Daimler AG (DDAIF) Last Update 5/7/21
Related: F HMC GM TM
% of Stock Price
Revenue
Gross Profits
Free Cash Flow
Daimler AG
STOCK PRICE
DIVISION
% of STOCK PRICE
Daimler Mobility
13.0%
$13.54
Net Debt
6.5% $6.76
TOTAL
100%
$104.05
$97.29
Yours
Trefis Price
N/A
$95.01
Market
 
Top Drivers for Period
Key Drivers
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TREFIS Analysis


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RECENT NEWS AND ANALYSIS

Potential upside & downside to trefis price

Daimler AG Company

VALUATION HIGHLIGHTS

  1. Mercedes Benz Cars & Vans constitute 58% of the Trefis price estimate for Daimler AG's stock.
  2. Daimler Trucks & Buses constitute 29% of the Trefis price estimate for Daimler AG's stock.
  3. Daimler Mobility constitutes 13% of the Trefis price estimate for Daimler AG's stock.

WHAT HAS CHANGED?

  1. Latest Earnings

For Q1 2021 the company recorded revenue at $48.8 billion, up by 18.6% y-o-y. The earnings rose to $4.77 compared to $0.10 in the same period of the previous year. Overall the company saw a 13% rise in sales volume to 728.6K vehicles sold for the quarter. Mercedes-Benz cars and Vans saw a sales volume of 627.2K up 15%. Daimler Trucks & Buses saw a fall in sales volume to 101.3K, up 4% for the quarter.

  1. Coronavirus

Due to the pandemic many countries have locked down all non-essentials activities in their region. This has led to a many manufacturing units being closed down to control the risk of the pandemic. Sales grew in Q3 & Q4 as countries opened lockdowns and eased restrictions.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

  • Total Mercedes Benz Cars Sold Globally:Growth in total Mercedes Benz Cars sold globally is strong and we expect this growth to continue over our forecast period. We expect this number to grow steadily once the coronavirus pandemic situation gets clearer. A faster growth can lead to a significant upside in our price estimate.

BUSINESS SUMMARY

Daimler AG (Daimler) is the parent company of the Daimler Group. The company is engaged in the development, manufacturing, distribution, and sales of a wide range of automotive products but mainly, passenger cars, trucks, vans, and buses. Daimler has operations mainly in the US and Germany and sells its vehicles worldwide under various brands such as Mercedes-Benz, Maybach, Smart, Freightliner, Fuso, Western Star, Detroit Diesel, BharatBenz, Orion, and Setra.

SOURCES OF VALUE

The Mercedes Benz Cars division is the most valuable business for Daimler AG. It is more valuable than all the other divisions combined.

We estimate that high prices and unit sales of Mercedes Benz contribute the maximum value for its business. Mercedes Benz can fetch higher prices because of its strong brand name. It hopes to tap onto emerging markets such as China, India, Russia, and Latin America, to help increase sales and grow market share. The International vehicle market three-and-a-half times larger than the North American vehicle market.

KEY TRENDS

Mercedes-Benz aims to penetrate the electric vehicle market

  • Demand for electric vehicles is rapidly rising around the world mainly due to a relatively less harmful impact on the environment and lower running costs, as compared to gasoline-powered engines. In addition, governments around the world provide various incentives to boost electric vehicle sales. Moreover, plugin electric vehicles (PEVs) also have lower battery prices, adding to their appeal. However, sales of these vehicles haven't picked up as previously estimated primarily due to lower ranges, and lack of infrastructure supporting battery charging.

  • But with more and more companies developing electric cars with higher ranges and building charging stations, plug-in sales are expected to continue growing at a fast pace.

  • By 2022, Mercedes-Benz Cars aims to electrify their complete range of passenger cars. In total they plan to offer more than 130 electrified vehicles.

Fast growing luxury vehicle market in China to provide growth impetus


  • Consumption of young-generation consumers (ages below 35) is growing at 14% annually, which is twice that of consumers older than 35. The newer generation also typically has a more sophisticated taste, and is more free-spending. The growth in the upper-middle class and the emergence of the new generation is expected to increase sales of high-value products, including automobiles. In FY 2018, while the overall market was declining, the company gained momentum in China with a sales increase of nearly 11%.