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

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Mercedes-Benz Group AG Unsponsored ADR

(OTC:MBGYY)

70Outperform

Mercedes-Benz Group AG's stock reflects a robust financial foundation with strong cash flow and liquidity. However, operational challenges, particularly the declining EBIT margin and market pressures, notably in China, weigh on the score. The stock's valuation is attractive, supported by a low P/E ratio and high dividend yield, but technical indicators suggest cautious market sentiment. Strategic initiatives and solid liquidity provide a buffer against market headwinds, supporting a moderate overall score.

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

Market Cap

$52.06B

Dividend Yield7.39%

Average Volume (3M)34.47K

Price to Earnings (P/E)4.8

Beta (1Y)0.75

Revenue Growth-4.95%

EPS Growth-25.40%

CountryUS

Employees163,132

SectorConsumer Cyclical

Sector Strength62

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)2.71

Shares Outstanding3,851,614,700

10 Day Avg. Volume103,401

30 Day Avg. Volume34,467

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.50

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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

Company DescriptionMercedes-Benz Group AG Unsponsored ADR (MBGYY) is a prominent global automotive company headquartered in Stuttgart, Germany. It specializes in the design, manufacture, and sale of luxury vehicles, including passenger cars, trucks, and vans. Mercedes-Benz is renowned for its emphasis on innovation, quality, and safety in the automotive sector, offering a diverse portfolio of vehicles under prestigious brand names such as Mercedes-Benz and Mercedes-AMG. The company also engages in automotive-related financial services, enhancing its comprehensive offerings in the transportation industry.

How the Company Makes MoneyMercedes-Benz Group AG generates revenue primarily through the sale of its luxury vehicles, which includes a broad range of passenger cars and commercial vehicles. The company's key revenue streams include vehicle sales, spare parts, and after-sales services. Additionally, Mercedes-Benz has a significant presence in the automotive financial services sector, offering financing, leasing, and insurance products that contribute to its earnings. The company's earnings are also bolstered by strategic partnerships and collaborations in areas like electric vehicle development and autonomous driving technologies, which help maintain its competitive edge in the evolving automotive market.

Mercedes-Benz Group AG Unsponsored ADR Financial Statement Overview

Summary

Mercedes-Benz Group AG exhibits strong financial health with robust profitability margins and operational efficiency. The balance sheet shows a stable leverage level and respectable ROE, while cash flow remains strong despite minor revenue growth setbacks.

Income Statement

Very Positive

The income statement shows strong profitability with a gross profit margin of 19.76% and a net profit margin of 7.35% for TTM (Trailing-Twelve-Months). Although there is a slight decrease in revenue compared to the previous year, the company has maintained healthy EBIT and EBITDA margins of 8.01% and 14.43%, respectively, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.01, showing a balanced leverage level. The return on equity (ROE) stands at 12.05%, which is respectable, and the equity ratio is 34.33%, indicating a solid equity foundation.

Cash Flow

Very Positive

Cash flow analysis reveals robust operating cash flow, resulting in an operating cash flow to net income ratio of 1.45 for TTM. The free cash flow to net income ratio is 0.69, signifying efficient cash generation relative to earnings. Despite a decline in free cash flow growth, the company's cash flow position remains strong.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
147.41B	153.22B	150.02B	133.89B	154.31B	172.75B
	Gross Profit
29.12B	34.38B	34.02B	30.68B	25.59B	29.16B
	EBIT
11.80B	13.27B	20.28B	16.93B	6.95B	4.10B
	EBITDA
21.28B	27.44B	27.25B	23.22B	15.39B	12.70B
	Net Income Common Stockholders
10.84B	14.26B	14.50B	11.05B	3.63B	2.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.77B	18.99B	24.36B	29.86B	28.45B	26.77B
	Total Assets
302.44B	263.02B	260.01B	259.83B	285.74B	302.44B
	Total Debt
134.73B	87.21B	84.41B	93.85B	114.76B	134.73B
	Net Debt
115.85B	71.25B	66.73B	70.73B	91.71B	115.85B
	Total Liabilities
239.60B	170.21B	173.47B	186.66B	223.49B	239.60B
	Stockholders Equity
61.34B	91.77B	85.42B	71.95B	60.69B	61.34B
Cash Flow		Free Cash Flow
7.49B	6.26B	9.99B	17.23B	13.77B	-2.95B
	Operating Cash Flow
15.76B	14.47B	16.89B	24.55B	22.33B	7.89B
	Investing Cash Flow
-7.38B	-7.32B	-3.45B	-6.23B	-6.42B	-10.61B
	Financing Cash Flow
-9.07B	-8.39B	-19.03B	-19.06B	-10.75B	5.63B

Mercedes-Benz Group AG Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price13.30

Price Trends

50DMA

15.36

Negative

100DMA

14.77

Negative

200DMA

15.47

Negative

Market Momentum

MACD

-0.20

Positive

RSI

36.04

Neutral

STOCH

0.45

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 13.3 is below the 20-day moving average (MA) of 14.85, below the 50-day MA of 15.36, and below the 200-day MA of 15.47, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 0.45 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 (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMC	74 Outperform	$41.78B	6.42	8.11%	4.54%	4.37%	6.93%
TSLA	73 Outperform	$811.85B	123.78	10.52%	―	0.95%	-52.81%
F	72 Outperform	$36.35B	6.25	13.42%	8.21%	5.00%	35.92%
GM	72 Outperform	$43.51B	6.87	9.44%	1.10%	9.08%	-15.25%
TM	70 Outperform	$215.60B	6.90	14.59%	2.91%	-0.59%	7.56%
MBGYY	70 Outperform	$52.06B	4.83	11.18%	7.39%	-4.95%	-25.40%
Sector *	59 Neutral	$11.38B	10.18	-0.84%	4.04%	1.25%	-16.04%

* Consumer Cyclical Sector Average

Performance Comparison

MBGYY

Mercedes-Benz Group AG Unsponsored ADR

13.66

-5.56

-28.93%

Ford Motor

9.33

-2.04

-17.94%

General Motors

43.63

1.36

3.22%

HMC

Honda Motor Company

27.62

-6.84

-19.85%

TSLA

Tesla

252.31

90.83

56.25%

Toyota Motor

169.42

-72.25

-29.90%

Mercedes-Benz Group AG Unsponsored ADR Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -16.56% | Next Earnings Date: Apr 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.

Highlights

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.

Lowlights

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.