Why is the Mercedes share price falling?
The automaker’s latest earnings report and outlook weighed heavily on the stock midweek. Mercedes-Benz suffered a sharp drop in second-quarter profits, attributed in part to U. S. Mercedes-Benz’s revenue fell short of expectations in the second quarter of 2024. The German luxury carmaker anticipates continued weak demand and has adjusted its margins guidance downward.Shares in Mercedes-Benz dipped 1% on Wednesday morning after the German carmaker reported plunging profits in the second quarter. The company said that group revenue and earnings before interest and tax (EBIT) were both impacted by tariffs in the quarter, falling 10% to €33.BLEAK OUTLOOK. After a 30% slump in earnings in 2024, and 40% in its cars division, this year will see earnings fall even further, Mercedes-Benz said, expecting a rate of return in its car division of just 6-8%.
Is Mercedes-Benz a good buy?
Mercedes vehicles have strong safety ratings from NHTSA and IIHS. Models like the E-Class and GLE-Class earn top safety marks, contributing to the brand’s dependability reputation. Owning a Mercedes can be costly, with average annual repair costs around $908. Mercedes-Benz’s customer base primarily consists of affluent individuals, including professionals, executives, and entrepreneurs. These customers are typically in the higher income brackets, allowing them to afford luxury vehicles. The brand also targets younger generations through initiatives like ‘Generation Benz’.Mercedes-Benz Cars wants to make the transformation towards an all-electric future profitable and to continue its growth in the lucrative market segments. This is underlined by the strategic target of an adjusted return on sales of 10% or higher.Mercedes-Benz is owned by the German company Daimler AG, an automaker who produces a wide variety of upscale, luxurious vehicles such as buses, motorcycles, and cars.The company is currently addressing its profitability by improving step by step, and hopefully executing on its more improved mix and strategy going forward. In any future scenario, I view Mercedes-Benz as undervalued here, and that is why I give the company a Buy rating and consider it cheap.
What is the target market for Mercedes-Benz?
Mercedes-Benz’s customer base primarily consists of affluent individuals, including professionals, executives, and entrepreneurs. These customers are typically in the higher income brackets, allowing them to afford luxury vehicles. The brand also targets younger generations through initiatives like ‘Generation Benz’. Total debt on the balance sheet as of September 2024 : $101. Billion USD. According to Mercedes-Benz’s latest financial reports the company’s total debt is $101. Billion USD.Revenue for Mercedes-Benz is projected to reach US$111bn in 2025. Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 2. US$121bn by 2029. Mercedes-Benz unit sales are expected to reach 2.
Is Mercedes stock a good buy?
Mercedes-Benz Group Ag has a consensus rating of Moderate Buy which is based on 5 buy ratings, 9 hold ratings and 0 sell ratings. The average price target for Mercedes-Benz Group Ag is 71. This is based on 14 Wall Streets Analysts 12-month price targets, issued in the past 3 months. Mercedes-Benz Corporation has been a division of a larger German automobile manufacturer, Daimler AG—but as of February 1, 2022, Daimler AG is now officially known as Mercedes-Benz AG!Mercedes-Benz, which is best known for its luxury vehicles, is a subsidiary of Daimler AG. Freightliner, Thomas Built Buses, Detroit Diesel, and Smart Automobile are also part of Daimler.As of now, Mercedes-Benz is owned by Mercedes-Benz Group AG, a company formerly known as Daimler AG. The rebranding in February 2022 wasn’t just a name change; it was a declaration of the company’s dedication to its most iconic brand.Overview of Mercedes-Benz Group AG shareholders. The Chinese BAIC Group currently holds 9. Mercedes-Benz Group AG’s largest individual shareholder. Other major shareholders include the Chinese investor Li Shufu (since 2018) and the Kuwait Investment Authority (since 1974).Mercedes-Benz (Daimler) are BMW (BMW Group) and Audi (Volkswagen Group). On non-European markets there is a competition also with Lexus (Toyota). Also, is a luxury-cars segment, Mercedes-Benz has a rivalry with Rolls-Royce (BMW Group), Bentley (Volkswagen Group) and Range Rover (Tata Group).