Mercedes-Benz: Just Before the Numbers

Last Updated: 15. Februar 2024By

Mercedes-Benz has become significantly stronger in recent weeks. The stock has seen an increase of over 6.4% since the beginning of the year. This is not a coincidence, but mainly due to the fact that business is still going well. If you are interested in Mercedes-Benz – perhaps because of the high dividend yield – a major event is now approaching: The release of fourth quarter earnings. The company will report on February 22nd.

In my opinion, the numbers will be good! The figures will primarily concern the year 2023. However, the company will also outline the development for the new year. Despite all the discussions about the location and economic development, the outlook is comparatively positive.

The group will generate a profit of approximately 13.5 billion euros for the entire year, and estimates even go beyond that. The market value of Mercedes-Benz is currently at around 68.3 billion euros. This makes it easy for you to evaluate the stock with traditional key figures. The company has a P/E ratio of approximately 5.1 for the past year. This is both historically very low compared to its own previous valuations, as well as compared to competitors and other stocks.

The price-to-sales ratio (P/S) is also extremely low – at around 0.25 (sales are estimated at 152 billion euros for Mercedes-Benz). Again, this is historically and systematically very low. In short: In my opinion, Mercedes-Benz is simply undervalued.

High dividends for Mercedes-Benz remain The company is known as an excellent dividend payer – and this is unlikely to change for the past year in my opinion. This will not be the subject of the quarterly report. However, it is worth taking a look at expectations: For the past year, you can expect a return of about 7.8% (based on the current price).

For the new year, the market expects a slightly lower dividend – the yield will still be around 7.5% to 7.6%. The market will not offer you much higher, more stable and safer dividends.

Since the stock is also cheap – see above -, the potential for price increases will remain high. Analysts are currently giving a consensus of around 79 euros. This would still be an additional potential of over 20%. So the February 22nd with the quarterly report is interesting for you.

Mercedes-Benz: Just before earnings! – WKN: 710000 – ISIN: DE0007100000 Source: