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Mercedes-Benz Group
(OTC:MBG)
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Rating:60Neutral
Price Target:
€49.00
▲(9.42% Upside)
Action:Reiterated
Date:07/30/26
Overall score reflects pressured fundamentals (sharp TTM revenue decline and margin compression) and a weaker longer-term price trend, partially offset by attractive valuation (low P/E and high dividend yield). The latest earnings call was moderately constructive—reiterated guidance, strong shareholder returns and Financial Services outperformance—but China weakness and expected H2 margin/cost headwinds remain key risks.
Positive Factors
Cash generation
Consistent operating and free cash flow provide durable internal funding for product ramps, electrification capex and shareholder returns. Strong net industrial liquidity (~€30B) cushions cyclical volatility, supports execution of multi-quarter investments and short-term buybacks without immediate capital markets reliance.
Negative Factors
Revenue & margin deterioration
Material revenue decline and compressed margins weaken the company's earnings power and return metrics. Lower margins reduce reinvestment capacity and free cash flow conversion, constraining ability to fund EV ramps and productivity initiatives without eroding profitability over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow provide durable internal funding for product ramps, electrification capex and shareholder returns. Strong net industrial liquidity (~€30B) cushions cyclical volatility, supports execution of multi-quarter investments and short-term buybacks without immediate capital markets reliance.
Read all positive factors
Mercedes-Benz Group (MBG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€45.00B
Dividend Yield7.49%
Average Volume (3M)2.42M
Price to Earnings (P/E)8.9
Beta (1Y)1.15
Revenue Growth-7.07%
EPS Growth-24.21%
CountryDE
Employees158,324
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)5.25
Shares Outstanding962,903,700
10 Day Avg. Volume1,896,121
30 Day Avg. Volume2,420,397
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)0.64
Price to Sales (P/S)0.45
P/FCF Ratio4.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€56.00Price Target Upside25.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)5.45
Revenue Forecast (FY)€129.89B
Mercedes-Benz Group Business Overview & Revenue Model
Company Description
Mercedes-Benz Group AG is a prominent global automotive corporation, conducting operations both in Germany and worldwide. It is principally involved in the development, production, and sale of a wide array of vehicles. This portfolio encompasses p...
How the Company Makes Money
MBG makes money primarily by selling vehicles and by earning recurring revenue from financial and aftersales services. (1) Vehicle sales (largest driver): Revenue is generated from the sale of Mercedes-Benz passenger cars (including AMG, Maybach, ...
Mercedes-Benz Group Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presents a broadly constructive financial and operational picture: strong profitability year‑over‑year (EBIT +22%), solid cash generation, aggressive shareholder returns, meaningful BEV and eVans volume growth, and clear product and technology momentum (MB.OS, axial‑flux motor, ADAS). However, material challenges remain—most notably the sharp China market downturn, China‑related valuation adjustments, pricing and FX headwinds, and expected H2 cost pressures and seasonality that put margin delivery at risk. On balance, the company demonstrates resilience and a credible plan to address weakness (product launches, productivity initiative, footprint optimization), and the positives modestly outweigh the negatives.Positive Updates
Industrial footprint and productivity actions
Kecskemét (Hungary) plant expansion doubled capacity to enable production shifts (e.g., new electric C‑Class and GLC), and a global productivity initiative (special focus on Germany) launched to improve competitiveness and lower weighted average production costs.
Negative Updates
China market weakness and sales impact
Chinese auto market declined approximately 20% in the quarter; Mercedes total sales declined 7% year‑to‑date including China (but were +2% ex‑China in H1). The China slowdown materially reduced sales and profitability contributions.
Read all updates
Q2-2026 Updates
Positive
Negative
Industrial footprint and productivity actions
Kecskemét (Hungary) plant expansion doubled capacity to enable production shifts (e.g., new electric C‑Class and GLC), and a global productivity initiative (special focus on Germany) launched to improve competitiveness and lower weighted average production costs.
