Analysis of the latest results of Mercedes-Benz AG
Key figures compared to Bloomberg consensus:
Car deliveries 503,573 units (-1%).
Revenues: €34,528 million (-6.7% YoY) vs. €36,550 million estimated.
EBIT 2,517 million euros (-48.0%) vs. 2,590 million euros estimated.
BNA 1.72 million euros (-52.3%) vs. 2,315 million euros estimated.
Opinion on the results of Mercedes-Benz AG
Very weak figures that lead us to confirm our Sell recommendation. The EBIT margin, a key profitability indicator in the automotive sector, fell to 4.7%. This compares with a margin of 12.4% last year, 8.13% expected by the consensus and even below the Company's own guidance. As a reference, Mercedes issued a profit warning in September, lowering the EBIT margin guidance to 7.5%/8.5% in the automotive segment (vs. 10%/11% previously).
The figures confirm that the automotive sector is facing significant challenges. Therefore, despite the low price multiples (PER 6.0x 2024e and 5.7x 2025e), we maintain our Sell recommendation. Mainly because: (i) the macro context in China is deteriorating and the outlook is not encouraging. And (ii) despite the profit warning issued in September, the 3Q 2024 results are significantly worse than expected.