Mercedes-Benz Group (MBG) AI Stock Analysis

• Market Cap: $57.35B
• Dividend Yield: 7.22%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.16
• Revenue Growth: -7.08%
• EPS Growth: -38.11%
• Country: DE
• Employees: 163,132
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 1.22
• Shares Outstanding: 962,903,700
• 10 Day Avg. Volume: 2,136,298
• 30 Day Avg. Volume: 2,132,947
• PEG Ratio: -0.22
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 5.94
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 5.41
• Enterprise Value/Ebitda: 8.50
• 1Y Price Target: $62.08
• Price Target Upside: 4.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €64.00 ▲(7.45% Upside)

Mercedes-Benz Group's stock score is driven by strong technical indicators and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, financial performance concerns, such as declining revenue and margins, and mixed earnings call sentiment due to external challenges, moderate the overall score.

Positive Factors

Product and Technology Offensive

The launch of over 25 new models, including electric vehicles, strengthens Mercedes-Benz's market position and innovation leadership, catering to evolving consumer preferences and regulatory trends towards sustainability.

Strong Cash Flow

Robust cash flow generation supports Mercedes-Benz's ability to invest in new technologies and maintain financial stability, ensuring long-term operational flexibility and shareholder returns.

Electric Vans Growth

The large order from Amazon for electric vans underscores the demand for Mercedes-Benz's electric offerings, reinforcing its competitive edge in the growing electric vehicle market.

Negative Factors

Revenue Decline

The decline in revenue indicates potential challenges in maintaining market share and pricing power, which could impact long-term profitability if not addressed.

Challenging Market in China

The challenging market environment in China poses a risk to Mercedes-Benz's growth, given China's significance as a major automotive market, potentially affecting future sales and profitability.

Tariff Impacts

Significant tariff impacts on financials could strain margins and profitability, necessitating strategic adjustments to mitigate long-term financial risks associated with trade policies.

Mercedes-Benz Group Business Overview & Revenue Model

Company Description

Mercedes-Benz Group (MBG) is a global automotive corporation headquartered in Stuttgart, Germany, specializing in the design, manufacture, and sale of premium automobiles, buses, and trucks. The company operates primarily in the automotive sector, with a strong emphasis on luxury vehicles, electric mobility, and innovative automotive technologies. Its core products include the Mercedes-Benz passenger cars, smart city vehicles, and a wide range of commercial vehicles under various brands. Additionally, MBG has made significant strides in sustainability and digital services, enhancing its portfolio with advanced driver-assistance systems and connectivity solutions.

How the Company Makes Money

Mercedes-Benz Group generates revenue through multiple key streams, primarily from the sale of vehicles, including luxury cars, SUVs, and commercial vehicles. The company's revenue model is bolstered by its extensive global distribution network, which includes both direct sales and partnerships with dealerships. Additionally, MBG earns income from financing and leasing services, providing customers with various options for vehicle acquisition. The company also benefits from aftersales services, including maintenance, parts sales, and warranties. Strategic partnerships, such as collaborations with technology firms for electric vehicle development and autonomous driving technology, further enhance its earnings potential, as does its commitment to expanding into the electric and hybrid vehicle market, capitalizing on the growing demand for sustainable transportation solutions.

Mercedes-Benz Group Financial Statement Overview

Summary

Mercedes-Benz Group demonstrates solid financial health with strong profitability and cash flow generation. However, recent trends in revenue decline and reduced margins could pose challenges if not addressed. The balance sheet shows improved leverage, but declining ROE in the TTM period suggests potential areas for improvement.

Income Statement

Mercedes-Benz Group shows a strong gross profit margin and consistent profitability, although recent revenue growth has been negative. The TTM data indicates a slight decline in margins compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. However, the return on equity has decreased in the TTM period, suggesting a potential decline in shareholder returns.

Cash Flow

Operating cash flow remains strong, but free cash flow growth has been negative in the TTM period. The free cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.97B	145.59B	152.39B	150.02B	133.89B	121.78B
Gross Profit	24.45B	28.58B	35.00B	34.02B	30.68B	20.19B
EBITDA	15.57B	21.50B	27.44B	27.25B	23.22B	15.39B
Net Income	6.25B	10.21B	14.26B	14.50B	23.01B	3.63B
Balance Sheet
Total Assets	255.84B	265.01B	263.02B	258.89B	258.62B	284.18B
Cash, Cash Equivalents and Short-Term Investments	22.50B	21.60B	18.99B	20.06B	24.32B	25.51B
Total Debt	102.34B	112.80B	87.21B	84.41B	93.85B	114.76B
Total Liabilities	163.23B	171.38B	170.21B	173.47B	186.66B	223.49B
Stockholders Equity	91.71B	92.63B	91.77B	85.42B	71.95B	60.69B
Cash Flow
Free Cash Flow	14.71B	9.07B	6.26B	13.41B	19.97B	16.59B
Operating Cash Flow	20.80B	17.73B	14.47B	16.89B	24.55B	22.33B
Investing Cash Flow	-11.09B	-8.75B	-7.32B	-3.45B	-6.23B	-6.42B
Financing Cash Flow	-9.97B	-10.75B	-8.39B	-19.03B	-19.06B	-10.75B

Mercedes-Benz Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MBG, the sentiment is Positive. The current price of 59.56 is above the 20-day moving average (MA) of 56.53, above the 50-day MA of 54.29, and above the 200-day MA of 52.48, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 89.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MBG.

Mercedes-Benz Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMW	75 Outperform	$52.29B	7.78	7.35%	4.85%	-8.40%	-11.54%
MBG	74 Outperform	$57.35B	9.19	6.56%	7.22%	-7.08%	-38.11%
VOW3	74 Outperform	€46.08B	6.87	4.00%	6.51%	0.49%	-45.70%
CON	69 Neutral	$13.26B	8.90	―	2.98%	-38.10%	-75.32%
KBX	62 Neutral	€12.92B	29.70	14.52%	2.06%	-1.77%	-28.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PAH3	55 Neutral	€10.62B	-0.49	-47.46%	5.10%	-54.23%	-543.31%

Mercedes-Benz Group Corporate Events

Mercedes-Benz Group Faces Financial Challenges Amid Strategic Shifts

Mercedes-Benz Group AG, a leading global automobile manufacturer, specializes in luxury vehicles and commercial vans, with a strong focus on innovation in electric mobility and vehicle software. The company’s recent earnings report for the third quarter of 2025 highlights a challenging financial period, marked by a decline in revenue and profitability compared to the previous year. Key financial metrics show a 7% decrease in revenue to €32.1 billion and a significant 70% drop in EBIT to €750 million, reflecting the impact of exchange rate fluctuations, reduced sales in China, and increased tariff expenses. Despite these challenges, the company reported a 10% increase in sales of electrified vehicles, demonstrating its commitment to sustainable mobility. Looking forward, Mercedes-Benz Group remains focused on strategic initiatives to enhance efficiency and competitiveness, including a new product offensive and investments in research and development. The management anticipates navigating the uncertain macroeconomic environment while continuing to drive innovation and growth in the electric vehicle segment.