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Mercedes-Benz Group AG Unsponsored ADR (MBGYY)
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Mercedes-Benz Group AG Unsponsored ADR
(OTC:MBGYY)
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Rating:73Outperform
Price Target:
$16.50
▲(9.20% Upside)
Mercedes-Benz Group AG's overall stock score is driven by its strong financial performance and attractive valuation, which are the most significant strengths. The technical analysis indicates potential short-term weakness, but the valuation suggests the stock is undervalued. The earnings call highlights both opportunities and challenges, with strategic initiatives providing a positive outlook despite market headwinds.
Mercedes-Benz Group AG Unsponsored ADR (MBGYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.16B
Dividend Yield7.88%
Average Volume (3M)11.42K
Price to Earnings (P/E)8.1
Beta (1Y)0.77
Revenue Growth-6.62%
EPS Growth-43.51%
CountryUS
Employees163,132
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.27
Shares Outstanding3,851,614,700
10 Day Avg. Volume0
30 Day Avg. Volume11,417
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.58
Price to Sales (P/S)0.37
P/FCF Ratio5.90
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda8.88
Forecast
1Y Price Target
$16.50Price Target Upside9.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Mercedes-Benz Group AG Unsponsored ADR 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 AG generates revenue primarily through the sale of its vehicles, which includes a diverse lineup of luxury cars and commercial vehicles. The company also earns from providing financial services, such as leasing and financing, to its customers. After-sales services, including maintenance and the sale of spare parts, contribute significantly to its revenue. Strategic partnerships and collaborations in areas like electric vehicle development and autonomous driving technology also play a role in enhancing its market position and revenue potential. These key revenue streams are supported by Mercedes-Benz's strong global brand presence and its commitment to innovation and quality.
Mercedes-Benz Group AG Unsponsored ADR 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 highlighted a mix of solid financial performance, successful product launches, and strong cash flow generation, alongside challenges from tariffs and a difficult market environment in China. While there are several positive aspects, the challenges and impacts from tariffs present a balanced perspective.Q2-2025 Updates
Positive Updates
Solid Financial Performance in Q2
Mercedes-Benz produced a solid financial performance in Q2, in line with expectations, despite dynamic business environment and tariff impacts.
Successful Product Offensive
The launch of the new CLA received extremely positive feedback from customers, dealers, and industry watchers. Mercedes-Benz plans to launch more than 25 individual models in the next 3 years.
Strong Cash Flow Generation
Another solid quarter in terms of cash flow generation was achieved, covering the dividend payout with a net cash position of EUR 30 billion.
Van Division Performance
The van division managed to outperform competition with a return on sales of 10.4%, despite the challenging economic environment.
Expansion in Electric Mobility
Introduction of Mercedes-Benz electric architecture (MB.EA) showcasing new era in electric mobility with fully flexible battery technologies.
Negative Updates
Impact of Tariffs
Tariffs had a significant impact on financials, with a mid-3-digit million euro impact in Q2 and expected full-year impact of around 150 basis points.
Challenging Market Environment in China
The market environment in China remains challenging, with subdued macroeconomic conditions and competitive pressure affecting sales.
Lower Sales Volume
2025 sales expected to be significantly below 2024, mainly due to challenges in the Chinese market.
Restructuring Impacts
Restructuring efforts led to provisions affecting earnings, though they are progressing according to plan.
