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Mercedes-Benz Group (DE:MBG)
XETRA:MBG
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Mercedes-Benz Group
(XETRA:MBG)
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Rating:72Outperform
Price Target:
€58.00
▲(13.70% Upside)
Mercedes-Benz Group's stock score is driven by its solid financial performance and attractive valuation. However, technical indicators suggest short-term bearish momentum, and the mixed earnings call outlook highlights challenges in key markets, particularly China.
Positive Factors
Negative Factors
Mercedes-Benz Group (MBG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$49.43B
Dividend Yield8.43%
Average Volume (3M)1.58M
Price to Earnings (P/E)7.4
Beta (1Y)1.22
Revenue Growth-7.14%
EPS Growth-43.43%
CountryDE
Employees163,132
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.95
Shares Outstanding962,903,700
10 Day Avg. Volume1,806,763
30 Day Avg. Volume1,578,333
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit5.13
Enterprise Value/Ebitda7.57
Forecast
1Y Price Target
$61.32Price Target Upside20.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Mercedes-Benz Group Business Overview & Revenue Model
Company DescriptionMercedes-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-Class, Mercedes-Maybach, and Mercedes-EQ brands, as well as small cars under the smart brand; ecosystem of Mercedes-Benz under the Mercedes me brand; and vans under the Mercedes-Benz and Freightliner brands, as well as related spare parts and accessories. It also provides financing and leasing packages for end-customers and dealers; automotive insurance brokerage and banking services; car subscription and car rental, and fleet management, as well as digital services for charging and payment; and mobility services. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
How the Company Makes MoneyMercedes-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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
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.Q2-2025 Updates
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.
Strong Cash Flow and Financial Position
Mercedes-Benz generated a solid cash flow of EUR 1.9 billion in the industrial segment, covering the dividend payout for the year with a strong net cash position of EUR 30 billion.
Electric Vans Growth and Large Amazon Order
Mercedes-Benz signed a significant order of 5,000 electric vans with Amazon, indicating strong demand and attractiveness of their electric van offerings.
Efficiency Program Success
The Next Level Performance program contributed EUR 800 million in cost improvements, equating to a 300 basis points improvement in return on sales.
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.
Challenging Market Environment in China
Mercedes-Benz is experiencing lower contributions from China due to a subdued macro environment and competitive pressures.
Lower Sales Guidance
The company revised its sales guidance for fiscal year 2025 significantly below 2024, largely due to challenges in China.
Tariff Uncertainties
Uncertainty remains around the transition and effective date of the new EU-U.S. trade deal, potentially impacting financial performance.
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
Mercedes-Benz Group shows a solid financial performance with a strong gross profit margin and healthy net profit margin, although both have decreased from previous years. Revenue growth has been negative, indicating challenges in maintaining sales momentum. Despite these challenges, the company maintains healthy margins and a balanced capital structure.Income Statement
Mercedes-Benz Group shows a solid financial performance with a strong gross profit margin of 18.41% in TTM, although it has decreased from previous years. The net profit margin is healthy at 4.89%, but has declined from 7.01% in 2024. Revenue growth has been negative recently, indicating a potential challenge in maintaining sales momentum. EBIT and EBITDA margins have also decreased, reflecting some pressure on operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.95 in TTM, indicating a better balance between debt and equity compared to previous years. However, the return on equity has decreased to 7.41%, suggesting a decline in profitability relative to shareholder equity. The equity ratio remains stable, indicating a solid asset base.70
Positive
Cash Flow
Cash flow performance is strong with a significant free cash flow growth rate of 13.27% in TTM. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is healthy, suggesting good cash conversion from profits.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.35B | 145.59B | 152.39B | 150.02B | 133.89B | 121.78B |
| Gross Profit | 25.65B | 28.58B | 35.00B | 34.02B | 30.68B | 20.19B |
| EBITDA | 17.41B | 21.50B | 27.44B | 27.25B | 23.22B | 15.39B |
| Net Income | 6.81B | 10.21B | 14.26B | 14.50B | 23.01B | 3.63B |
Balance Sheet | ||||||
| Total Assets | 256.63B | 265.01B | 263.02B | 258.89B | 258.62B | 284.18B |
| Cash, Cash Equivalents and Short-Term Investments | 26.87B | 21.60B | 18.99B | 20.06B | 24.32B | 25.51B |
| Total Debt | 86.40B | 112.80B | 87.21B | 84.41B | 93.85B | 114.76B |
| Total Liabilities | 164.91B | 171.38B | 170.21B | 173.47B | 186.66B | 223.49B |
| Stockholders Equity | 90.83B | 92.63B | 91.77B | 85.42B | 71.95B | 60.69B |
Cash Flow | ||||||
| Free Cash Flow | 14.96B | 9.07B | 6.26B | 13.41B | 19.97B | 16.59B |
| Operating Cash Flow | 20.87B | 17.73B | 14.47B | 16.89B | 24.55B | 22.33B |
| Investing Cash Flow | -11.10B | -8.75B | -7.32B | -3.45B | -6.23B | -6.42B |
| Financing Cash Flow | -8.33B | -10.75B | -8.39B | -19.03B | -19.06B | -10.75B |
Mercedes-Benz Group Technical Analysis
Negative
51.01
Price Trends
52.45
Negative
51.71
Negative
51.64
Negative
Market Momentum
-0.35
Positive
38.03
Neutral
20.20
Neutral
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 51.01 is below the 20-day moving average (MA) of 52.89, below the 50-day MA of 52.45, and below the 200-day MA of 51.64, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 49.99B | 6.00 | 6.23% | 6.42% | -0.19% | -44.09% | |
73 Outperform | 49.27B | 8.95 | 6.25% | 5.18% | -11.92% | -43.64% | |
72 Outperform | $49.43B | 7.41 | 7.24% | 8.43% | -7.14% | -43.43% | |
68 Neutral | 14.60B | 9.61 | 8.14% | 3.43% | -26.66% | 82.24% | |
57 Neutral | 13.19B | 31.81 | 14.66% | 2.14% | -1.78% | -30.46% | |
56 Neutral | 10.95B | ― | -57.02% | 5.30% | 0.00% | 0.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
DE:MBG
Mercedes-Benz Group
51.01
-2.01
-3.79%
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35.74
-2.91
-7.53%
GB:0P6O
Volkswagen
99.17
12.21
14.04%
DE:KBX
Knorr-Bremse AG
81.85
6.10
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Continental Aktiengesellschaft
88.44
27.93
46.16%
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.