Read all positive updates
Company Guidance
Mercedes-Benz reiterated 2026 guidance with Cars now expected to deliver full‑year sales slightly below 2025 (driven by a ~20% China market reset) but lifted Cars xEV share to 23–25%; Cars adjusted return on sales guidance remains 3–5% (H1 ROS 4%, Q2 Cars adj. EBIT ~€900m) with the company expecting to finish in the lower half of the range. Vans guidance is unchanged (Q2: ~94k units, revenue €4.5bn, adj. EBIT ~€450m, adj. ROS 10.2%) and Vans full‑year adj. ROS is guided to 8–10%; Financial Services raised its full‑year adjusted ROE to 12–14% (H1 ROE 14.4%, MBFS adj. EBIT ~€500m, ROS 15.3%). At group level management sees revenue slightly below prior year but EBIT “significantly above” prior year (Q2 adj. group EBIT €2.3bn, reported €1.5bn), confirmed industrial free‑cash‑flow guidance (full year slightly below prior year) after H1 FCF €3bn and Q2 FCF €1.1bn, NIL ~€30bn; capital return continues (H1 cash returned €5bn — dividend €3.3bn + buybacks €1.7bn — July DT monetization ~€600m, and a new share buyback of up to €1bn to be completed before AGM 2027).Mercedes-Benz Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.50B | 132.21B | 145.59B | 152.39B | 150.02B | 133.89B |
| Gross Profit | 21.88B | 22.33B | 28.58B | 35.00B | 34.02B | 30.68B |
| EBITDA | 13.40B | 13.90B | 21.50B | 27.44B | 27.25B | 23.22B |
| Net Income | 5.03B | 5.14B | 10.21B | 14.26B | 14.50B | 23.01B |
Balance Sheet | ||||||
| Total Assets | 259.72B | 255.47B | 265.01B | 263.02B | 260.01B | 259.83B |
| Cash, Cash Equivalents and Short-Term Investments | 17.65B | 19.19B | 21.60B | 22.12B | 23.92B | 29.83B |
| Total Debt | 102.23B | 100.01B | 112.80B | 109.43B | 111.84B | 125.84B |
| Total Liabilities | 166.95B | 161.23B | 171.38B | 170.21B | 173.47B | 186.66B |
| Stockholders Equity | 91.78B | 93.26B | 92.63B | 91.77B | 85.42B | 71.95B |
Cash Flow | ||||||
| Free Cash Flow | 7.98B | 12.52B | 9.07B | 6.26B | 13.41B | 19.97B |
| Operating Cash Flow | 13.83B | 18.01B | 17.73B | 14.47B | 16.89B | 24.55B |
| Investing Cash Flow | -7.66B | -9.20B | -8.75B | -7.32B | -3.45B | -6.23B |
| Financing Cash Flow | -10.08B | -10.45B | -10.75B | -8.39B | -19.03B | -19.06B |
Mercedes-Benz Group Technical Analysis
Neutral
44.78
Price Trends
46.34
Positive
48.13
Negative
51.29
Negative
Market Momentum
0.42
Negative
53.50
Neutral
74.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MBG, the sentiment is Neutral. The current price of 44.78 is below the 20-day moving average (MA) of 45.89, below the 50-day MA of 46.34, and below the 200-day MA of 51.29, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 74.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €8.81B | 5.61 | 7.73% | 5.57% | -13.16% | ― | |
62 Neutral | €14.37B | -435.52 | -0.76% | 3.81% | -44.98% | -102.56% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | €45.00B | 8.90 | 5.43% | 7.82% | -7.07% | -24.21% | |
56 Neutral | €35.90B | 5.71 | 6.61% | 7.72% | -6.21% | 11.84% | |
55 Neutral | €37.78B | 7.14 | 3.18% | 7.36% | -0.79% | -37.21% | |
43 Neutral | €6.70B | -15.20 | -14.78% | 3.76% | 16.50% | 57.62% |
* Consumer Cyclical Sector Average
DE:MBG
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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.