MERCEDES BENZ

Analysis before buying or selling Mercedes Benz shares

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If you are interested in the Mercedes Benz share and wish to invest in this stock, it is recommended that you carry out a precise analysis of this stock beforehand. To do this, we suggest that you discover some useful information about this company and its economic environment, including the elements to be followed in the framework of its fundamental analysis, a presentation of the company and its sources of profit, a presentation of its main competitors as well as its recent partners and its major advantages and disadvantages.

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ISIN code: DE0007100000

Ticker: ETR: MBG

Index or market: DAX

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Elements to consider before selling or buying Mercedes Benz shares

Analysis N°1

We will have to keep an eye on the group's innovations and in particular on the development of hybrid vehicles and more fuel-efficient vehicles.

Analysis N°2

The group's international expansion strategy will also be important, with a particular focus on the company's exploitation of emerging markets around the world.

Analysis N°3

In general, it will be necessary to follow the figures relating to the growth of the luxury car market in the world as well as the evolution of the market shares of each of its major players.

Analysis N°4

Mercedes' activities are closely linked to global growth or crises, so these economic elements will have to be followed with interest.

Analysis N°5

Government regulations and changes in them can also impact Mercedes sales, as can the cost of fuel.

Analysis N°6

It will also be important to keep an eye on the competition in this sector with the main publications of the group's opponents and their market share.

Analysis N°7

Finally, it will of course be necessary to monitor the financial results published each year and each quarter by Mercedes in order to detect variations in profitability and deviations from forecasts or consensus.

Analysis before buying or selling Mercedes Benz shares

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General presentation of Mercedes Benz

In order to effectively anticipate future changes in the Mercedes share price, it is essential to know this company well. Here is a complete overview of the company and its revenue sources.

Mercedes Benz AG, formerly known as Daimler AG, is a German company specialising in the automotive sector. More specifically, Mercedes is currently one of the world's leading car manufacturers.

To better understand the group's activities, they can be divided into different divisions according to the share of turnover they generate, as follows

Vehicle sales represent the largest part of the group's business with 83.3% of turnover. The company sold more than 2.8 million vehicles per year, with 2.5 million passenger cars and light commercial vehicles under the Mercedes-Benz, Smart and Maybach brands as well as 378,518 units of heavy commercial vehicles under the Mercedes-Benz, Fuso, Freightliner, BharatBenz and Setra brands.
The remaining 16.7% of turnover comes from financial services, including financing and insurance.

It is also interesting to know the geographical distribution of the revenues of the Mercedes group, which currently generates 16.4% of its turnover in Germany, 25.3% in the rest of Europe, 24.5% in the United States, 3.3% in North America, 13.8% in China, 12.1% in Asia and 4.6% in the rest of the world.

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The major competitors of Mercedes Benz

While Mercedes is currently one of the world's leading luxury car companies, it has a few notable competitors that you should keep an eye on as you analyse this stock. Here are its main current rivals:

Audi AG

This company is another German car manufacturer specialising in sports and luxury vehicles and is a subsidiary of the Volkswagen group. The company is present in more than 55 different countries around the world and is active in most segments of the passenger car market, including the prestige sports car segment with its subsidiaries Lamborghini and Audi Sport. In terms of vehicles sold and, above all, in terms of profitability, the Audi Group ranks among the leaders in this sector.

BMW

The BMW Group or BMW Group is another German automotive group that has existed since 1916. It specialises in the marketing of motor vehicles with the BMW, Mini and Rolls Royce brands and also in motorbikes with the BMW brand.

Porsche

The Porsche Group is a German car manufacturer specialising in sports cars and was founded in 1931 by the engineer who created the first Volkswagen car. Its main production plant is still based in Germany today and employs over 17,000 people.

Lexus

The luxury car manufacturer Lexus was established in 1989 by the Japanese Toyota Group. It is still the premium division of this group and is headquartered in Japan with headquarters in other countries.

