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Mercedes-Benz Group AG Unsponsored ADR (MBGYY)
OTHER OTC:MBGYY

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

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Mercedes-Benz Group AG Unsponsored ADR

(OTC:MBGYY)

Rating:80Outperform
Price Target:
$17.00
▲(19.13%Upside)
The strong valuation, characterized by a low P/E ratio and high dividend yield, is the most significant factor contributing to the overall score. Financial performance also supports a positive outlook, with strong profitability margins and cash flow management. Despite some technical indicators suggesting short-term weakness, the overall investment case remains strong due to its attractive valuation.

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

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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q4-2024)
|
% Change Since: -1.31%|
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
85
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
78
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
88
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
142.94B145.59B153.22B150.02B133.89B154.31B
Gross Profit
28.03B28.58B34.38B34.02B30.68B25.59B
EBIT
10.78B12.30B13.27B20.28B16.93B6.95B
EBITDA
19.55B21.50B27.44B27.25B23.22B15.39B
Net Income Common Stockholders
8.91B10.21B14.26B14.50B11.05B3.63B
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.12B21.74B18.99B24.36B29.86B28.45B
Total Assets
261.26B265.01B263.02B260.01B259.83B285.74B
Total Debt
86.79B93.04B87.21B84.41B93.85B114.76B
Net Debt
75.04B78.53B71.25B66.73B70.73B91.71B
Total Liabilities
165.93B171.38B170.21B173.47B186.66B223.49B
Stockholders Equity
94.31B92.63B91.77B85.42B71.95B60.69B
Cash FlowFree Cash Flow
10.44B9.07B6.26B9.99B17.23B13.77B
Operating Cash Flow
19.14B17.73B14.47B16.89B24.55B22.33B
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
Negative
Last Price14.27
Price Trends
50DMA
14.31
Negative
100DMA
14.47
Negative
200DMA
14.24
Negative
Market Momentum
MACD
-0.02
Positive
RSI
39.08
Neutral
STOCH
-0.37
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 14.27 is below the 20-day moving average (MA) of 14.72, below the 50-day MA of 14.31, and above the 200-day MA of 14.24, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of -0.37 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$55.82B6.109.32%8.36%-6.60%-30.08%
FF
77
Outperform
$41.44B8.3511.47%5.76%3.03%28.54%
TMTM
75
Outperform
$229.57B7.5313.36%3.54%-0.59%7.56%
74
Outperform
$1.06T173.979.16%1.03%-53.71%
HMHMC
74
Outperform
$47.67B8.346.54%3.75%4.37%6.93%
GMGM
72
Outperform
$46.42B6.958.88%1.24%7.76%-14.17%
62
Neutral
$6.80B11.042.79%4.42%2.67%-25.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MBGYY
Mercedes-Benz Group AG Unsponsored ADR
14.08
-2.17
-13.35%
F
Ford Motor
10.43
-0.64
-5.78%
GM
General Motors
48.09
0.82
1.73%
HMC
Honda Motor Company
29.65
-0.67
-2.21%
TSLA
Tesla
322.05
140.48
77.37%
TM
Toyota Motor
175.59
-18.95
-9.74%
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.