DAI Investment Analysis Report & Stock Research, Daimler AG

Daimler AG (DAI)

DAI Stock Report

2-Year Price History

View Larger DAI Chart
NYSE:DAI
$46.66
(2/9 3:25PM)
+4.1%
Open$46.13 Mkt Cap$41.6 Billion
High$46.73 52Wk High$56.57
Low$45.24 52Wk Low$21.53
Volume463,951 Avg Vol 10D551,000

Ockham's Rating/Recommendation Summary

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DAI Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, DAI the high and low end of the Price to Sales per share ratios are 0.49x and 0.24x respectively.

Notice that DAI's current Price to Sales per share ratio is 0.41x, which is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about DAI we would need to see a drop in the Price to Sales ratio of 11% given current sales per share levels in order to return to its historical weighted average.

DAI Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of DAI, it appears that either the current estimate for Cash Earnings is negative or DAI is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis DAI receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

DAI Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for DAI, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. DAI’s estimated annual dividend is $0.79 resulting in a current dividend yield of 1.76%. The highest dividend yield from DAI over recent history was 14.77% while the lowest dividend yield was 0.00%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as DAI that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 76.17% below the median yield.

Peer Comparison

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Daimler AG Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including DAI) 12.19 2.75 » 19.17 0.73 0.17 » 0.81 5.27% 13.07%
*10 year range does not include current year values
Honda Motor Company, Limited HMC $62.0 Billion $33.81 10.58 1.56 » 11.42 0.76 0.12 » 0.80 5.32% 11.82%
Daimler AG DAI $41.6 Billion $44.83 -1.00 1.54 » 9.60 0.41 0.13 » 0.78 -4.85% 8.00%
Ford Motor Company F $35.5 Billion $10.97 4.36 0.60 » 4.60 0.32 0.02 » 0.37 -2.28% 8.66%
Johnson Controls, Inc. JCI $18.6 Billion $27.72 13.89 4.11 » 46.46 0.64 0.20 » 0.74 1.42% 10.71%
Paccar, Inc. PCAR $12.3 Billion $33.97 14.92 4.78 » 17.58 1.54 0.42 » 1.59 12.81% 26.44%
Magna International, Inc. Class A Sub.Vtg MGA $6.3 Billion $56.01 17.18 2.70 » 15.79 0.38 0.08 » 0.53 9.09% 7.70%
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4:02P, Feb. 03,2010 DAI $47.91 Daimler AG
Zero Hedge

Daimler AG News is Being Covered Right Now on Zero Hedge

News has broken via the television and viral blogs regarding DAI, so investors should take an interest in learning what was said.

While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; DAI has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.

“… Of these, Morgan Stanley has an Underweight rating on Acerinox, Bayer, Brisa, Commerzbank,DAIMLER, Enterprise Inns, Kemira, Lonmin, Michelin, Prudential, Renault, Renewable ... …”

5:27P, Jan. 11,2010 DAI $53.98 Daimler AG
Fast Money

Emerging Markets and DAI Covered on Fast Money

News related to emerging markets affecting Daimler AG today, and Fast Money discussed some recent developments.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; DAI has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… If you look at toyota against the other majors like DAIMLER, dri, toyota is the best combination of valuation, best-run company and a company to me earnings should go to places ... …”

9:33A, Dec. 23,2009 DAI $53.50 Daimler AG
The Opening Bell on Fox Business

DAI News Mentioned on The Opening Bell on Fox Business Recently

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on DAI from The Opening Bell on Fox Business.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DAI has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like DAI and believes that it will Underperform. At Ockham, we are not advising buying Daimler AG at the current price level because according to our methodology it is not supported by the fundamentals.

“… DAIMLER will buy products from ballard and finish line swinging nice gains up 81/2% right now. Alexis: thanks very much, shibani, good job on the rim news, I was trying to ... …”

9:03A, Dec. 08,2009 DAI $51.96 Daimler AG
The Opening Bell on Fox Business

See More News on DAI from The Opening Bell on Fox Business

The latest news on The Opening Bell on Fox Business in regards to DAI came through on RazorWire recently.

