- Mercedes-Benz revised its forecast for cars’ adjusted return on sales to 7.5% – 8.5%, down from the previous 10% – 11% estimate.
- Analysts had estimated a return on sales of 10.6%.
- The forecast for vans’ adjusted return on sales remains unchanged at 14% – 15%, compared to an estimate of 15.4%.
- Mercedes-Benz Group’s EBIT is now expected to be significantly below the prior-year level; it was previously expected to be slightly below.
- The free cash flow of the industrial business is projected to be significantly below the prior-year level, a downgrade from the earlier forecast of slightly below the prior-year level.
- The company cites a worsening macroeconomic environment, particularly in China, as a key factor for the revised forecasts.
- The sales mix for the second half of 2024 is expected to remain unchanged from the first half, which is weaker than initially anticipated.
- Analyst ratings include 19 buys, 6 holds, and 3 sells.
A look at Mercedes-Benz Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Mercedes-Benz Group is positioned favorably for long-term growth and stability. With top scores in Value and Dividend, the company showcases strong fundamentals and a commitment to shareholder returns. Additionally, a respectable score in Growth indicates potential future expansion opportunities. Despite lower scores in Resilience and Momentum, the overall outlook remains positive due to the company’s solid performance in key areas.
Mercedes-Benz Group AG, known for its wide range of automotive products including passenger cars, trucks, vans, and buses, continues to demonstrate strength in the market. The high ratings in Value and Dividend highlight the company’s reliable financial standing and investor-friendly approach. While there are areas for improvement in Resilience and Momentum, Mercedes-Benz Group’s solid foundation and commitment to delivering value to its shareholders bode well for its long-term prospects in the automobile industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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