MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
BIT:1MBG - Euronext Milan - DE0007100000 - Common Stock - Currency: EUR
Overall 1MBG gets a fundamental rating of 5 out of 10. We evaluated 1MBG against 32 industry peers in the Automobiles industry. 1MBG has an excellent profitability rating, but there are some minor concerns on its financial health. 1MBG has a bad growth rate and is valued cheaply. Finally 1MBG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1MBG was profitable.
In the past year 1MBG had a positive cash flow from operations.
1MBG had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MBG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1MBG (3.85%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.02%, 1MBG is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
1MBG has a better Return On Invested Capital (4.80%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MBG is in line with the industry average of 7.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 11.02% | ||
| ROIC | 4.8% |
ROA(3y)4.95%
ROA(5y)4.99%
ROE(3y)14.51%
ROE(5y)16.3%
ROIC(3y)6.43%
ROIC(5y)5.71%
1.3 Margins
1MBG has a better Profit Margin (7.01%) than 81.25% of its industry peers.
In the last couple of years the Profit Margin of 1MBG has grown nicely.
Looking at the Operating Margin, with a value of 8.59%, 1MBG is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
1MBG's Operating Margin has improved in the last couple of years.
1MBG has a Gross Margin (19.63%) which is comparable to the rest of the industry.
1MBG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 7.01% | ||
| GM | 19.63% |
OM growth 3Y-9.61%
OM growth 5Y7.69%
PM growth 3Y-25.83%
PM growth 5Y38.49%
GM growth 3Y-5.7%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
1MBG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1MBG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MBG has less shares outstanding
Compared to 1 year ago, 1MBG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that 1MBG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1MBG (1.40) is comparable to the rest of the industry.
1MBG has a debt to FCF ratio of 12.44. This is a negative value and a sign of low solvency as 1MBG would need 12.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 12.44, 1MBG is doing good in the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that 1MBG is somewhat dependend on debt financing.
1MBG's Debt to Equity ratio of 0.79 is in line compared to the rest of the industry. 1MBG outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 12.44 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.72
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.36 indicates that 1MBG should not have too much problems paying its short term obligations.
1MBG has a Current ratio of 1.36. This is in the better half of the industry: 1MBG outperforms 65.63% of its industry peers.
1MBG has a Quick Ratio of 1.01. This is a normal value and indicates that 1MBG is financially healthy and should not expect problems in meeting its short term obligations.
1MBG has a better Quick ratio (1.01) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
1MBG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.19%.
1MBG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.17% yearly.
1MBG shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
1MBG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.36% yearly.
EPS 1Y (TTM)-28.19%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-39.16%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.36%
Sales Q2Q%-7.38%
3.2 Future
1MBG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.12% yearly.
Based on estimates for the next years, 1MBG will show a small growth in Revenue. The Revenue will grow by 0.05% on average per year.
EPS Next Y-20.05%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
EPS Next 5Y9.12%
Revenue Next Year-3.56%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.68, the valuation of 1MBG can be described as very cheap.
87.50% of the companies in the same industry are more expensive than 1MBG, based on the Price/Earnings ratio.
1MBG is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of 1MBG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MBG indicates a somewhat cheap valuation: 1MBG is cheaper than 71.88% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1MBG to the average of the S&P500 Index (22.15), we can say 1MBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MBG is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MBG indicates a rather cheap valuation: 1MBG is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.47 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
The decent profitability rating of 1MBG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.08%, 1MBG is a good candidate for dividend investing.
1MBG's Dividend Yield is rather good when compared to the industry average which is at 5.90. 1MBG pays more dividend than 90.63% of the companies in the same industry.
1MBG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
5.2 History
On average, the dividend of 1MBG grows each year by 11.89%, which is quite nice.
Dividend Growth(5Y)11.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MBG pays out 53.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1MBG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.75%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
BIT:1MBG (5/27/2025, 7:00:00 PM)
51.5
-1.5 (-2.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners33.57%
Inst Owner ChangeN/A
Ins Owners10.76%
Ins Owner ChangeN/A
Market Cap49.59B
Analysts66
Price Target62.52 (21.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend5.7
Dividend Growth(5Y)11.89%
DP53.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.96%
Min EPS beat(2)-6.3%
Max EPS beat(2)8.22%
EPS beat(4)3
Avg EPS beat(4)3.14%
Min EPS beat(4)-6.3%
Max EPS beat(4)8.22%
EPS beat(8)6
Avg EPS beat(8)5.36%
EPS beat(12)9
Avg EPS beat(12)6.2%
EPS beat(16)12
Avg EPS beat(16)7.83%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.41%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-1.4%
Revenue beat(8)2
Avg Revenue beat(8)-2.07%
Revenue beat(12)5
Avg Revenue beat(12)-0.34%
Revenue beat(16)5
Avg Revenue beat(16)-5.04%
PT rev (1m)-7.35%
PT rev (3m)-6.07%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.2%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 5.61 | ||
| P/S | 0.34 | ||
| P/FCF | 5.47 | ||
| P/OCF | 2.8 | ||
| P/B | 0.54 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)9.07
EY17.61%
EPS(NY)9.18
Fwd EY17.83%
FCF(TTM)9.42
FCFY18.29%
OCF(TTM)18.42
OCFY35.76%
SpS151.2
BVpS96.19
TBVpS76.01
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 11.02% | ||
| ROCE | 6.57% | ||
| ROIC | 4.8% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 6.23% | ||
| OM | 8.59% | ||
| PM (TTM) | 7.01% | ||
| GM | 19.63% | ||
| FCFM | 6.23% |
ROA(3y)4.95%
ROA(5y)4.99%
ROE(3y)14.51%
ROE(5y)16.3%
ROIC(3y)6.43%
ROIC(5y)5.71%
ROICexc(3y)7.38%
ROICexc(5y)6.66%
ROICexgc(3y)8.3%
ROICexgc(5y)7.47%
ROCE(3y)8.81%
ROCE(5y)7.83%
ROICexcg growth 3Y-11.79%
ROICexcg growth 5Y5.18%
ROICexc growth 3Y-12.12%
ROICexc growth 5Y4.64%
OM growth 3Y-9.61%
OM growth 5Y7.69%
PM growth 3Y-25.83%
PM growth 5Y38.49%
GM growth 3Y-5.7%
GM growth 5Y-1.14%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 12.44 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 127.95% | ||
| Cap/Sales | 5.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.02% | ||
| Profit Quality | 88.86% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.4 |
F-Score5
WACC6.68%
ROIC/WACC0.72
Cap/Depr(3y)119%
Cap/Depr(5y)111.49%
Cap/Sales(3y)5.31%
Cap/Sales(5y)5.69%
Profit Quality(3y)67.22%
Profit Quality(5y)131.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.19%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-39.16%
EPS Next Y-20.05%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
EPS Next 5Y9.12%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.36%
Sales Q2Q%-7.38%
Revenue Next Year-3.56%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.05%
EBIT growth 1Y-27.99%
EBIT growth 3Y-7.05%
EBIT growth 5Y4.07%
EBIT Next Year26.13%
EBIT Next 3Y14.2%
EBIT Next 5Y11.03%
FCF growth 1Y44.96%
FCF growth 3Y-19.16%
FCF growth 5YN/A
OCF growth 1Y22.56%
OCF growth 3Y-10.2%
OCF growth 5Y17.59%