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

• Market Cap: $59.48B
• Dividend Yield: 6.82%
• Average Volume (3M): 9.96K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.73
• Revenue Growth: -5.36%
• EPS Growth: -37.55%
• Country: US
• Employees: 163,132
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.42
• Shares Outstanding: 3,851,614,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,965
• PEG Ratio: -0.24
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 4.96
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: 6.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.76
• Revenue Forecast (FY): $157.18B

• Rating: 63 Neutral
• Price Target: $17.00 ▼(-2.80% Downside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is primarily supported by relatively solid cash flow and a not-overstretched balance sheet, alongside attractive headline valuation (moderate P/E and high dividend yield). Offsetting these positives, profitability and segment-level operating trends have weakened materially, and technical indicators show a clear downtrend with poor momentum.

Positive Factors

Cash generation

Consistent positive operating and free cash flow provides durable internal funding for product launches, capex and dividends. Strong cash conversion (FCF ~69.6% of net income in 2025) reduces reliance on external financing and supports strategic flexibility through cycles.

Balance-sheet resilience

Moderate leverage and a strengthened equity base create room to invest in EV programs and absorb cyclical shocks. A roughly 1:1 debt-to-equity profile supports liquidity and credit flexibility, enabling durable capital allocation for R&D and restructuring without excessive refinancing risk.

Product & efficiency program

A structured 'Next Level Performance' program combining product launches, fixed/variable cost cuts and localisation materially improves long-term margin potential. Lower capex after 2025, production efficiency targets and MB.OS scale reduce unit cost and support sustainable returns across ICE and BEV lines.

Negative Factors

Weakened profitability

A multi-year decline in revenue and a sharp drop in EBIT and net margins indicate structural pressure on pricing, mix and operating leverage. Persistently lower profitability reduces internal funding capacity, compresses ROE and limits headroom for reinvestment and shareholder distributions.

Mobility unit weakness

Mercedes-Benz Mobility weakening to negative performance undermines a key diversified earnings stream. Financial-services losses amplify cyclicality, heighten capital needs for lease/dealer portfolios, and reduce the stabilising cashflow that normally cushions vehicle-cycle downturns.

Supply chain / geopolitical risk

Ongoing semiconductor export controls and supplier conflicts pose durable production and cost risks for auto OEMs. Prolonged chip or component disruptions can reduce volumes, delay EV rollouts, raise costs and force inventory or design changes, pressuring margins and delivery commitments.

Mercedes-Benz Group AG Unsponsored ADR 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-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 Money

Mercedes-Benz Group makes money primarily by selling vehicles and by providing vehicle-related financial and mobility services. (1) Vehicle sales (core revenue stream): The company generates revenue from wholesale and retail sales of Mercedes-Benz passenger cars and vans to dealers, fleet customers, and end customers, including sales of internal-combustion and electrified vehicles. Revenue is driven by unit volumes, vehicle mix (model and trim), pricing, optional equipment, and geographic sales distribution; profitability is influenced by manufacturing costs, supply chain inputs, and product lifecycle/launch timing. (2) After-sales, parts, and services: The company earns recurring revenue from genuine parts, accessories, and service/maintenance work performed through its authorized service network, which is typically higher-frequency and can be more resilient than new-vehicle demand. (3) Mercedes-Benz Mobility (financial services): The group earns interest income and fees by financing customer and dealer purchases, offering leasing products, and providing related financial solutions; it also generates income from insurance brokerage/commission activities and other mobility services tied to vehicle ownership and usage. These activities support vehicle sales by lowering purchase frictions and improving affordability, while also creating a portfolio of interest-earning and fee-generating contracts over time. (4) Other contributing factors: Earnings can be affected by foreign exchange movements (given global sales), commodity and energy costs, regulatory requirements (emissions and safety), and the performance of dealer/fleet channels. If specific material partnerships are required beyond these standard industry channels, null.

Mercedes-Benz Group AG Unsponsored ADR Financial Statement Overview

Summary

Cash generation is a key support (positive free cash flow and solid operating cash flow), and leverage is moderate with improved balance-sheet resilience versus earlier years. However, operating performance weakened meaningfully in 2025 with declining revenue and a sharp drop in margins and ROE; segment KPIs also indicate deteriorating profitability (Cars/Vans) and Mobility turning negative by late 2025.

Income Statement

Profitability has weakened meaningfully versus prior years. Annual revenue has declined from 2023 to 2025 (2025 down ~7.3%), and net margin fell from ~9.3% (2023) and ~7.0% (2024) to ~4.0% in 2025, alongside a sharp step-down in EBIT margin to ~4.4% (vs ~10.1% in 2024). The business remains profitable, but the trajectory points to cyclical/competitive pressure and lower operating leverage, which keeps the income-statement score in the mid-range.

Balance Sheet

Leverage is moderate for the sector, with debt roughly around equity in recent years (debt-to-equity ~0.95–1.00 in 2022–2024), improving versus 2020–2021 when leverage was higher. Equity has also strengthened versus 2020, supporting balance-sheet resilience. However, returns on equity have cooled materially (from ~15–17% in 2021–2023 to ~11% in 2024 and ~5.5% in 2025), suggesting reduced profitability and efficiency, which is a key offset.

Cash Flow

Cash generation remains a relative bright spot: operating cash flow has stayed solid (roughly $14–25B over the period) and free cash flow remains positive each year. In 2025, free cash flow was ~69.6% of net income, indicating earnings are still converting into cash reasonably well. The main weakness is volatility and recent softness: free cash flow growth turned negative in 2025 (~-8.6%) after improving in 2024, consistent with a tougher operating backdrop.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	127.00B	145.59B	153.22B	150.02B	133.89B
Gross Profit	21.82B	28.58B	34.38B	34.02B	30.68B
EBITDA	20.77B	21.50B	27.44B	27.25B	23.22B
Net Income	5.12B	10.21B	14.26B	14.50B	11.05B
Balance Sheet
Total Assets	255.36B	265.01B	263.02B	260.01B	259.83B
Cash, Cash Equivalents and Short-Term Investments	19.19B	21.74B	18.99B	24.36B	29.86B
Total Debt	99.96B	93.04B	87.21B	84.41B	93.85B
Total Liabilities	161.16B	171.38B	170.21B	173.47B	186.66B
Stockholders Equity	93.22B	92.63B	91.77B	85.42B	71.95B
Cash Flow
Free Cash Flow	12.03B	9.07B	6.26B	9.99B	17.23B
Operating Cash Flow	17.30B	17.73B	14.47B	16.89B	24.55B
Investing Cash Flow	-8.84B	-8.75B	-7.32B	-3.45B	-6.23B
Financing Cash Flow	-10.04B	-10.75B	-8.39B	-19.03B	-19.06B

Mercedes-Benz Group AG Unsponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.49 is above the 20-day moving average (MA) of 16.61, above the 50-day MA of 17.05, and above the 200-day MA of 16.09, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	66 Neutral	$272.91B	8.55	9.96%	2.57%	7.28%	12.41%
MBGYY	63 Neutral	$59.48B	11.66	5.77%	6.82%	-5.36%	-37.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSLA	60 Neutral	$1.48T	382.27	4.83%	―	-2.93%	-47.22%
GM	59 Neutral	$65.94B	27.72	5.13%	0.69%	-1.29%	-49.96%
HMC	59 Neutral	$32.83B	9.64	4.09%	4.19%	0.32%	-25.51%
F	48 Neutral	$46.72B	―	-18.91%	5.64%	3.75%	33.37%