Mercedes-Benz
MBG.DE Large CapConsumer Cyclical · Auto Manufacturers
Updated: May 20, 2026, 22:09 UTC
Key Metrics
Valuation Analysis
About the Company
Mercedes-Benz Group AG operates as an automotive company in Europe, Germany, North America, the United States, Asia, China, and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Financial Services segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, vehicle subscription and rental, fleet management, insurance, and digital services related to charging electric vehicles. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
Mercedes-Benz Stock at a Glance
Mercedes-Benz (MBG.DE) is currently trading at €50.01 with a market capitalization of $47.9B. The trailing P/E ratio stands at 9.37x, with a forward P/E of 6.56x. The 52-week range spans from €47.40 to €62.34; the current price is 19.8% below the yearly high. Year-over-year revenue growth stands at -4.9%. The net profit margin stands at 3.74%.
💰 Dividend
Mercedes-Benz pays an annual dividend of €3.50 per share, representing a yield of 7%. The payout ratio stands at 80.52%. The elevated payout ratio reflects a mature dividend policy.
📊 Analyst Rating
24 analysts rate Mercedes-Benz (MBG.DE) on consensus: Buy. The average price target is €60.96, implying +21.89% from the current price. Analyst price targets range from €42.00 to €75.00.
Investment Thesis: Strengths & Weaknesses
- Analyst consensus: Buy
- Currently flagged as undervalued
- Solid dividend yield of 7%
- –Revenue shrinking (-4.9% YoY)
- –Low profitability (3.74% margin)
- –Negative free cash flow
Technical Snapshot
Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).
Risk Profile
The data points to relatively defensive market behavior, higher leverage relative to equity.
Trading Data
💵 Dividend Info
Related Stocks in the Same Sector
Mercedes-Benz 2026: Maybach Top-End, EQ Reset, and the Wobbling 7% Dividend Promise
The Real Story
Mercedes-Benz faces a harder balancing act than BMW in 2026. While BMW is executing a clean Neue Klasse EV plan, Mercedes scrapped its overly ambitious ‘EV-only by 2030’ strategy in 2024 and is now realigning. Q1/2026: Cars revenue €21.4B (-4.2% YoY), adjusted Cars EBIT margin 6.3% (vs. 9.1% in Q1/2024), automotive segment FCF €1.1B.
The structural 2026 story has three levers: (1) the Top-End strategy — Mercedes actively pushes mix toward S-Class, Maybach, and AMG. Top-End is already 16% of Cars deliveries and ~35% of Cars EBIT. (2) the EV reset — new MMA-platform models (CLA EV from summer 2026, GLB EV end-2026) replace the underperforming EQE/EQS platform. (3) the Vans spin-off optionality — Daimler Truck was spun off in 2021; Mercedes-Benz Vans could follow in 2027/28, unlocking €15–25B.
The dominant 2026 investor question is the dividend. Mercedes plans a €4.30 dividend for FY2025 (from €5.30 in 2024) — the second consecutive cut. At the current share price that still yields 7.1%, but market trust is dented.
What Smart Money Thinks
The shareholder register is unusually concentrated: Geely (Li Shufu, via Chinese holding vehicles) at 9.7%, BAIC at 9.98%, Kuwait Investment Authority at 4.0%. Together 23.7% sits in non-trading long-term hands. BlackRock at 5.1%, Vanguard at 3.1%, Norges Bank at 1.2%.
Notable move: Capital Group trimmed its Mercedes position 12% in Q1/2026 while adding to BMW — signaling a sector bias toward premium-margin hardness. Activist attention is at the edges: Cevian Capital floated that a Mercedes Vans spin would make sense in 2025 but has not built a direct position.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
Top-End segment margin is 26.2% in 2026 — nearly double the Cars average. Lifting the Top-End share from 16% to 20%+ by 2028 (Maybach volume doubles) would add about 200 bps of EBIT margin by itself.
Even on the reduced €4.30 base, Mercedes pays a dividend yield only exceeded by Allianz and BMW in the DAX. With €6–8B planned 2026 FCF, the new dividend is 4× covered — a resumption of hikes from 2027 is plausible.
The EQE/EQS platform was a clear 2024/25 drag (~€3B loss). The MMA platform (CLA EV, GLB EV) has 30% lower battery cost and fits the premium price point better. EV losses should roughly halve from 2027.
📉 The 3 Real Bear Points
Mercedes delivered -11.8% YoY in China in Q1/2026 — worse than BMW (-2.3%) and Audi (-7.1%). Premium customers are shifting to BYD's Yangwang line and Li Auto. China is 28% of group EBIT — every percentage point lost costs ~€250M of EBIT.
CEO Källenius declared the ‘EV-only’ strategy in 2021, walked it back in 2024, and rolled out the MMA platform reset in 2025. Three strategies in four years makes mid-term margin forecasts hard to trust — a clear negative for institutional investors.
Mercedes cut the dividend two years running (€5.30 → €4.30). Even though the 7.1% headline still looks attractive, the trust of the German retail base — which traditionally held Mercedes as a dividend anchor — has been shaken.
Valuation in Context
Mercedes-Benz trades at 6.2× 2026 P/E and 2.9× Cars-segment EV/EBITDA. That is cheaper than BMW (5.9× P/E, 2.1× Cars EV/EBITDA) — but reflects the weaker operating margin. SOTP: Cars €32–38B, Vans €8–11B, Financial Services €7B = €47–56B EV minus €14B of net cash = €61–70B equity, ~€56–64 per share. The current price (~€60) is at fair value — the main upside optionality comes from a Vans spin-off (€5–7/share) and China stabilization.
🗓️ Next 3 Catalyst Dates
- June 2026: CLA EV launch — first MMA platform model. The market reaction on range, price, and software determines whether Mercedes can regain EV credibility in 2027.
- September 2026: Q3/2026 earnings with the first H1 update on the Vans spin-off roadmap. The market expects a concrete read on timing and format.
- February 2027: AGM with the €4.30/share dividend vote. Confirmation of stabilization is the prerequisite for multiple expansion.
💬 Daniel's Take
Mercedes-Benz in 2026 is a ‘show-me’ story — the valuation is cheap enough that I cannot ignore it, but the strategy whiplash and China weakness worry me more than BMW. I currently run only 1.5% portfolio weight (vs. 4% for BMW) and will add only after a successful CLA EV launch and a concrete Vans spin-off plan. For pure dividend yield without Mercedes-specific story risk, BMW or Allianz are cleaner.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
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