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Mercedes-Benz Group AG

MBG.WA
48
Auto - Manufacturers · Consumer Cyclical
Also trades as: MBGAF
Exchange
Warsaw Stock Exchange
Winston Score
48
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
Strong
Valuation
Exceptional
Dividends
Exceptional

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 AMG brands. It also owns Mercedes-Benz Vans, which makes commercial vehicles for businesses. 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 directly to consumers and through dealership networks, with additional revenue from financial services like car loans and leases. It operates globally, with major markets in Europe, China, and North America, and generates over €150 billion in annual revenue. The company's brand reputation and focus on the premium segment give it some pricing power, but its main risk is heavy exposure to China, where demand has softened and local electric vehicle competitors are gaining ground rapidly.

Score breakdown

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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
2.4%
Weak — 2.4% 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
-6.9%
Shrinking sales (-6.9% YoY)
Profit growth
EPS YoY
-23.7%
Earnings shrinking (-23.7% 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
39.00x
Comfortably covers interest (39.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
8.6x
no trend
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
+7.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (8.6 → 1.4)

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Dividends

Dividend
Dividend Yield
7.30%
no trend
Healthy income — 7.30% yield

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

Dividend record
Dividend Growth
+67.1%
no trend
Dividend growing fast (67.1% YoY)

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