Influence of Mercedes-Benz Group on the EURO STOXX 50
Mercedes-Benz has been part of the EURO STOXX 50 since 1998 and has thus been represented in the index from the beginning. In December 2024, the weighting of the stock was around 1.10%, ensuring a stable but modest influence on the overall index performance. Want to know more about the complete composition of the EURO STOXX 50? Read all about it here.
Mercedes-Benz's share price is influenced by factors such as global car sales, economic growth, the transition to electric vehicles, and developments in the Chinese market. Due to its strong position in the premium segment and continuous investment in technology, the company remains relevant among the top European stocks.
Investment analysis & outlook
Below is the price performance of Mercedes-Benz compared to the EURO STOXX 50 over the past five years. While the index posted a +71.22% rise, Mercedes-Benz recorded an impressive +132.69% share price appreciation. This strong performance reflects investor confidence in the company's long-term strategy.
In the third quarter of 2024, Mercedes-Benz saw its net profit fall by more than 50%, partly due to a 17% drop in sales in China and 25% in Germany. In response, management announced a series of cost-cutting measures and stressed its intention to focus further on the premium segment and electric vehicles. At the same time, a share buyback program worth up to five billion euros was announced, subject to shareholder approval.
Despite these challenges, Mercedes-Benz continues to invest in the future, with a strong emphasis on innovation and sustainability. The success of this strategy will depend on the recovery of the Chinese market, positioning against emerging competitors, and the ability to continue to innovate efficiently within the luxury car segment.
News & updates
Mercedes-Benz announced several drastic measures in the fall of 2024 following a sharp drop in profits. Net profit halved in the third quarter due to disappointing sales in China and Germany, among other countries. In response to the market pressure, management announced that it will implement sharper cost savings in the coming period.
In addition, a share buyback program of up to €5 billion was proposed, intended to restore investor confidence. The dividend was also reduced to €4.30 per share, responding to Mercedes-Benz's need to remain financially robust in a challenging economic environment.
Despite this difficult period, the company maintains its long-term vision: leadership in the premium segment, accelerated electrification of the vehicle fleet, and technological innovation, fueled in part by knowledge from Formula 1.
With this combination of strategic choices and readjustment in policy, Mercedes-Benz seeks to adapt to changing market dynamics and lay the foundation for future recovery.
For more information about Mercedes-Benz, please visit: www.mercedes-benz.com.
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