DAIMLER

Analysis of Daimler share price

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One of the most flourishing industries in Germany is without a doubt car manufacturing. The shares of groups in this sector listed on the DAX 30 are therefore assets that many traders choose to invest in for both the short and longer term. One of the stocks in this sector is that of the Daimler Group. A priority share to monitor is that of the Daimler group. You'll learn more about the activities of the group here and get a grasp of some practical information to successfully analyse its exchange rate.  

Latest news

DAIMLER: Earnings dropped 78% in the first quarter

27/04/2020 - 11h34

In the first quarter of fiscal year 2020, the German automotive group Daimler saw a decline in its Ebit. This is at least what it stated in its publication on Wednesday while specifying certain figures for 2020.

Elements that can influence the price of this asset:

Analysis N°1

The group's significant investments in the field of hybrid vehicles is an attractive opportunity since Daimler could take advantage of a position among the leaders of this juicy market in the years to come. The same goes for electric vehicles and autonomous vehicles which are also preferred targets of this business.

Analysis N°2

Despite its current weak positioning in Asia and more particularly in Japan, the Daimler group is gaining significant market shares in India which is a market of the future.

Analysis N°3

Brexit is likely to continue to impact sales of Daimler vehicles in the UK as well.

Analysis N°4

The fierce competition between different car manufacturers

Analysis N°5

Finally, like most other car manufacturers, Daimler is expected to suffer the negative effects of the current fuel price high on its car sales.

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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 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.

 

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:

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.

 

Economic history

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.

Frequently Asked Questions

Does the Daimler Group have any subsidiaries and which ones?

The Daimler Group conducts its business through various brands and subsidiaries which it owns and operates. These subsidiaries include Mercedez-Benz, Mercedes-Benz Trucks, Smart, Mitsubishi Fuso Truck and Bus Corportation (89.29% owned), Maybach, EyoBus with Mercedes Benz Bus, Setra and Motor Coach Industries. The group also owns Detroit Diesel Corporation, BharatBenz, Freightliner LLC with Western Star, Sterling Trucks and Thomas Buses, Car2Go and Mercedes AMG High Performance Powertrains.

How are the various Daimler shareholders distributed?

The capital of the Daimler Group is distributed among different types of shareholders, as follows. Firstly, 72.20% of the capital is held by institutional investors and 17.8% by private investors. 1.55% of the group's capital is held by Renault and 1.5% by Nissan. Of course, this breakdown is likely to change over time depending on the share transactions carried out by the company.

Is Daimler stock included in the DAX 30 stock market index?

Yes, the Daimler Group is currently included in the DAX 30, the German national stock market index. This means that it is one of the 30 German companies with the highest market capitalization. However, the company is also included in the composition of other leading stock market indices, such as the Euro Stoxx 50, the FTSE Eurotop 100 or the Stoxx Europe 50, and is therefore a high-value company.

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.