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Mercedes-Benz Group AG Unsponsored ADR
(OTC:MBGYY)
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Rating:58Neutral
Price Target:
$11.50
▼(-12.21% Downside)
Action:Reiterated
Date:07/30/26
MBGYY scores as neutral overall: the largest drag is weakening fundamentals (declining revenue and sharply compressed margins, with more volatile recent free cash flow). Valuation is a key offset with a low P/E and high dividend yield. Technically, the stock remains in a broader downtrend (below the 50/100/200-day averages), while the earnings call supports a moderately positive view due to disciplined guidance, liquidity/shareholder returns, and Vans/Financial Services strength, tempered by China and expected H2 headwinds.
Positive Factors
Liquidity and Cash Generation
Strong operating cash generation and substantial net industrial liquidity provide a meaningful financial cushion for product investment, restructuring, and market volatility. The ability to fund large shareholder returns while retaining liquidity also indicates that cash generation remains an important support for the business.
Negative Factors
Revenue and Margin Contraction
The sustained decline in revenue and sharp margin compression indicate that current earnings power is materially below recent peak levels. Lower profitability reduces the cushion available for investment and shareholder returns, while making results more sensitive to volume, pricing, and cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity and Cash Generation
Strong operating cash generation and substantial net industrial liquidity provide a meaningful financial cushion for product investment, restructuring, and market volatility. The ability to fund large shareholder returns while retaining liquidity also indicates that cash generation remains an important support for the business.
Read all positive factors
Mercedes-Benz Group AG Unsponsored ADR Key Performance Indicators (KPIs)
Mercedes-Benz Group AG Unsponsored ADR (MBGYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.43B
Dividend Yield9.18%
Average Volume (3M)82.56K
Price to Earnings (P/E)7.6
Beta (1Y)0.78
Revenue Growth-0.30%
EPS Growth-18.13%
CountryUS
Employees164,120
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.33
Shares Outstanding3,851,614,700
10 Day Avg. Volume0
30 Day Avg. Volume82,563
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.64
Price to Sales (P/S)0.45
P/FCF Ratio4.96
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.00Price Target Upside22.14% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.56
Revenue Forecast (FY)$148.54B
Mercedes-Benz Group AG Unsponsored ADR Business Overview & Revenue Model
Company Description
Mercedes-Benz Group AG is an international automotive conglomerate based in Stuttgart, Germany, with roots tracing back to 1886. The company excels in the development, manufacturing, and global distribution of a wide array of vehicles. Its passeng...
How the Company Makes Money
Mercedes-Benz Group AG primarily makes money by selling vehicles and by earning financial-service income linked to those sales.
1) Vehicle sales (core revenue driver)
- Mercedes-Benz Cars: Revenue is generated from the sale of Mercedes-Benz brand...
Mercedes-Benz Group AG Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive financial and operational picture: strong adjusted earnings, solid cash generation, active shareholder returns, clear BEV and technology momentum, and Vans/Financial Services strength. However, material challenges remain — a steep China market decline, related valuation adjustments, ASP and JV headwinds, and expected H2 cost pressures — prompting a cautious near‑term sales outlook. Overall the positives (profitability improvement, cash, product/tech progress) outweigh the negatives (China weakness, lowered sales guidance and H2 headwinds), while management retains a realistic and disciplined tone on execution and cost actions.Positive Updates
Improved EBIT and Strong Adjusted Earnings
Group EBIT as booked of EUR 1.5bn (reported) — 22% above prior year; group EBIT adjusted of ~EUR 2.3bn before sizable adjustments.
Negative Updates
Sharp China Market Contraction and Valuation Charges
Chinese market declined roughly 20%, materially affecting sales; company recorded valuation adjustments/impairments related to China joint‑venture investments (non‑cash), signaling a lower expected future profit contribution from those ventures.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved EBIT and Strong Adjusted Earnings
Group EBIT as booked of EUR 1.5bn (reported) — 22% above prior year; group EBIT adjusted of ~EUR 2.3bn before sizable adjustments.
