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Mercedes-Benz Group AG

MBGYY
46
Auto - Manufacturers · Consumer Cyclical
Exchange
Other OTC
Winston Score
46
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
Good

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 brand. It also owns the AMG performance sub-brand and the Mercedes-Maybach ultra-luxury line. The company sells vehicles to individual buyers and fleet customers worldwide, competing at the premium end of the global auto market.

Mercedes-Benz earns money primarily through vehicle sales, but also through its financial services arm, which offers loans and leases to car buyers. It operates globally, with major markets in Europe, China, and North America, generating roughly €150 billion in annual revenue. Its brand reputation and engineering heritage give it pricing power over mass-market rivals, but the company faces serious pressure from slowing demand in China — its largest single market — and the costly transition to electric vehicles, where it competes against established EV makers and new Chinese brands gaining ground quickly.

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
3.1%
Weak — 3.1% 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
-6.3%
Shrinking sales (-6.3% YoY)
Profit growth
EPS YoY
-24.0%
Earnings shrinking (-24.0% YoY)

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

How steady the profit is
EPS Consistency
2/8 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
5.4%
Thin free cash flow (5.4%)

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
0.90
Moderate — manageable debt (0.90)
Covers its interest
Interest Cover
45.52x
Comfortably covers interest (45.5x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
9.8x
no trend
Attractive valuation — P/E 9.8

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

Cheaper or dearer next year
P/E vs Forward
+4.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (9.8 → 5.9)

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Dividends

Dividend
Dividend Yield
7.43%
no trend
Healthy income — 7.43% yield

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

Dividend record
Dividend Growth
-20.4%
no trend
Dividend cut (-20.4% YoY) — warning sign

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