Company Guidance
During the Mercedes-Benz Q2 results conference call, several key metrics and guidance were discussed. The company achieved a 6.2% underlying return on sales in H1 2025, with an adjusted EBIT of €2 billion. Free cash flow stood at €4.2 billion, fully covering the dividend paid. The impact of tariffs was notable, affecting the return on sales by 150 basis points for the full year. Mercedes-Benz has also embarked on a significant product and technology offensive, with plans to launch over 25 models in the next three years, including electric vehicles. The company expects its global TEV share to be between 14% and 15% for the year and the EV share to range from 20% to 22%. Sales in 2025 are projected to be significantly below 2024 levels, primarily due to challenges in China. Despite these challenges, the company remains focused on cash flow generation and product innovation, with a robust pipeline of upcoming electric and hybrid models.Mercedes-Benz Group AG Unsponsored ADR Financial Statement Overview
Summary
Mercedes-Benz Group AG demonstrates strong financial health, with solid profitability margins and efficient cash flow management. The company maintains a healthy balance sheet and exhibits strong cash generation capabilities. However, a slight decline in revenue growth is a concern.Income Statement
Mercedes-Benz Group AG shows a solid financial performance with a Gross Profit Margin of 19.6% in the TTM (Trailing-Twelve-Months), and a strong Net Profit Margin of 6.2%. The EBIT Margin stands at 7.5% and EBITDA Margin at 13.7%, reflecting efficient cost management. However, the Revenue Growth Rate is slightly negative at -1.82% from the previous year, indicating a minor decrease in sales, which needs to be monitored.75
Positive
Balance Sheet
The company's financial stability is supported by a Debt-to-Equity Ratio of 0.92, which is manageable for the industry. The Return on Equity (ROE) is robust at 9.45% in the TTM, indicating effective use of equity to generate profits. The Equity Ratio is 36.1%, showing a reasonable balance between debt and equity. The balance sheet is healthy, but vigilance over debt levels is advisable.70
Positive
Cash Flow
Mercedes-Benz Group AG's cash flow is strong, with a Free Cash Flow to Net Income Ratio of 1.17, and an Operating Cash Flow to Net Income Ratio of 2.15. The Free Cash Flow Growth Rate is 15.06%, demonstrating solid cash generation capabilities, providing flexibility for future investments or debt repayment.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.35B | 145.59B | 153.22B | 150.02B | 133.89B | 154.31B |
| Gross Profit | 25.65B | 28.58B | 34.38B | 34.02B | 30.68B | 25.59B |
| EBITDA | 17.41B | 21.50B | 27.44B | 27.25B | 23.22B | 15.39B |
| Net Income | 6.81B | 10.21B | 14.26B | 14.50B | 11.05B | 3.63B |
Balance Sheet | ||||||
| Total Assets | 256.63B | 265.01B | 263.02B | 260.01B | 259.83B | 285.74B |
| Cash, Cash Equivalents and Short-Term Investments | 26.87B | 21.74B | 18.99B | 24.36B | 29.86B | 28.45B |
| Total Debt | 86.40B | 93.04B | 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 | 12.19B | 9.07B | 6.26B | 9.99B | 17.23B | 13.77B |
| 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 AG Unsponsored ADR Technical Analysis
Neutral
15.11
Price Trends
15.29
Negative
14.94
Positive
14.46
Positive
Market Momentum
-0.04
Positive
44.57
Neutral
10.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBGYY, the sentiment is Neutral. The current price of 15.11 is below the 20-day moving average (MA) of 15.48, below the 50-day MA of 15.29, and above the 200-day MA of 14.46, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 10.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MBGYY.
Mercedes-Benz Group AG Unsponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | 261.53B | 9.17 | 13.26% | 2.68% | 4.14% | -12.12% | |
77 Outperform | 46.04B | 11.90 | 6.78% | 4.06% | 1.68% | -39.28% | |
76 Outperform | 1.37T | 246.62 | 7.90% | ― | -2.73% | -51.64% | |
75 Outperform | 55.92B | 9.27 | 7.19% | 0.92% | 5.34% | -28.29% | |
73 Outperform | 46.41B | 14.81 | 6.99% | 6.43% | 2.72% | -17.58% | |
73 Outperform | $58.16B | 8.07 | 7.24% | 7.88% | -6.62% | -43.51% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
MBGYY
Mercedes-Benz Group AG Unsponsored ADR
15.11
0.02
0.13%
F
Ford Motor
11.66
1.46
14.31%
GM
General Motors
58.73
10.58
21.97%
HMC
Honda Motor Company
34.12
3.62
11.87%
TSLA
Tesla
425.86
198.66
87.44%
TM
Toyota Motor
201.38
24.67
13.96%
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.