![]() This shows that the company has enough cash to meet its obligations. The company gained $10 billion in cash from its operations in the first nine months of 2020. The company’s Q3 2020 revenues were 0.8% above the level seen a year ago, and the EPS figure for the quarter was up to $2.26 from $1.75 in the same period from the year before.ĭoes Daimler AG Have A Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?ĭaimler AG’s total debt increased from $1.9 billion in 2017 to $20.6 billion at the end of Q3 2020, while its total cash increased from $9.7 billion to $29.8 billion over the same period. Despite the rise in revenues, the company’s margins fell from 5.6% to 1.4%, resulting in a 72% EPS fall from $8.82 in 2016 to $2.47 in 2019. In comparison, the S&P 500 Index first fell 51% in the wake of the recession before recovering 48% by January 2010.ĭaimler AG’s Revenues rose 13% from $169.6 billion in 2016 to $192 billion in 2019, primarily due to an increase in volume and pricing. It recovered post the 2008 crisis, to levels of about $53 in early 2010, rising by 136% between March 2009 and January 2010. : Initial recovery to levels before accelerated decline (around )ĭaimler AG vs S&P 500 Performance Over 2007-08 Financial CrisisĭDAIF stock declined from levels of around $103 in September 2007 (pre-crisis peak) to levels of around $23 in March 2009 (as the markets bottomed out), implying DDAIF stock lost 78% approximate from its pre-crisis peak.: Approximate bottoming out of S&P 500 index.– : Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08).: Approximate pre-crisis peak in S&P 500 index.In contrast, here’s how DDAIF and the broader market performed during the 2007/2008 crisis. From : S&P 500 recovers 72% from the lows seen on Mar 23, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.Doesn’t help that oil prices crash in mid-March amid Saudi-led price war : S&P 500 drops 34% from the peak level seen on Feb 19, as Covid-19 cases accelerate outside China.: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high.: WHO declares a global health emergency.: Coronavirus cases first reported in China.Despite the rally in DDAIF stock since late March, we believe that the stock has room for more growth as the fear around the pandemic subsides, with the progress with vaccines across countries. The stock price rose as lockdowns lifted across regions creating positivity for the sector. DDAIF stock has gained 32% from the pre-Covid price of $54 seen in January 2020, after the Fed’s multi-billion dollar stimulus package announcement on March 23rd, which lifted market sentiments. It has recovered beyond its pre-Covid level. We believe that Daimler’s stock (OTCMKTS: DDAIF) still has a 10% upside once the fear around the pandemic subsides. Daimler AG’s Stock Has A 10% Upside Potential
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