Rankings Autos & parts Mercedes-Benz
Mercedes-Benz
67
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Margin−8
- China−6
- Quality of growth−4
Strengths
- Net cash (industrial)+3
- Vans and Financial Services+2
How the score is built
From 100 to 67, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 40.90 EUR
- Median analyst target
- 51.00 EUR
- Upside to median
- +24.7%
- Analysts
- 21
- Target range
- 32.00 – 73.80 EUR
- 52-week change
- −27%
- P/E (trailing)
- 7.2
- Forward P/E
- 6.5
- PEG
- 0.83
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 5 findings−20 of −30
- −8MarginThe adjusted return on sales at Mercedes-Benz Cars was 4.0% in Q2 2026 (5.1% a year earlier), and management now expects the lower half of its 3–5% guidance for 2026, vs 12–14% in 2022–23. The group operating margin is 6.0% TTM vs 11.5% in 2022–23, and the gross margin has fallen from 22.0% to 16.2%.
- −3ROICROIC has fallen from 7.2% (2022) and 7.0% (2023) to 3.7% TTM, and ROE from 18.6% to 5.6%. The figure is pulled down by the financing arm, but the trend (halved returns) is the same in the car business.
- −4Quality of growthNeither bigger nor stronger: revenue is €129.5bn TTM vs 152.4bn in 2023 (−7% TTM), EPS 5.28 vs 13.46. Car sales fell 8% in Q2, and the average selling price fell from €67,700 to 64,700, so pricing power in the luxury segment has weakened.
- −3Future segment (EVs and software)EV sales rose 51% in Q2 (87% in Europe), but from a low level: the xEV share is expected to be only 23–25% in 2026. In China, the largest market, Mercedes is losing to local brands strong in EVs and software, and sales in China fell markedly while the market fell about 20%.
- −2Capital allocationIn H1 2026 €3.3bn was paid in dividends and €2.0bn of own shares bought, €5.3bn in total, vs industrial FCF of €2.96bn (4.22bn a year earlier, including €1.1bn of severance payments). Full-year FCF is expected slightly below €5.4bn, so payouts exceed FCF and erode net liquidity.
Price
Today's multiples against the company's own history and its peers. · 1 finding−4 of −35
- −4Multiples vs own history and peersA mixed picture on low earnings: trailing P/E 7.9 vs 3.1–11.2 in 2021–25 (median 4.6), forward P/E (2026e) 7.5 vs 5.3–9.0 (average about 6.4), EV/EBIT 15.6 vs 9.0–20.1. P/B 0.41 is the lowest in the period (0.54–0.99), and P/FCF 4.8 is mid-range (3.6–6.1). The earnings multiples are above history because earnings have halved; peers: BMW forward 8.4, Volkswagen 4.1.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−15 of −35
- −6ChinaThe Chinese market fell about 20% in H1, and Mercedes' sales in China fell markedly. Mercedes wrote down its Chinese investments (including a joint venture) by €844m in Q2, and the Chinese JVs contribute lower earnings. China was the company's largest market in 2025.
- −3US tariffsTariffs cost about €1.1bn in 2025 and were a main reason operating profit fell 57% to €5.8bn. Tariffs on EU cars keep squeezing the margin in 2026, and a large part of US sales is imported from Europe.
- −4Regulation (Chinese ownership in the US)A US bill would ban carmakers with over 15% Chinese ownership from selling in the US for five years. BAIC (9.98%) and Geely founder Li Shufu (9.69%) together own about 19.7% of Mercedes. A Senate committee passed the bill in July; Mercedes wants the limit raised to 25% and could get a deadline to 2030 or a waiver, but the bill has not yet been passed.
- −2Execution (full-year targets)UBS points out that the full-year targets depend on a strong fourth quarter. Berenberg cut its target from €56 to 52 in September, and the stock trades just above its 52-week low of €41.05.
Plus
Only documented strengths. · 2 findings+5 of +15
- +3Net cash (industrial)Net liquidity in the industrial business was €30.4bn at 30/6/2026, about 80% of market value, after dividends and buybacks.
- +2Vans and Financial ServicesVans delivered an adjusted return on sales of 10.2% in Q2 (above guidance of 8–10%), and Financial Services' adjusted EBIT rose 70% to €492m; return-on-equity guidance for Financial Services has been raised from 10–12% to 12–14%.
Caveats
What the score does not capture, or where the data is weak.
stockanalysis' net debt of €85bn and EV of €124bn include Mercedes-Benz Financial Services' loan book; the industrial business itself has net liquidity of €30.4bn (about 80% of the €38bn market value). EV multiples and ROIC are therefore distorted and used only cautiously. Cyclical = yes (car sales follow the economy and credit). The share trades close to its 52-week low (€41.05), RSI 27. The 8.5% dividend yield rests on the dividend for 2025 (€3.50); analysts expect €3.16 for 2026. Q3 comes 28/10.
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