average Volume (3M)1.34M
Price to Earnings (P/E)10.5
Beta (1Y)1.24
Revenue Growth-4.81%
EPS Growth-22.95%
CountryDE
Employees104,919
SectorIndustrials
Sector Strength95
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.99
Shares Outstanding791,868,300
10 Day Avg. Volume1,357,830
30 Day Avg. Volume1,343,072
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.31
Price to Sales (P/S)0.00
P/FCF Ratio-88.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€44.77Price Target Upside17.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Daimler Truck Holding AG Business Overview & Revenue Model
Company DescriptionDaimler Truck Holding AG (DTG) is a leading global manufacturer of commercial vehicles, including trucks and buses. The company operates in various sectors, primarily focusing on the development, production, and distribution of advanced commercial vehicle solutions. With a commitment to innovation and sustainability, DTG offers a range of products that cater to the diverse needs of its customers worldwide, ensuring efficiency and safety in transportation.
How the Company Makes MoneyDaimler Truck Holding AG generates revenue through the sale of commercial vehicles, including medium and heavy-duty trucks, buses, and related components. The company's revenue streams are augmented by providing financial services, maintenance, and repair services to its customers. DTG benefits from a global network of partnerships and alliances, enhancing its market reach and supply chain efficiency. The company's focus on innovation, such as electric and autonomous vehicle technologies, plays a crucial role in maintaining competitive advantage and driving future revenue growth.
Daimler Truck Holding AG Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: 2.83%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performances in North America and Buses, strategic reorganization moves, and progress in zero emission vehicles. However, significant challenges were highlighted in the Mercedes-Benz Trucks segment, particularly in Europe and Asia, along with substantial impairments and legal provisions impacting overall earnings.Q4-2024 Updates
Positive Updates
Strong Performance in Key Segments
Daimler Trucks North America and Daimler Buses delivered very strong results. North America maintained a 39.8% market share in Class 8 trucks, and Daimler Buses doubled its EBIT compared to 2023.
Cash Flow and Liquidity
Free cash flow of the industrial business was very strong, increasing to EUR3.2 billion, resulting in a net industrial liquidity of EUR8.6 billion.
Strategic Reorganization
Reorganization of Mercedes-Benz Trucks by integrating operations in India and China to push scale, improve global talent leverage, and increase export opportunities of BharatBenz trucks.
Vocational Trucks Success
Vocational strategy in North America showed success with a 35% increase in vocational Class 8 unit sales, reducing dependency on the on-highway market.
Zero Emission Vehicles Progress
Sales of battery electric trucks and buses increased by 17%, and orders grew by 22%.
Negative Updates
Mercedes-Benz Trucks Challenges
Mercedes-Benz Trucks faced mixed results, with a 20% drop in unit sales and a 35% decrease in sales in the EU 30 region, particularly impacting Germany with a 36% reduction.
Impairments and Legal Provisions
Negative non-cash impacts of impairments on joint ventures in China and cellcentric, as well as additional provisions for legacy legal proceedings, totaling EUR590 million.
Trucks Asia Weak Market
Trucks Asia reported a 22% decrease in unit sales due to weak markets in India and Indonesia, with a 10% decline in orders.
Cost Challenges in Europe
Mercedes-Benz Trucks faced challenges in adjusting the cost base in Europe due to lower demand, leading to decreased performance and resilience.
