Is Mercedes stock a good buy?
Valuation metrics show that Mercedes-Benz Group AG may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of MBGYY, demonstrate its potential to outperform the market. It currently has a Growth Score of D. Tariffs and trade disputes are major factors driving declines in the U. S. China, two of Mercedes’ largest markets. Tariffs imposed by both countries significantly reduce demand and complicate supply chains.Mercedes-Benz Group’s earnings over the next few years are expected to increase by 24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.Mercedes-Benz Group Results Reflect Soft Economic Outlook The decline was driven by softer pricing, mix, lower volumes, negative currency effects, and tariffs partially offset by the implementation of an efficiency program. Tariffs brought 150 basis points of pressure to margins, which is substantial.
Why is Mercedes stock so cheap?
Mercedes, like all luxury cars, sell for way below the original msrp because of supply and demand. The people who regularly buy luxury cars generally buy or lease them constantly. So if someone buys a new Mercedes every year thats a used Mercedes coming on the market every year. Depreciation. Due to the faster depreciation rate of luxury cars, buying a used Mercedes can be more attractive than you think. The value of a Mercedes will see the biggest hit within the first 5 years of its life, this makes the initial purchase price less of a concern if you are looking at a vehicle 5+ years old.Strong Resale Value. Investing in a Mercedes-Benz is not just about luxury and performance; it is also a smart financial decision. Unlike many other vehicles, Benz cars maintain a strong resale value due to their high demand and reputation for reliability.With routine maintenance and care, Mercedes vehicles can remain reliable for 12–15 years or 200,000+ miles. Many owners report decades of ownership, particularly with diesel models or classic sedans such as the E-Class. Long-term reliability is bolstered by: Strong resale value.
Is Mercedes losing market share?
Mercedes-Benz Group AG is experiencing a downturn in China, its largest market, with sales declining by 10% in the first quarter of 2025 due to intense competition and price wars. The year 2024 has been a difficult year for Mercedes-Benz. Between the slowdown in demand for electric vehicles, the stagnation of the Chinese market, the crisis in the luxury sector and the difficulties of the German industry as a whole, the car manufacturer is showing a sharp decline in annual results.Therefore, Mercedes-Benz’s luxury positioning and its costly long-term maintenance fees are parts of its weaknesses in attracting a larger group of consumers in the EV market. Mercedes-Benz underwent several large-scale recalls in its history due to emission scandals and fire risks in its EV model EQS and EQC.