The major partners of Mercedes Benz

Now that you know who Mercedes Benz's main competitors are, let's take a look at some of its allies with its newest partners:

NVidia

Firstly, the German group has recently entered into a partnership with NVidia to collaborate on an in-car computing system. Vehicles equipped with this new system are expected to reach the market in 2024. With the support of the NVidia Drive platform, the carmaker intends to offer powerful autonomous driving functions in the coming years as well as more comfort and safety to its customers.

Luminar

Another partnership has recently been established with the American start-up Luminar, which specialises in LiDAR technology for laser detection and distance estimation. Mercedes plans to install this system in its future vehicles and the sharing of data between the two companies in order to improve automated driving has also been planned. The agreement also provides for Mercedes to take a stake of around 1.5 million shares in the start-up. The LiDAR system is expected to be installed in the next generation of Mercedes cars to improve safety and autonomous driving on motorways. No details on the car models that will be equipped have yet been provided by the two groups.

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The factors in favour of a rise in the Mercedes Benz share price:

The Mercedes share has a number of advantages and disadvantages which correspond to the strengths and weaknesses of this company and which we propose to explore in detail here.

Let's start by listing the main strengths of this group:

First of all, the Mercedes group currently enjoys a very strong brand image and leading status in the premium car sector.
Another strength of the company is its financial position. It is particularly strong and offers a high level of cash flow, which enables it to make regular strategic investments.
The Mercedes Group is also a pioneer in innovation. The company was the first to introduce diesel engines, fuel injection and anti-lock brakes. Every year, the group spends several billion dollars on research and development.
Another strength of the group is its visibility with a strong presence in the world of motorsports through McLaren Mercedes in Formula 1, which contributes to its international reputation.
The fact that the Mercedes group has its vehicles produced in some twenty different countries around the world also enables it to deliver its products more quickly and to limit transport costs.
The group also benefits from a number of patents in customer security devices which generates a significant additional revenue stream.
The group's communication and its strategic investments in communication and marketing are also one of its main assets today. It uses the various media to communicate and has a strong presence in many sporting events as a partner or sponsor.
It is also worth noting that Mercedes has recently invested a lot of money in the development of hybrid and electric vehicles in order to complete its luxury range with environmentally friendly vehicles. The same applies to autonomous vehicles.

The factors in favour of a drop in the Mercedes Benz share price:

Of course, the Mercedes Group does not only have its strengths, but also some weaknesses that you should be aware of. Here are the main drawbacks and shortcomings of this group and its stock market share:

Firstly, it should be noted that while competition in the luxury car segment is relatively limited, it is no less strong and intense, resulting in limited growth in the group's market share.
The fact that Mercedes only produces top-of-the-range vehicles is a hindrance to its possible growth, as it targets only a very small part of the population and deprives itself of a large number of potential customers.
Finally, as a global car brand, the Mercedes group may face image problems which will have a strong influence on its sales and therefore on its future profitability.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the largest shareholders in the Mercedes Benz Group?

At present, the largest shareholders of Mercedes Group are Beijing State Owned Asset Supervision & Administration with 9.98%, Shu Fu Li with 9.69%, Kuwait Investment Authority with 6.80%, Harris Associates with 2.98%, Deka Investment with 2.32%, BlackRock Advisors UK with 1.68%, Amundi Asset Management SA with 1.62%, Renault SA with 1.54%, Nissan Motor with 1.54% and Credit Suisse Asset Management with 1.07%. The rest of the capital is free-floating.

On which stock exchanges and stock indices is the Mercedes share listed?

The Mercedes Group is a German group. As such, its stock is currently listed on the Prime Standard segment of the Deutsche Börse Xetra market. But as it is also one of the largest market capitalisations in the country, the share is also included in several stock market indices, including the DAX 40, the Euro Stoxx 50, the FTSE Eurotop 100, the Stoxx Europe 50 and the Stoxx Europe 600.

Which analysis should be used for Mercedes Benz shares?

In order to make a good analysis of the Mercedes share, you need to combine technical analysis and fundamental analysis of this stock. The former will use the stock charts of this stock as well as its historical and current variations to define trends and the latter will use the news and publications of this company and its sector of activity.

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