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Deep Value: cash covers about 95% of the stock price

This company holds roughly $41.3B in cash and investments — about 95% of its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Mercedes-Benz Group AG logo

Mercedes-Benz Group AG

MBG.DE
41
Auto - Manufacturers · Consumer Cyclical
Price
€45.22
+0.42 (+0.94%)
Market Cap
€43.29B
Exchange
Frankfurt Stock Exchange (XETRA)
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Strong
Stability
Weak
Valuation
Strong
Dividends
Exceptional

Share count falling — buybacks

6.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.07B (2021) → 998.3M (2025)

Winston Score History

The full picture

Mercedes-Benz Group AG is a German automaker that designs and sells luxury cars, SUVs, and vans under the Mercedes-Benz and Mercedes-AMG brands. It also owns Mercedes-Benz Financial Services, which helps customers finance and lease their vehicles. The company is one of the oldest and most recognized names in the global automotive industry, with roots going back to the invention of the gasoline-powered car in the 1880s.

Mercedes-Benz makes money primarily by selling vehicles and through its financial services arm, which earns interest and fees on loans and leases. It operates globally, with major markets in Europe, China, and the United States, and generates roughly €150 billion in annual revenue. The company's brand reputation and focus on premium pricing give it some pricing power compared to mass-market automakers, but its biggest challenge is navigating the costly shift to electric vehicles while managing slowing demand in China, which has historically been its largest and most profitable market.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
19.0%
Thin — 19.0% gross margin
Profit after running costs
Operating Margin
6.0%
Modest — 6.0% operating margin
Return on the money invested
ROCE
2.6%
Weak — 2.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
-7.1%
Shrinking sales (-7.1% YoY)
Profit growth
EPS YoY
-25.7%
Earnings shrinking (-25.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
275%
Turns 275% of profit into real cash
Spare cash per sale
FCF Margin
6.2%
Modest free cash flow (6.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.10
Elevated debt (1.10)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
8.6x
Attractive valuation — P/E 8.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+2.9
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
7.85%
Healthy income — 7.85% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
+74.3%
Dividend growing fast (74.3% YoY)

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