General presentation of the Daimler Company:
Daimler is one of the leaders in the international car manufacturing market and number one in Germany. Its extremely large turnover is generated by various activities including vehicle sales, providing financial or insurance services, and of course motor vehicle manufacturing and production.
The vast majority of its activity is carried out in Germany and Europe, but its activity also extends to the United States, America and Asia.
Knowing Daimler shares competition:
You need to know and analyse Daimler's direct competitors in its industry as part of your analyses.
- The BMW group: a top-of-the-range, sporty and luxurious German automobile and motorcycle manufacturer which was also an aircraft manufacturer. This company is part of the BMW group and marketed over 2 million motor vehicles and 123,000 two-wheelers in 2018.
- The Audi group: another car manufacturer in direct competition with Daimler that offers luxury and sports cars on the market. It's a subsidiary of the Volkswagen group which possesses 99.55% of the capital. The company is established in over 55 different countries worldwide and is present in most segments of the passenger vehicle market particularly thanks to its various subsidiaries such as Lamborghini or Audi Sport. The company is currently positioned among the most profitable companies in this sector of activity.
- The Opel group: This is without probably the last direct competitor of Daimler and also of a German car manufacturer which is a subsidiary of the French group PSA and which was formerly a subsidiary of the General Motors group.
The strategic alliances set up by the Daimler group:
The Daimler group also started several partnerships with competing groups and from different activity sectors that you can check out here in more detail.
- Renault & Nissan: For example, Daimler signed a partnership with Renault and Nissan in 2010 via an exchange of cross shareholdings which allowed them to pool the production of certain parts and allowing them to significantly lower their production cost, making them more competitive.
- Bosch: More recently, in 2017, Daimler became partners with the Bosch group in a joint project to develop an autonomous vehicle which should take form in the years to come.
- Uber: This type of autonomous vehicle project was also the subject of a recent partnership between Daimler and Uber in February 2017.
Introduction and stock quote for the Daimler share:
Since its creation, the Daimler group has continued to boost its turnover with increasing profits over the years.
Stock market data
To understand the challenges of the Daimler share on the stock market, it's also important to read some more general information about this stock. Here are some facts to know:
- In 2019, the Daimler Company had a total market capitalization of EUR 57,033.17.
- The number of securities issued by Daimler and in circulation on the market is around 1,069,840,000.
- The Daimler share price is currently listed on the Prime Standard market of Deutsche Boerse AG in Germany.
- Daimler is also included in the composition of the DAX 30 national stock market index.
- The shareholding of the Daimler Company is 70.60% made up of institutional investors. There are also 19.50% of other investors including individual shareholders, 9.7% of Tenaciou3 Prospect Investment shares, 6.80% of Kuwait Investment Authority shares, 5.12% of BlackRock shares, 4.93% of Harris Associates shares, 3.3% of the Bank of America Corporation shares, and 3.10% of Renault-Nissan shares.
To trade Daimler shares online, we also recommend that you take an interest in the company's economic and financial history over the past few years. By comparing significant events to price fluctuations, you'll be able to understand how the stock reacts to fundamental data.
Over the past 10 years, the Daimler share price has experienced many volatile and contradictory trends, here is a brief summary. First of all, between late 2009 and early 2011, this share followed an upward trend which allowed it to reach € 57. But the trend was followed by a downward correction towards 29 € in November of the same year, the lowest level of this period.
It went back up to 47 € in February 2012 before plunging again and finally setting out in a more pronounced upward movement towards a high of 70 € in June 2014 then 95 € in March 2015, which represents the highest level of this period. A downward trend followed until June 2016 reaching € 53.
Several recovery attempts took place the first around 70 € in January 2017 and another around 75 € in January 2018. However, since then, the share price has been trending downward again.
The advantages and strengths of Daimler shares as a stock market asset :
Firstly, it should be remembered that the Daimler Group has become one of the leaders in its industry thanks in large part to a strategy based on innovation. The group invests a lot of money in research and development, which enables it to stay ahead of its competitors by bringing out innovative and modern products that meet or create new consumer needs.
The Daimler Group is also recognized as a company that knows how to communicate with its customers. Its marketing strategy and advertising communication elements are particularly well thought-out and cover all media. As a result, the Daimler brand is very well known by the general public and enjoys a strong and reassuring image, which enables it to sell its products more easily.
Finally, the Daimler group has substantial equity capital. This is of particular importance to investors interested in it because it means that the group is completely independent in its decisions. It should also be noted that the various strategies pursued by the Daimler group in the past years have borne fruit and have been widely praised by critics.
Disadvantages and weaknesses of the Daimler share as a stock market asset :
One of Daimler's major weaknesses is that the group tends to invest heavily in companies that are independent in terms of the distribution of its products or their production. This of course represents a major risk for the company, which has little control over its production and sales chain and could, in the event of a dispute, lose profitability and efficiency.
Although the Daimler group is particularly well established in various countries of the world, some markets remain unprofitable. This is particularly the case on the Japanese market, on which Daimler is struggling to position itself properly and sustainably despite the fact that most of its competitors have been established there for a long time. This of course represents a significant loss of earnings for the company, since the Japanese market is one of the most interesting in this sector.
Finally, still with regard to the Daimler Group's weak points, it can also be pointed out that the company does not manage to position itself properly in the bus and truck segment. Indeed, this is Daimler's least profitable segment at present, so much so that investors are wondering whether the company should not divest these activities in order to concentrate on the better-controlled segments.