Financial Statement Analysis | Daimler AG

Running head: FINANCIAL STATEMENT ANALYSIS
Financial Statement Analysis
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL STATEMENT ANALYSIS1
Table of Contents
Analyst Tear-Sheet..........................................................................................................................3
Company Profile..............................................................................................................................4
Segment Analysis........................................................................................................................4
Macro-Economic Analysis..............................................................................................................5
Industry Analysis.............................................................................................................................6
Competitor Analysis........................................................................................................................7
Porter’s Five Force......................................................................................................................7
Business Model and Corporate Strategy..........................................................................................8
Corporate Strategy.......................................................................................................................9
Ratio Analysis................................................................................................................................10
Valuation and Analysis..............................................................................................................12
Dividend Discount Model..........................................................................................................12
Free Cash Flow Analysis...........................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................17
1) Detailed Ratio Analysis.........................................................................................................17
2) CAPM Data...........................................................................................................................18
3) Balance Sheet........................................................................................................................19
4) Income Statement..................................................................................................................20
5) Free Cash Flow Model..........................................................................................................21
6) WACC...................................................................................................................................22

FINANCIAL STATEMENT ANALYSIS2
Analyst Tear-Sheet
Company Name: Daimler AG
Exchange: DAX Index
Industry: Automobile Industry
Market Cap: 27.92 Billion
Market Currency: Euro
Current Stock Price: €25.52
Analyst Recommendation:
DDM Valuation: €92.26
DCF Valuation: € 35.76
Current Share Price: €25.52
Recommendation: “BUY”
Time Frame: Long Term
(BULLISH)
Market Cap 27.9
2B
P/E Ratio 11.4
9
Dividend
Yield
3.53
%
52-Week
High
60.0
0
52-Week Low 21.0
6
Valuation Ratio
Particulars 2017-
12
2018-
12
2019-
12
Indust
ry
Dividends EUR 3.25 3.65 3.25
Pay-out Ratio 37% 43% 86% 25%
Share Price 70.8 47.07 49.84
Dividend Yield 4.59% 7.75% 6.52% 2.00%
Book Value Per
Share
68.7 68.67 64.25
6/1/2015
11/1/2015
4/1/2016
9/1/2016
2/1/2017
7/1/2017
12/1/2017
5/1/2018
10/1/2018
3/1/2019
8/1/2019
1/1/2020
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
Daimler and Market Return
Daimler DAX Index

FINANCIAL STATEMENT ANALYSIS3
Company Profile
Daimler AG is an Automobile Engineering Company whereby the company is well
engaged in the development, production and distribution of the cars, vans and trucks in Germany
and the management in the Daimler Group. The company was well formed following the merger
of Benz and Cie and Diamler Motoren Gesellschaft in the year 1926. The Daimler owns business
groups which well includes Mercedes Benz, Mercedes AMZ, Mercedes-May Bach, Smart and
Heavy Truck Companies that well includes Freightliner and Western Star. The operations of the
company is primarily engaged in production, development and distribution of the cars, trucks
and vans in Germany and the management of Daimler Group (Daimler 2020). The production
facilities of the company is well expanded in almost 20 countries and over 8,500 sales centers
that is spread all across the world. The company is listed in the stock exchange with its stock
symbol as “DAI”. The current share price of the company is around 26.28Euro.
Segment Analysis
The key segments are as Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans,
Daimler Busses and Daimler Financial Services.
 Mercedes-Benz Cars: The Mercedes Benz Car Segments well includes the vehicles that
are a part of the Mercedes-Benz Brand, which also well-known brands such as Mercedes-
May-Bach and Mercedes-AMG (Editorial 2020).
 Daimler Trucks: The Daimler Truck segment well includes segments that is engaged
into development and production of vehicles under the brand name of Mercedes-Benz,
Freightliner, Western Star, FUSO and Bharat-Benz.
 Mercedes-Benz Vans: The business segment is a key supplier for a range of vans and
associated services. The vans of this segment are in particular sold under this brand name,
which also includes Freightliner and Mercedes-Benz.
 Daimler Buses: The Daimler Buses well segments and sells completely built up houses
that are under this brand name which also includes other key brands such as Setra and
Mercedes-Benz (Daimler 2020).
 Daimler Financial Services: The financial services segment of the company well helps
and support the company automobile services and various brands that are operating in

FINANCIAL STATEMENT ANALYSIS4
approximately 40 countries operating globally. The primary product portfolio of the
segment includes leasing and financing for end customers, dealers, and others.
Macro-Economic Analysis
Supply and demand of the automotive industry are well affected as the profitability
aspects are well affected by the macro-economic policies followed. The history of the
automotive industry well demonstrate that that the trend it has followed is highly affected due to
changing business cycles and key economic factors like GDP Growth rate, Inflation rate and
monetary and fiscal policies followed are some of the key macro-economic factors that would be
impacting the business operations of the company. On the other hand falling interest rate
globally and slowdown in business production activities like Brexit, Trade War and then the
Outbreak of COVID-19 were some of the crucial aspects which is outweighing other factors as
factories and business operations of Daimler gets affected heavily due to the current business
scenario. A graphical image is been presented below which well shows the impact of

FINANCIAL STATEMENT ANALYSIS5
Coronavirus and how will the same be affecting the GDP Growth Rate globally where the
operations of the company is situated.
Industry Analysis
The global demand for cars has particularly remained at a very high level in the year
under review, but actually decreased slightly by about 1% when compared with previous year.
The traditional sales method that is operating in the Western Europe Market and United States
are now fully recovering from the considerable amount of fall or loss in the volume as a result of
financial crisis and Brexit in the European Union Nation. Further the outbreak of Pandemic
Disease COVID-19 which has brought a slowdown in the global economy and would be
affecting the consumer expenditure pattern. The slowdown has primarily been observed in major
parts of Europe, Asia and North America where the outbreak is severe. It becomes important for
the management of the company to undertake a detailed strategic analysis for the upcoming
threats and events which can disrupt the business operations. However this will be well affecting
not only one player in the industry or a single company, but Daimler represents a group a
premium vehicles that are offered to its customer, with the ongoing lockdown and a decrease in