Undervalued in transition - plus dividends? Analysis of Mercedes-Benz, WashTec, and Sixt

Mercedes-Benz – Why the stock could pick up speed again

For long-term investors, Mercedes-Benz offers interesting prospects that go beyond the current challenges. The core of the argument lies in the remarkable resilience of the luxury business. While overall sales declined, highly profitable flagship models such as the G-Class, Mercedes-Maybach, and AMG models grew strongly. This segment proves that focusing on the top price segments works and can deliver stable margins even in turbulent times. At the same time, a change in leadership in design from Gorden Wagener to Bastian Baudy, the former head of design at Mercedes-AMG, is consolidating the strategy and focusing on operational efficiency.

A second driver is the upcoming product offensive, particularly in the electric segment. The new generation of vehicles, such as the electric CLA, is set to score points with its long range and fast charging capabilities. Above all, however, the Company is positioning itself as a serious technology provider through partnerships, for example, in the field of autonomous driving. If these new models are well-received by customers, this could significantly boost the currently sluggish electric vehicle business and strengthen the growth narrative.

Consistent capital repatriation is also appealing to value-oriented shareholders. The ongoing share buyback program, worth billions, is supporting the share price and increasing earnings per share. This is combined with a continued attractive dividend yield of 7.2%, provided the dividend remains stable at EUR 4.30. This policy signals not only financial strength, but also a clear commitment to shareholder remuneration. Overall, the picture that emerges is of a group that is using its profitable core expertise in the luxury sector to finance its transformation and take investors with it. The share is currently trading at EUR 59.37.

WashTec – From hardware dealer to digital service provider

At first glance, the car wash business appears to be saturated. WashTec proves the opposite. Augsburg-based market leader WashTec is making a smart strategic shift away from purely selling machines to becoming a provider of a networked ecosystem. Customers, whether gas station operators or car wash chains, no longer buy individual parts, but solutions for more efficient processes and higher revenue. WashTec is meeting this demand with digital platforms that control and optimize the entire washing process. This shift is opening up new, recurring sources of revenue.

This transformation should be reflected in the figures. Management is aiming for average annual revenue growth of around 5%, driven primarily by digital services and premium offerings such as chemical sealants. However, the real goal is profitability. The operating margin (EBIT) is expected to rise from the current 9-10% to 12-14% by 2027. The current quarterly figures show the way forward. Disproportionately high EBIT growth with rising margins proves that the strategy is bearing fruit. Cost savings through AI-supported processes are expected to fuel this further.

For shareholders, this solid fundamental situation translates into attractive capital returns. The Company maintains a reliable dividend policy, most recently with a distribution of EUR 2.40 per share. At the same time, a share buyback program is underway, with a volume of up to EUR 5 million by May 2026. In the first week of January 2026 alone, the Company repurchased over 4,400 of its own shares. This combined strategy of dividends and buybacks signals management's confidence in its own share price performance and the sustainable cash flow strength of the transformed business model. The share is currently trading at EUR 48.80, representing a dividend yield of around 5%.

Sixt – What speaks for the stock

Despite a challenging macroeconomic environment, Sixt is showing remarkable resilience. The Company continues to grow profitably, driven by high fleet utilization and skillful pricing dynamics. The strong premium segment in particular is proving to be an anchor of stability that is resistant to economic cycles. At the same time, loose monetary policy and government stimulus measures are improving financing conditions and domestic demand. Medium-sized companies such as Sixt often benefit disproportionately from this. The current valuation continues to offer room for maneuver.

Strategic initiatives are providing additional momentum. Digital transformation via the Company's own app is reducing costs and strengthening customer loyalty. In the car-sharing sector, a new, flexible tariff structure is making the service more attractive. Internationally, the focus remains on profitable expansion in the US, while the Company is acting strategically and selectively in Asia. Even in electric mobility, Sixt is pursuing a pragmatic, demand-oriented approach that protects against hasty and cost-intensive changes.

For many investors, the solid dividend policy is another argument in favor of the Company; most recently, EUR 2.70 was distributed. Analysts highlight the attractive dividend yield and the strong consolidated balance sheet. This financial strength allows the Company to reinvest capital for growth while also serving its shareholders. These fundamentals are reflected in analysts' price targets of EUR 100-125, which remain predominantly positive and in some cases significantly above the current price. This confidence is based on the Company's profitable market position and the defensive quality of its business model. With a current share price of EUR 71.15, the dividend yield is 3.8%.

The mobility revolution offers differentiated opportunities beyond the established car manufacturers. Mercedes-Benz is financing electrification with the high margins of its luxury core business and rewarding shareholders with a generous dividend. WashTec is skillfully transforming itself from a machine manufacturer to a profitable provider of digital services and generating recurring revenues. Sixt impresses with robust, profitable growth in premium rentals and a solid balance sheet.