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

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Mercedes-Benz Group AG Unsponsored ADR

(OTC:MBGYY)

Rating:76Outperform

Price Target:

$16.50

▲(6.25%Upside)

Mercedes-Benz Group AG's strong financial performance, characterized by solid profitability margins and healthy cash flow, is a significant factor in its high stock score. The attractive valuation with a low P/E ratio and high dividend yield further boosts investor appeal. While technical analysis suggests mixed signals, the overall prospects remain positive due to financial robustness and valuation attractiveness.

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

Market Cap

$59.78B

Dividend Yield7.69%

Average Volume (3M)21.96K

Price to Earnings (P/E)6.5

Beta (1Y)0.69

Revenue Growth-6.60%

EPS Growth-30.08%

CountryUS

Employees163,132

SectorConsumer Cyclical

Sector Strength66

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)0.46

Shares Outstanding3,851,614,700

10 Day Avg. Volume19,900

30 Day Avg. Volume21,961

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.19

Price to Sales (P/S)0.00

P/FCF Ratio1.63

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.00

Price Target Upside9.47% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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:Apr 30, 2025

(Q4-2024)

% Change Since: 7.40%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

Mercedes-Benz has demonstrated resilience with strong financial metrics like free cash flow and liquidity, alongside strategic product launches. However, challenges in China and ongoing CO2 compliance costs present headwinds.

Q4-2024 Updates

Positive Updates

Strong Free Cash Flow

Mercedes-Benz achieved a €9.2 billion free cash flow, showcasing a solid financial foundation despite challenging market conditions.

Robust Net Industrial Liquidity

The company's net industrial liquidity remains strong at around €35 billion, reflecting a solid balance sheet.

Van Division Performance

The Van division achieved unusually high profitability, with a strong product lineup and disciplined go-to-market strategy.

EV Market Leadership

In the E-Class and S-Class segments, Mercedes-Benz maintains a leadership position in the premium luxury EV market.

Focus on Product Launch Offensive

Mercedes-Benz is preparing for the largest tech and product launch offensive in its history, signaling strong future growth potential.

Negative Updates

Challenges in China

Subdued consumer sentiment in China affected revenues and profitability, particularly in the upper segments.

Mobility Division Performance

Mercedes-Benz Mobility experienced one of its weaker years due to interest rate impacts, with a new business margin under pressure.

CO2 Compliance Costs

The company anticipates significant CO2 compliance costs in 2025, impacting margins, particularly in the Vans division.

Company Guidance

In the 2024 Annual Results Conference and Capital Market Day, Mercedes-Benz reported a €9.2 billion free cash flow despite challenging market conditions, particularly in China, which impacted revenues and profitability. The company maintained a robust net industrial liquidity of €35 billion, even after returning around €10 billion to shareholders through dividends and share buybacks. The Van division achieved a strong profitability with a 14.6% return on sales, while Mercedes-Benz Mobility faced pressure with an 8-9% return on equity. The company anticipates a 6-8% return on sales for cars in 2025, with sales slightly lower than in 2024. Investment in R&D and capital expenditures is expected to increase, supporting a significant tech and product launch offensive, while maintaining disciplined cost management to navigate future market challenges.

Mercedes-Benz Group AG Unsponsored ADR Financial Statement Overview

Summary

Mercedes-Benz Group AG exhibits a strong financial position with solid profitability and efficient cash flow management. While revenue growth is slightly negative, the company maintains good profitability margins and a healthy balance sheet. Strong cash flow supports operational flexibility and strategic investments, positioning the company well in the competitive auto manufacturing industry.

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	142.94B	145.59B	153.22B	150.02B	133.89B	154.31B
Gross Profit	28.03B	28.58B	34.38B	34.02B	30.68B	25.59B
EBITDA	19.55B	21.50B	27.44B	27.25B	23.22B	15.39B
Net Income	8.91B	10.21B	14.26B	14.50B	11.05B	3.63B
Balance Sheet
Total Assets	261.26B	265.01B	263.02B	260.01B	259.83B	285.74B
Cash, Cash Equivalents and Short-Term Investments	25.12B	21.74B	18.99B	24.36B	29.86B	28.45B
Total Debt	86.79B	93.04B	87.21B	84.41B	93.85B	114.76B
Total Liabilities	165.93B	171.38B	170.21B	173.47B	186.66B	223.49B
Stockholders Equity	94.31B	92.63B	91.77B	85.42B	71.95B	60.69B
Cash Flow
Free Cash Flow	10.44B	9.07B	6.26B	9.99B	17.23B	13.77B
Operating Cash Flow	19.14B	17.73B	14.47B	16.89B	24.55B	22.33B
Investing Cash Flow	-11.21B	-8.75B	-7.32B	-3.45B	-6.23B	-6.42B
Financing Cash Flow	-13.38B	-10.75B	-8.39B	-19.03B	-19.06B	-10.75B

Mercedes-Benz Group AG Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price15.53

Price Trends

50DMA

14.64

Positive

100DMA

14.53

Positive

200DMA

14.21

Positive

Market Momentum

MACD

0.20

Negative

RSI

64.55

Neutral

STOCH

100.28

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBGYY, the sentiment is Positive. The current price of 15.53 is above the 20-day moving average (MA) of 14.64, above the 50-day MA of 14.64, and above the 200-day MA of 14.21, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 100.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MBGYY.

Mercedes-Benz Group AG Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F	77 Outperform	$46.85B	9.44	11.47%	5.09%	3.03%	28.54%
MBGYY	76 Outperform	$59.78B	6.48	9.32%	7.69%	-6.60%	-30.08%
GM	73 Outperform	$51.10B	7.66	8.88%	1.12%	7.76%	-14.17%
HMC	72 Outperform	$48.56B	8.73	6.54%	3.58%	0.83%	-26.70%
TSLA	71 Outperform	$996.70B	172.41	9.16%	―	1.03%	-53.71%
TM	70 Outperform	$222.05B	7.22	13.36%	3.62%	1.06%	-7.05%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%

* Consumer Cyclical Sector Average

Performance Comparison

MBGYY

Mercedes-Benz Group AG Unsponsored ADR

15.53

-1.05

-6.33%

Ford Motor

11.78

-1.41

-10.69%

General Motors

53.39

4.60

9.43%

HMC

Honda Motor Company

30.71

-0.52

-1.67%

TSLA

Tesla

313.51

60.87

24.09%

Toyota Motor

170.26

-36.65

-17.71%

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: Jun 28, 2025