Mercedes-Benz Group AG Unsponsored ADR (MBGYY) AI Stock Analysis

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Mercedes-Benz Group AG Unsponsored ADR

(OTC:MBGYY)

Rating:81Outperform

Price Target:

$17.00

▲(19.89% Upside)

Mercedes-Benz Group AG exhibits a strong financial foundation and attractive valuation, contributing significantly to its overall score. The company's strategic product offensive and focus on cash flow are positive signs, despite challenges from tariffs and market conditions in China. Technical indicators are mixed but do not detract significantly from the stock's potential value.

Mercedes-Benz Group AG Unsponsored ADR (MBGYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$55.47B

Dividend Yield8.4%

Average Volume (3M)31.13K

Price to Earnings (P/E)7.6

Beta (1Y)0.75

Revenue Growth-6.62%

EPS Growth-43.51%

CountryUS

Employees163,132

SectorConsumer Cyclical

Sector Strength64

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)0.27

Shares Outstanding3,851,614,700

10 Day Avg. Volume27,502

30 Day Avg. Volume31,128

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 Cap2.79

Enterprise Value/Revenue1.11

Enterprise Value/Gross Profit6.03

Enterprise Value/Ebitda8.88

Forecast

1Y Price Target

$17.00

Price Target Upside19.89% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Mercedes-Benz Group AG Unsponsored ADR Business Overview & Revenue Model

Company DescriptionMercedes-Benz Group AG Unsponsored ADR (MBGYY) is a leading global automotive company engaged in the design, manufacturing, and distribution of premium cars and commercial vehicles. The company operates through various sectors, including Mercedes-Benz Cars and Mercedes-Benz Vans. Known for its luxury vehicles, Mercedes-Benz offers a wide range of sedans, SUVs, coupes, and convertibles, alongside its commercial offerings like vans and trucks. Mercedes-Benz is renowned for its innovation in automotive technology, safety features, and sustainability efforts.

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: -7.50%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While Mercedes-Benz demonstrated strong financial discipline and a promising product offensive, challenges such as tariffs, a difficult market environment in China, and restructuring costs weigh on the overall outlook.

Q2-2025 Updates

Positive Updates

Solid Financial Performance

Mercedes-Benz produced a solid financial performance in Q2, with a focus on cash flow generation and a healthy free cash flow.

Product and Technology Offensive

Mercedes-Benz is launching more than 25 individual models over the next 3 years, including the new CLA and the first vehicle of the Mercedes-Benz electric architecture.

Significant Order for Electric Vans

Mercedes-Benz signed a major order for 5,000 electric vans with Amazon, highlighting the attractiveness of their electric vehicle offerings.

Strong Cash Position

Mercedes-Benz maintains a very comfortable EUR 30 billion net cash position.

Negative Updates

Tariff Impact on Financials

The financial performance was negatively affected by tariffs, with an impact of 150 basis points expected for the full year.

Challenging Market Environment in China

The market environment in China remains challenging, affecting sales and financial performance.

Lower Unit Sales

Lower unit sales were reported, particularly in China, impacting overall revenue and financial outlook.

Restructuring Costs

The company is undergoing restructuring, especially on the indirect staff side in Germany, leading to provisions in the financials.

Company Guidance

During the Mercedes-Benz conference call, the company provided a comprehensive outlook on its future plans and financial guidance. The firm announced an ambitious product and technology offensive, including the launch of more than 25 models over the next three years, highlighting the CLA as the first of many. The company also discussed the impact of tariffs, estimating a 150 basis point hit to the full-year margin from tariffs and noting a mid-3-digit million euro impact in Q2. Despite challenges, Mercedes-Benz maintained a robust cash flow with a 6.6% return on sales adjusted for tariffs in Q2, and a 5.1% return including tariffs. The firm reported a healthy 14% of top-end sales and growth in xEVs, with a focus on managing battery electric vehicle sales carefully. Mercedes-Benz also outlined a strategic focus on cash flow generation, with plans to cover dividends with free cash flow and potential share buybacks. Additionally, the company anticipates a dynamic market environment, particularly in China and the U.S., affecting sales and pricing strategies. Overall, Mercedes-Benz remains optimistic about its growth trajectory, supported by strategic investments in new technologies and products.

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

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

Technical Analysis Sentiment

Negative

Last Price14.18

Price Trends

50DMA

14.81

Negative

100DMA

14.52

Negative

200DMA

14.22

Positive

Market Momentum

MACD

-0.11

Positive

RSI

41.39

Neutral

STOCH

2.87

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBGYY, the sentiment is Negative. The current price of 14.18 is below the 20-day moving average (MA) of 15.12, below the 50-day MA of 14.81, and below the 200-day MA of 14.22, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 2.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
MBGYY	81 Outperform	$55.47B	7.64	7.24%	8.40%	-6.62%	-43.51%
TSLA	77 Outperform	$995.76B	178.78	8.43%	―	-2.73%	-51.64%
TM	77 Outperform	$237.02B	7.70	13.36%	3.01%	1.06%	-7.05%
GM	72 Outperform	$50.06B	8.37	7.07%	0.97%	5.34%	-28.29%
F	71 Outperform	$44.02B	13.97	7.11%	6.93%	2.72%	-17.58%
HMC	71 Outperform	$50.61B	8.98	5.17%	4.33%	0.83%	-26.70%
Sector *	61 Neutral	$16.54B	10.12	-9.01%	3.34%	1.45%	-22.43%

* Consumer Cyclical Sector Average

Performance Comparison

MBGYY

Mercedes-Benz Group AG Unsponsored ADR

14.29

-0.62

-4.16%

Ford Motor

11.06

1.52

15.93%

General Motors

52.58

10.30

24.36%

HMC

Honda Motor Company

31.62

3.32

11.73%

TSLA

Tesla

308.72

109.88

55.26%

Toyota Motor

181.50

12.13

7.16%

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.Date of analysis: Jul 31, 2025