Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DAIMLER AG-REGISTERED SHARES. We currently have 36 research reports from 1 professional analysts.
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DAIMLER AG-REGISTERED SHARES
DAIMLER AG-REGISTERED SHARES
Head of Trucks leaves early and unexpectedly
12 Feb 17
Wolfgang Bernhard is leaving Daimler with immediate effect and before his contract expires in February 2018. Why Bernhard has decided to leave the company has not been published, but it clearly came as a surprise for his colleagues and the Supervisory Board. Speculations suggest that Bernhard’s latest cost reduction programme has to be implemented by a manager who has a long-term contract rather than one that expires in a year. Details of the programme were expected to be released in March, but this might now be in jeopardy as the CEO, Zetsche, who will temporarily take responsibility for trucks, might not be able to do so. Trucks are currently suffering from extremely weak demand in North and Latin America which cannot be compensated by continuously strong demand in Europe.
Good volume but disappointing revenue, net profit and dividend numbers
02 Feb 17
Car and van deliveries were both sharply up in 2016 whereas truck and bus deliveries fell. These numbers are no major surprise, but revenue of just above €153bn is some €1bn short of our projection. Daimler’s final accounts are not yet out, but the publication of preliminary numbers show a 2% EBIT fall to €12.9bn (we had €12.0bn) and a 1% profit (before minorities) increase to slightly less than €8.8bn while we had expected it to increase to €9.1bn. Because of almost unchanged earnings, the dividend is maintained at €3.25 while we had expected an increase to €3.40. That earnings are disappointing is also reflected in the bonus paid to the employees of the parent company who are entitled to it. This fell from €5,650 paid for 2015 to €5,400.
Car delivery growth remained strong throughout 2016
09 Jan 17
Deliveries were up by 9.0% to 204,978 Mercedes-Benz and Smart cars which brought the full-year number to 2.23m, an increase of almost 12%. Asia (+13% to 71,583) and Europe (+11% to 88,773) continued to be the most prosperous regions for Daimler while deliveries fell by 1.8% to 38,547 in Nafta. The respective full-year numbers were +21% to 761,045, +13% to 1.01m, and +0.6% to 404,225. During the course of 2016, the model mix changed slightly. While S-class deliveries fell strongly (-19% to 7,487 in December and -18% to 88,520 in the full-year), SUVs experienced very sharp demand (+9% to 65,824 and +34% to 706,170, respectively). The newly-introduced E-class has started to show positive growth (+14% to 31,272 in December), but the volume is still down by 1.7% to 296,324 for the full-year. Smart was very successful throughout last year with volume growth of 47% to 14,709 in December and 21% to 144,479 in the full-year.
To fight Uber, Daimler and BMW might merge their car-sharing operations
16 Dec 16
Car2go (Daimler) and Drive Now (BMW) might be merged into one company which, according to the media, allows both to fight Uber more successfully. Together they are believed to operate more than 20,000 cars worldwide, of which 2,500 electric cars and 6,000 in Germany. The German car-sharing market is believed to have a fleet of 7,000 cars, i.e. BMW and Daimler together have a market share of more than 80%. Uber is currently testing self-driving cars in the USA, but has experienced a backslash in California. As Uber has not applied for permission to test-drive these cars, Californian authorities have forbidden these cars with immediate effect.
November was again a superb month
06 Dec 16
Passenger car delivery growth was +12.9% to 195,167 in the last month which brought the ytd number to 2.02m, an increase of 12.2%. Mercedes-Benz’s respective delivery numbers were +12.7% to 182,602 and +11.8% to 1.89m, whereas the Mini’s growth rates were stronger (+16% to 12,565 and +19% to 129,770). Disproportionate growth continued to be achieved with SUVs (+18% to 61,266) in November, although this was lower than in the months before (+38% to 640,346 ytd). On the other hand, the all-new E-class is starting to show strong growth. This volume increased by 20% to 29,632 in November but it was still down by 3.3% to 265,052 ytd. In addition, the C-class continued doing well (+11% to 41,923 and +4.1% to 438,705, respectively). The current S-class has been produced since 2013 and new competition (e.g. BMW model 7) has taken market share. As a result, its deliveries fell by 20% to 6,741 in November and by 17% to 81,033 ytd. The regional distribution showed positive growth everywhere, but delivery growth in Nafta was quite subdued (+3.9% to 36,159 and +0.9% to 365,678) whereas growth was very strong indeed in both Europe (+15% to 87,577 and +13% to 917,607) and APAC (+17% to 66,631 and +22% to 689,462).
Where will Daimler build the batteries?
06 Dec 16
The group has one small battery factory in Kamenz (Saxony) with 350 employees which has been producing lithium-ion batteries since 2012. This plant will be expanded by a second one and a total of €500m will be invested. At the same time, employees in Stuttgart, where most of Daimler’s employees are located, argue that batteries have to be manufactured there as well. These employees concentrate on combustion engines today and see demand falling in the future. As a result, they see employment falling in the Stuttgart area while it is expected to increase in Saxony, which they intend to prevent. Management has made it clear that battery technology is a core component for the group in the future and that the batteries will be built in several plants. Battery R&D is concentrated in Stuttgart and the production hub will be in Kamenz. Other plants (most probably outside Germany) will be duplicates of the Kamenz plant which is the reason why investments for the other plants are expected to be limited to another €500m in total.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Root & branch review – early margin positive
23 Feb 17
Unilever (ULVR LN, HOLD, T/P 3800p) announced yesterday that it will publish the findings of a root and branch review in April 2017. This is stated as being a result of the recent approach made to them by KraftHeinz (KHC US, N/RO), an offer which quickly lapsed.
A compelling global brand roll-out story
22 Feb 17
We believe that SuperGroup remains one of the most undervalued global brand roll-out stories within the UK retail sector. The stock trades at c20% discount to its UK peers on a 1YF EV/EBITDA basis despite best-in-class revenue growth and profit margins. SuperGroup operates a leading multi-channel proposition, has strong sales momentum across each channel and forecast risk remains on the upside. We initiate coverage on the shares with a buy recommendation and price target of 1898p, implying upside of 27.8% over the prevailing market price.
High single digit EPS growth remains on track
17 Feb 17
BAT (BATS LN, HOLD, T/P 5300p) announce their preliminary 2016 results on Thursday 23rd February. We forecast revenue to increase 13% to £14.8bn, in line with Bloomberg consensus, and adjusted diluted EPS to continue its positive momentum to 249p (232p FY2015). Analyst consensus is 246p.
Despite offer lapse, Unilever remains under pressure
20 Feb 17
Unilever (ULVR LN, HOLD, T/P 3800p) announced yesterday that it is no longer subject to a £40 per share offer from KraftHeinz, which valued Unilever at 14x EV/EBITDA and a 24x P/E ratio. The announcement was made jointly with Kraft Heinz. While the offer lapse will probably prompt Unilever’s shares to open lower – they rose 13.3% on Friday – longer term changes may be more positive.