Mercedes-Benz Group (DE:MBG)
XETRA:MBG
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Mercedes-Benz Group
(XETRA:MBG)
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Rating:57Neutral
Price Target:
€57.00
▲(10.34% Upside)
Action:DowngradedDate:03/15/26
The score is held back primarily by weakening profitability and bearish technicals (below major moving averages with negative MACD). Strong operating/free cash flow and an attractive shareholder yield (high dividend, reasonable P/E) provide meaningful support, but do not fully offset the current downtrend and margin pressure.
Positive Factors
Strong cash generation and free cash flow
Sustained operating cash flow (~€18B) and sizeable FCF (~€12.5B) provide durable funding for EV and software investments, dividends and debt servicing. Strong cash conversion anchors strategic flexibility across cycles and supports execution of long-term product and tech programs.
Negative Factors
Material margin compression
Net and EBIT margins have roughly halved from prior peaks, reflecting weaker pricing power and/or higher costs. Persistently lower margins reduce capital available for strategic investment and make returns more sensitive to cyclical volume declines and commodity cost swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and free cash flow
Sustained operating cash flow (~€18B) and sizeable FCF (~€12.5B) provide durable funding for EV and software investments, dividends and debt servicing. Strong cash conversion anchors strategic flexibility across cycles and supports execution of long-term product and tech programs.
Read all positive factors
Mercedes-Benz Group (MBG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$50.00B
Dividend Yield7.25%
Average Volume (3M)2.68M
Price to Earnings (P/E)11.7
Beta (1Y)1.10
Revenue Growth-7.08%
EPS Growth-38.11%
CountryDE
Employees163,132
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.43
Shares Outstanding962,903,700
10 Day Avg. Volume2,951,520
30 Day Avg. Volume2,680,601
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.64
Price to Sales (P/S)0.45
P/FCF Ratio4.79
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit6.14
Enterprise Value/Ebitda10.28
Forecast
1Y Price Target
$62.73Price Target Upside21.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)5.82
Revenue Forecast (FY)$132.88B
Mercedes-Benz Group Business Overview & Revenue Model
Company Description
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. The company develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand, including the Mercedes-AMG, G-...
How the Company Makes Money
Mercedes-Benz Group generates revenue primarily through the sale of vehicles, including passenger cars, vans, trucks, and buses. The company's revenue model is diversified across several key streams: vehicle sales, after-sales services, and financ...
Mercedes-Benz Group Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Mercedes-Benz highlighted significant product and technology advancements, strong cash flow, and efficiency gains. However, these were tempered by the negative impacts of tariffs, challenges in the Chinese market, and a reduced sales outlook for 2025.Positive Updates
Product and Technology Offensive
Mercedes-Benz is launching over 25 new models in the next 3 years, including the CLA and the MB.EA (Mercedes-Benz electric architecture), marking a significant product and technology offensive.
Negative Updates
Tariff Impacts on Financials
Tariffs had a mid-3-digit million euro impact on Q2, affecting EBIT and leading to a 150 basis points reduction in full-year guidance.
Read all updates
Q2-2025 Updates
Positive
Negative
Product and Technology Offensive
Mercedes-Benz is launching over 25 new models in the next 3 years, including the CLA and the MB.EA (Mercedes-Benz electric architecture), marking a significant product and technology offensive.
Read all positive updates
Company Guidance
During the Mercedes-Benz conference call, significant guidance was provided regarding financial and strategic performance. The company produced a solid financial performance in Q2 2025, with a 5.1% adjusted return on sales for cars, impacted by tariffs estimated to have a mid-3-digit million euro effect. The company achieved a healthy 10.4% return on sales for vans, citing minor tariff impacts. Harald Wilhelm, CFO, emphasized a robust cash flow generation, achieving a EUR 1.9 billion industrial cash flow, covering the dividend payout. The guidance for the fiscal year 2025 anticipates car sales significantly below 2024 levels, primarily due to challenges in China. The expected return on sales adjusted for cars remains within a 4% to 6% range, including a 150 basis point tariff impact. The company is also executing a product and technology offensive, planning to launch over 25 models in the next three years, with the first vehicle of the Mercedes-Benz electric architecture (MB.EA) making its debut at the International Auto Show. They are focusing on advancing their electric and autonomous driving technologies while managing challenges in the current economic environment.Mercedes-Benz Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
56
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 132.21B | 145.59B | 152.39B | 150.02B | 133.89B |
| Gross Profit | 22.71B | 28.58B | 35.00B | 34.02B | 30.68B |
| EBITDA | 21.62B | 21.50B | 27.44B | 27.25B | 23.22B |
| Net Income | 5.14B | 10.21B | 14.26B | 14.50B | 23.01B |
Balance Sheet | |||||
| Total Assets | 255.47B | 265.01B | 263.02B | 260.01B | 259.83B |
| Cash, Cash Equivalents and Short-Term Investments | 19.19B | 21.60B | 22.12B | 23.92B | 29.83B |
| Total Debt | 100.01B | 112.80B | 109.43B | 111.84B | 125.84B |
| Total Liabilities | 161.23B | 171.38B | 170.21B | 173.47B | 186.66B |
| Stockholders Equity | 93.26B | 92.63B | 91.77B | 85.42B | 71.95B |
Cash Flow | |||||
| Free Cash Flow | 12.52B | 9.07B | 6.26B | 13.41B | 19.97B |
| Operating Cash Flow | 18.01B | 17.73B | 14.47B | 16.89B | 24.55B |
| Investing Cash Flow | -9.20B | -8.75B | -7.32B | -3.45B | -6.23B |
| Financing Cash Flow | -10.45B | -10.75B | -8.39B | -19.03B | -19.06B |
Mercedes-Benz Group Technical Analysis
Negative
51.66
Price Trends
57.15
Negative
58.17
Negative
55.20
Negative
Market Momentum
-1.62
Positive
31.94
Neutral
12.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MBG, the sentiment is Negative. The current price of 51.66 is below the 20-day moving average (MA) of 55.24, below the 50-day MA of 57.15, and below the 200-day MA of 55.20, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:MBG.
Mercedes-Benz Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $50.00B | 11.66 | 5.56% | 7.25% | -7.08% | -38.11% | |
57 Neutral | €9.70B | 2.84 | -60.89% | 4.81% | -39.68% | -659.81% | |
56 Neutral | €43.72B | 7.09 | 4.00% | 6.13% | 0.49% | -45.70% | |
54 Neutral | $46.20B | 7.84 | 7.56% | 4.64% | -8.40% | -11.54% | |
50 Neutral | €11.95B | -82.38 | -1.10% | 2.88% | -38.10% | -75.32% | |
45 Neutral | €6.54B | -18.63 | -34.39% | 3.15% | 45.16% | -790.24% |
* Consumer Cyclical Sector Average
DE:MBG
Mercedes-Benz Group
51.66
-2.87
-5.26%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.