The Mercedes Case: Real Dividends, Overpriced Risks

  • Mercedes-Benz is a BUY: deeply undervalued with a P/E of 6.4x, strong cash flow, and a 7%+ dividend yield, despite market fears. Tariff and China concerns are overstated; Mercedes' US production and flexible cost structure mitigate risks, while capital discipline remains strong. Q1 2025 results show resilient free cash flow and rising net liquidity, even as profits declined, highlighting robust fundamentals and balance sheet.