Daimler Truck Holding AG (DTG) AI Stock Analysis

• Market Cap: €30.17B
• Dividend Yield: 4.35%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.18
• Revenue Growth: -4.81%
• EPS Growth: -22.95%
• Country: DE
• Employees: 104,919
• Sector: Industrials
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): 0.99
• Shares Outstanding: 791,868,300
• 10 Day Avg. Volume: 1,335,489
• 30 Day Avg. Volume: 1,342,763
• PEG Ratio: 0.65
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €44.82
• Price Target Upside: 17.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: €43.00 ▲(12.86%Upside)

The overall score reflects strong valuation metrics and positive technical analysis, suggesting potential for growth and income generation. However, financial performance indicates potential risks due to revenue sustainability and cash flow volatility, which need to be addressed.

Positive Factors

Cash Flow

Industrial FCF came in strong at €3,152m for FY24 and €1,972m in 4Q24, a 14% beat vs. consensus.

Earnings

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

Cost Disadvantage

Daimler could face a cost disadvantage compared to Volvo, with a potential 40 basis points impact due to assembly not being fully in the US.

Orders

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 Business Overview & Revenue Model

Company Description

Daimler Truck Holding AG manufactures and sells medium- and heavy-duty trucks and buses in Europe, North America, Asia, Latin America, and internationally. It operates through five segments: Mercedes-Benz, Trucks North America, Trucks Asia, Daimler Buses, and Financial Services. The company offers light, medium, and heavy-duty trucks; city and intercity buses, touring coaches, and bus chassis; industrial engines; and special vehicles that are primarily used in municipal applications, as well as electric vehicles and used commercial vehicles. It also provides various financial services, such as leasing, hire purchase, and insurance products under the Daimler Truck Financial Services brand name. In addition, the company offers connectivity solutions under the Detroit Connect, Fuso Connect, Mercedes-Benz Uptime, and Fleetboard brands; and aftersales services, such as maintenance and repair, as well as sells spare parts. It provides trucks and buses under the Mercedes-Benz, Freightliner, Western Star, FUSO, BharatBenz, Setra, and Thomas Built Buses brand names. The company was founded in 1896 and is headquartered in Leinfelden-Echterdingen, Germany.

How the Company Makes Money

Daimler 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 Financial Statement Overview

Summary

Daimler Truck Holding AG has shown solid improvements in profitability and equity position. However, the decline in total revenue from 2022 to 2023 and challenges in cash conversion efficiency present concerns for future growth. Cash flow volatility also indicates a need for more consistent management.

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.

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.

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.

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
EBITDA	5.39B	6.83B	5.70B	2.85B	1.31B
Net Income	2.90B	3.77B	2.67B	2.35B	-143.00M
Balance Sheet
Total Assets	73.85B	71.21B	63.97B	54.80B	49.99B
Cash, Cash Equivalents and Short-Term Investments	8.76B	8.84B	7.09B	7.35B	7.50B
Total Debt	26.38B	22.71B	18.83B	15.09B	19.41B
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

• Technical Analysis Sentiment: Positive
• Last Price: 38.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTG, the sentiment is Positive. The current price of 38.1 is above the 20-day moving average (MA) of 37.89, above the 50-day MA of 36.40, and above the 200-day MA of 35.98, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DTG.

Daimler Truck Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTG	75 Outperform	€30.17B	10.66	12.77%	4.35%	-4.81%	-22.95%
Sector *	58 Neutral	$1.34B	4.06	-2.93%	11.64%	3.38%	-51.94%
BAMXF		$51.14B	7.56	7.02%	5.65%	―	―
0BFA		€37.08B	51.18	2.02%	4.55%	―	―
0JHU		€10.26B	2.01		4.92%	―	―
0P6O		€45.50B	4.82	5.52%	6.18%	―	―
CTTAF		$16.61B	12.06	10.07%	2.98%	―	―