Read all positive updates
Company Guidance
Mercedes‑Benz reiterated a mixed but disciplined 2026 outlook: Cars sales now expected slightly below 2025 (H1 sales -7% incl. China; China market ~-20% in Q2) with targeted ex‑China growth, xEV share raised to 23–25%, adjusted return on sales guidance confirmed at 3–5% (H1 Cars ROS 4%; Q2 Cars adjusted EBIT ≈€900m) but management expects H2 below H1 and the full year in the lower half of the range; Vans guidance unchanged with H1 Vans ROS ~10.1–10.2% and Q2 Vans adjusted EBIT ≈€450m, full‑year Vans ROS guidance 8–10% and global eVans share ~11%; Financial Services H1 adjusted ROE 14.4% and full‑year ROE raised to 12–14%; group revenue seen slightly below prior year while group EBIT adjusted ~€2.3bn (reported €1.5bn), free cash flow industrial guidance confirmed though full‑year FCF expected slightly below prior year (H1 cash generation ~€3.0bn; Q2 FCF €1.1bn; H1 restructuring cash outs €1.1bn), net industrial liquidity ~€30bn, H1 shareholder returns €5.0bn (dividend €3.3bn; buybacks ~€1.7bn incl. €1.3bn in Q2) and a further share buyback of up to €1bn to be completed before the 2027 AGM; M&A/divestment activity includes €600m realized from Daimler Truck in July and an intended Athlon closing in H2 (not included in FCF industrial).Mercedes-Benz Group AG Unsponsored ADR Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.02B | 132.21B | 145.59B | 153.22B | 150.02B | 133.89B |
| Gross Profit | 21.66B | 22.33B | 28.58B | 34.38B | 34.02B | 30.68B |
| EBITDA | 20.41B | 13.90B | 21.50B | 27.44B | 27.25B | 23.22B |
| Net Income | 5.04B | 5.12B | 10.21B | 14.26B | 14.50B | 11.05B |
Balance Sheet | ||||||
| Total Assets | 259.72B | 255.36B | 265.01B | 263.02B | 260.01B | 259.83B |
| Cash, Cash Equivalents and Short-Term Investments | 17.64B | 19.19B | 21.74B | 18.99B | 24.36B | 29.86B |
| Total Debt | 84.36B | 99.96B | 93.04B | 87.21B | 84.41B | 93.85B |
| Total Liabilities | 166.95B | 161.16B | 171.38B | 170.21B | 173.47B | 186.66B |
| Stockholders Equity | 91.78B | 93.22B | 92.63B | 91.77B | 85.42B | 71.95B |
Cash Flow | ||||||
| Free Cash Flow | 7.06B | 12.03B | 9.07B | 6.26B | 9.99B | 17.23B |
| Operating Cash Flow | 13.87B | 17.30B | 17.73B | 14.47B | 16.89B | 24.55B |
| Investing Cash Flow | -7.67B | -9.20B | -8.75B | -7.32B | -3.45B | -6.23B |
| Financing Cash Flow | -10.07B | -10.45B | -10.75B | -8.39B | -19.03B | -19.06B |
Mercedes-Benz Group AG Unsponsored ADR Technical Analysis
Negative
13.10
Price Trends
13.06
Negative
13.35
Negative
14.53
Negative
Market Momentum
-0.54
Positive
19.70
Positive
-0.02
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 13.1 is above the 20-day moving average (MA) of 12.61, above the 50-day MA of 13.06, and below the 200-day MA of 14.53, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 19.70 is Positive, neither overbought nor oversold. The STOCH value of -0.02 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $219.47B | 8.13 | 11.67% | 3.31% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.40T | 314.06 | 4.58% | ― | 11.75% | -37.64% | |
59 Neutral | $69.59B | 39.14 | 3.04% | 0.88% | -1.11% | -67.59% | |
58 Neutral | $43.43B | 7.57 | 5.43% | 9.18% | -0.30% | -18.13% | |
57 Neutral | $41.83B | -42.80 | -1.40% | 4.25% | 0.81% | -128.78% | |
54 Neutral | $48.93B | -6.51 | -18.90% | 4.96% | 1.47% | -315.47% |
* Consumer Cyclical Sector Average
MBGYY
Mercedes-Benz Group AG Unsponsored ADR
11.20
-4.35
-27.99%
F
Ford Motor
12.10
>-0.01
-0.04%
GM
General Motors
78.27
18.65
31.29%
HMC
Honda Motor Company
31.35
-0.02
-0.06%
TSLA
Tesla
370.59
-59.24
-13.78%
TM
Toyota Motor
181.49
-13.10
-6.73%
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.