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Daimler Truck Holding AG (DE:DTG)
XETRA:DTG
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Daimler Truck Holding AG
(XETRA:DTG)
63Neutral
Positive Factors
Financial Performance
Mercedes-Benz adj. EBIT came in approximately 45% ahead of consensus with a surprisingly strong 8.1% margin.
Tariff Exclusion
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.
Tariff Risk
There is a risk that broader tariffs, including trucks, could still be imposed, contributing to macro uncertainty.
Daimler Truck Holding AG (DTG) vs. S&P 500 (SPY)
Market Cap
€28.16B
Dividend Yield5.34%
Average Volume (3M)1.83M
Price to Earnings (P/E)9.8
Beta (1Y)1.22
Revenue Growth-3.24%
EPS Growth-21.18%
CountryDE
Employees104,919
SectorIndustrials
Sector Strength77
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.95
Shares Outstanding791,868,300
10 Day Avg. Volume1,306,617
30 Day Avg. Volume1,829,744
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€44.60Price Target Upside25.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Daimler Truck Holding AG Business Overview & Revenue Model
Company DescriptionDaimler 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 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 Financial Statement Overview
Summary
Daimler Truck Holding AG has demonstrated improvements in profitability and equity position, with notable revenue growth. However, challenges remain in sustaining revenue growth and cash conversion efficiency.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.68
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 | EBIT |
| 4.18B | 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 | |||
| 8.57B | 8.84B | 7.09B | 7.35B | 7.50B | Total Assets |
| 73.85B | 71.21B | 63.97B | 54.80B | 49.99B | Total Debt |
| 5.44B | 22.71B | 18.83B | 15.09B | 19.41B | Net Debt |
| -926.00M | 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
Negative
35.56
Price Trends
37.63
Negative
38.52
Negative
36.71
Negative
Market Momentum
-0.40
Negative
48.93
Neutral
79.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTG, the sentiment is Negative. The current price of 35.56 is above the 20-day moving average (MA) of 34.14, below the 50-day MA of 37.63, and below the 200-day MA of 36.71, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DTG.
Daimler Truck Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
DE:DTG
Daimler Truck Holding AG
35.41
-3.97
-10.08%
BAMXF
Bayerische Motoren Werke Aktiengesellschaft
86.24
-24.72
-22.28%
GB:0BFA
BASF SE
42.51
-4.61
-9.78%
GB:0JHU
Porsche Automobil Holding
36.64
-10.38
-22.08%
GB:0P6O
Volkswagen
95.62
-13.29
-12.20%
CTTAF
Continental Aktiengesellschaft
81.01
17.94
28.44%
Daimler Truck Holding AG Earnings Call Summary
Earnings Call Date:Mar 14, 2025
(Q4-2024)
| % Change Since: -8.75%|
Next Earnings Date:May 14, 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.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.