
- Mercedes projects cars’ adjusted return on sales (ROS) to be between 6% and 8% for 2025, with an estimate of 7.91%.
- Vans are expected to achieve an adjusted ROS of 10% to 12%, with an estimate of 12.8% for 2025.
- For 2024, Mercedes reported an EBIT of €13.60 billion, a 31% decrease from the previous year.
- The dividend per share for 2024 was €4.30, down from €5.30 in the previous year, and just shy of the estimated €4.32.
- Profit for the year was €10.41 billion, reflecting a 28% drop year-over-year, but surpassing the estimate of €9.87 billion.
- Sales for 2024 reached €145.59 billion, a 4.5% decline year-over-year, slightly missing the estimate of €145.85 billion.
- Industrial free cash flow was reported at €9.15 billion, exceeding the estimate of €8.49 billion.
- Vans achieved an adjusted return on sales of 14.6%, slightly down from 15.1% the previous year, with an estimate of 14.8%.
- Vans’ adjusted EBIT was €2.83 billion, narrowly missing the estimate of €2.87 billion.
- Mercedes forecasts that group revenue and EBIT in 2025 will be below the previous year’s levels.
- Group free cash flow from the industrial business is expected to significantly decrease in 2025 due to lower EBIT in the Cars and Vans segments.
- Mercedes plans a share buyback program worth up to €5 billion over 24 months, contingent on AGM approval in May 2025.
- The company has initiated a performance enhancement program aiming to improve global production efficiency and cut production costs by 10% by 2027.
A look at Mercedes-Benz Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
Mercedes-Benz Group AG, a prominent automobile company, seems to have a bright long-term outlook according to Smartkarma’s Smart Scores. With top scores in Value and Dividend, the company is evidently positioned well based on these factors. Additionally, a strong score in Growth indicates promising potential for expansion and development in the future. However, the lower Resilience score may suggest some vulnerability to economic challenges or market fluctuations. Nonetheless, the Momentum score reflects a positive trend that could drive further success for the company.
Overall, Mercedes-Benz Group appears to be in a favorable position in terms of its financial outlook, especially with high ratings in Value and Dividend. While there may be some resilience challenges to address, the strong Growth and Momentum scores indicate potential for continued growth and success in the long run. With a diverse range of automotive products and complementary services, Mercedes-Benz Group is likely to maintain its competitive edge in the market and capitalize on opportunities for further expansion and profitability.
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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