Company Guidance
In the call, Daimler Truck provided guidance for fiscal year 2025, emphasizing an anticipated operationally stable year compared to 2024. The company projected industrial business unit sales between 460,000 to 480,000 vehicles, with revenues ranging from EUR 52 billion to EUR 54 billion. The adjusted return on sales for the industrial business is expected to be between 8% and 10%, while free cash flow is predicted to decrease by 10% to 25%. For Trucks North America, unit sales are projected to be between 180,000 to 200,000 units with a return on sales adjusted between 11% and 13%. Mercedes-Benz Trucks, now including operations in India and China, is expected to have unit sales between 160,000 to 180,000 units and a return on sales adjusted between 5% to 7%. Trucks Asia anticipates unit sales between 95,000 to 115,000 units, with a return on sales adjusted of 4% to 6%. Daimler Buses expects unit sales between 25,000 to 30,000 units, with a return on sales adjusted of 8% to 10%. Financial services are anticipated to achieve a return on equity adjusted between 8% to 10%. The guidance reflects considerations of market conditions, particularly in North America and Europe, as well as strategic restructuring efforts and potential impacts from geopolitical and economic factors.Daimler Truck Holding AG Financial Statement Overview
Summary
Daimler Truck Holding AG has shown solid revenue growth and improved profitability, with increased margins and a stronger equity position. However, challenges remain in maintaining consistent revenue growth and cash flow generation, alongside notable leverage.Income Statement
Daimler Truck Holding AG has shown consistent revenue growth over the years, with a notable increase in gross profit margins from 15.2% in 2020 to 21.2% in 2023. The net profit margin also improved significantly from a negative margin in 2020 to 6.8% in 2023. EBITDA margin increased, reflecting improved operational efficiency. However, the decline in total revenue from 2022 to 2023 is a concern, indicating potential challenges in sustaining growth.75
Positive
Balance Sheet
The company has improved its equity position significantly, with stockholders' equity rising from €9.7 billion in 2020 to €22.2 billion in 2023. The debt-to-equity ratio decreased as a result, indicating lower financial leverage. Return on equity improved due to higher net income. However, the equity ratio remains moderate, and the company still carries a considerable amount of total debt, which may pose risks if not managed properly.68
Positive
Cash Flow
Operating cash flow has shown volatility, improving from negative in 2022 to positive in 2023. Free cash flow also turned positive in the latest period, indicating better cash generation. However, the cash flow from operations is still relatively low compared to net income, suggesting potential issues in cash conversion. The previous large fluctuations in free cash flow growth rates reveal the company's past challenges in maintaining consistent cash flow.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 54.08B | 55.89B | 50.95B | 39.76B | 36.01B | Gross Profit |
| 11.44B | 11.92B | 9.61B | 7.31B | 5.48B | EBIT |
| 4.16B | 4.74B | 3.62B | 2.06B | 394.00M | EBITDA |
| 5.39B | 6.83B | 5.70B | 2.85B | 1.31B | Net Income Common Stockholders |
| 2.90B | 3.77B | 2.67B | 2.35B | -143.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.76B | 8.84B | 7.09B | 7.35B | 7.50B | Total Assets |
| 73.85B | 71.21B | 63.97B | 54.80B | 49.99B | Total Debt |
| 26.38B | 22.71B | 18.83B | 15.09B | 19.41B | Net Debt |
| 19.82B | 15.65B | 12.89B | 7.84B | 17.75B | Total Liabilities |
| 51.00B | 48.99B | 43.36B | 38.38B | 41.28B | Stockholders Equity |
| 22.20B | 21.61B | 6.67B | 2.71B | 9.70B |
| Cash Flow | Free Cash Flow | |||
| 138.00M | -920.00M | -1.42B | 1.34B | 3.37B | Operating Cash Flow |
| 1.55B | 386.00M | -523.00M | 2.10B | 4.17B | Investing Cash Flow |
| -2.55B | -2.08B | -4.17B | 4.26B | -2.35B | Financing Cash Flow |
| 403.00M | 2.93B | 3.33B | -875.00M | -1.14B |
Daimler Truck Holding AG Technical Analysis
Neutral
38.21
Price Trends
35.01
Positive
37.03
Negative
35.40
Positive
Market Momentum
0.79
Positive
52.19
Neutral
19.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTG, the sentiment is Neutral. The current price of 38.21 is above the 20-day moving average (MA) of 37.07, above the 50-day MA of 35.01, and above the 200-day MA of 35.40, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 19.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DTG.
Daimler Truck Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $48.31B | 7.42 | 7.02% | 7.27% | -10.13% | -37.28% | |
73 Outperform | €30.26B | 10.51 | 12.77% | 4.97% | -4.81% | -22.95% | |
73 Outperform | €48.29B | 5.15 | 5.52% | 6.67% | 1.62% | -38.38% | |
67 Neutral | €10.75B | 2.11 | 5.44% | ― | ― | ||
65 Neutral | $4.45B | 12.14 | 5.29% | 248.12% | 4.08% | -12.28% | |
61 Neutral | $15.46B | 11.99 | 10.07% | 2.99% | -14.83% | 78.73% | |
60 Neutral | €37.84B | 51.21 | 2.02% | 5.25% | -2.04% | 2258.97% |
* Industrials Sector Average
Performance Comparison
DE:DTG
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36.88
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76.20
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Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.