We noticed recently that in comparison to all other stocks we analyze in the news; DAI has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… DAIMLER put into reverse, as analysts at barclays downgrading that car make tower underweight, citing expectations that the market has run ahead of itself. …”

9:08A, Dec. 07,2009 DAI $53.92 Daimler AG
Squawk On The Street

Squawk On The Street Has News on DAI

The latest news from Squawk On The Street on DAI is available through Ockham's news analytics platform RazorWire.

As of this week's report, we have an Overvalued valuation on DAI because the price has gotten too high to be justified by the fundamentals. In comparison to the other stocks that we follow, Daimler AG has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Daimler AG underperforming.

“… DAIMLER chrysler 1. 5% higher on the back of a very optimistic outlook for the mercedes-benz unit during october. They had an optimistic october and it continued into november. …”

2:17P, Nov. 20,2009 DAI $52.06 Daimler AG
Fox Business

Daimler AG Was Talked About by Fox Business

The latest news on Fox Business in regards to DAI came through on RazorWire recently.

In comparison to the other stocks that we follow, Daimler AG has seen more discussion in relation to its normal ranking among the group. So, be aware that the news sources we track are focusing on this stock more recently. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Daimler AG underperforming. As of this week's report, we have an Overvalued valuation on DAI because the price has gotten too high to be justified by the fundamentals.

“… They have come out with a cheaper version, $50,000 grand, but they struck a deal with DAIMLER and business must be good enough the electric car company which they go from 0 to 100... …”

12:32P, Nov. 17,2009 DAI $52.93 Daimler AG
Power Lunch

Stay Current on DAI's News on Power Lunch

Daimler AG is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.

As of this week's report, we have an Overvalued valuation on DAI because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Daimler AG has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Daimler AG underperforming.

“… That's what DAIMLER is planning with this new venture called cars to go. Phil? > > and bill, we're joined by the president and ceo of car to go. …”

12:28P, Nov. 17,2009 DAI $52.89 Daimler AG
Power Lunch

DAI News Mentioned on Power Lunch Recently

News has broken via the television and viral blogs regarding DAI, so investors should take an interest in learning what was said.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; DAI has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… ving room. >> that's not the idea. …”

12:14P, Nov. 17,2009 DAI $52.84 Daimler AG
Power Lunch

Power Lunch: What is Happening with Daimler AG Now?

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on DAI from Power Lunch.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Daimler AG underperforming. As of this week's report, we have an Overvalued valuation on DAI because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Daimler AG has actually sunk a bit in comparison to the others.

“… Plus, if you've heard of movies on demand, what about cars on that's what DAIMLER is betting on. > > > and then you know what happens a half an hour from now. …”

7:20A, Nov. 17,2009 DAI $53.57 Daimler AG
Squawk Box

DAI News Mentioned on Squawk Box Recently

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Daimler AG.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DAI has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Daimler AG at the current price level because according to our methodology it is not supported by the fundamentals. The crowd at The Motley Fool does not like DAI and believes that it will Underperform.

“… Two, it's a chance for them to do test marketing in different that's why what DAIMLER is doing today will likely be replicated by other automakers in the future as well. …”

View All Daimler AG Stock News

Key Fundamentals

DAI - Daimler AG Fundamentals
Price (2/9 3:25PM) $46.66
Volume (2/9 3:25PM) 463,951
Last Close Price $44.83
10 Day Average Volume 551,000
13 Week Price Range $43.66 - $54.63
52 Week Price Range $21.53 - $56.57
LTM Revenue $102.7 Billion
 
Shares Outstanding (12/2008) 927.4 Million
Market Capitalization $41.6 Billion
Shares Held By Institutions 363.5 Million
Institutional Holders 674
% Shares Held By Institutions 34.30%
Earnings Per Share (EPS) $1.95
P/E Ratio n/a
Book Value Per Share $32.82
 
Gross Margin 21.50%
Annual Dividend 0.79
Dividend Yield 1.80%
Beta 2.07
Fiscal Year Ends December

About Daimler AG

Daimler AG is considered to operate in the Consumer Goods sector. They specifically operate in the Automotive Manufacturers/Major business segment contained within the Automotive industry.

The Company develops, manufactures, distributes and sells a range of automotive products, mainly passenger cars, trucks, vans and buses.