MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
BIT:1MBG - Euronext Milan - DE0007100000 - Common Stock - Currency: EUR
1MBG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Automobiles industry. While 1MBG has a great profitability rating, there are some minor concerns on its financial health. 1MBG has a bad growth rate and is valued cheaply. 1MBG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1MBG was profitable.
1MBG had a positive operating cash flow in the past year.
In the past 5 years 1MBG has always been profitable.
Each year in the past 5 years 1MBG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1MBG (3.41%) is better than 81.82% of its industry peers.
1MBG has a Return On Equity of 9.45%. This is in the better half of the industry: 1MBG outperforms 69.70% of its industry peers.
1MBG has a Return On Invested Capital of 4.36%. This is in the better half of the industry: 1MBG outperforms 66.67% 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 6.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 9.45% | ||
| ROIC | 4.36% |
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
Looking at the Profit Margin, with a value of 6.23%, 1MBG is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
1MBG's Profit Margin has improved in the last couple of years.
The Operating Margin of 1MBG (7.79%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of 1MBG has grown nicely.
Looking at the Gross Margin, with a value of 19.61%, 1MBG is in line with its industry, outperforming 57.58% of the companies in the same industry.
1MBG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.79% | ||
| PM (TTM) | 6.23% | ||
| GM | 19.61% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1MBG is destroying value.
The number of shares outstanding for 1MBG has been reduced compared to 1 year ago.
The number of shares outstanding for 1MBG has been reduced compared to 5 years ago.
1MBG has a worse debt/assets ratio than last year.
2.2 Solvency
1MBG has an Altman-Z score of 1.39. This is a bad value and indicates that 1MBG is not financially healthy and even has some risk of bankruptcy.
1MBG has a Altman-Z score (1.39) which is in line with its industry peers.
The Debt to FCF ratio of 1MBG is 10.17, which is on the high side as it means it would take 1MBG, 10.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MBG (10.17) is better than 72.73% of its industry peers.
1MBG has a Debt/Equity ratio of 0.73. This is a neutral value indicating 1MBG is somewhat dependend on debt financing.
1MBG's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. 1MBG outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 10.17 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.67
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1MBG should not have too much problems paying its short term obligations.
1MBG's Current ratio of 1.34 is fine compared to the rest of the industry. 1MBG outperforms 69.70% of its industry peers.
1MBG has a Quick Ratio of 1.34. This is a bad value and indicates that 1MBG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, 1MBG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for 1MBG have decreased strongly by -28.19% in the last year.
Measured over the past years, 1MBG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.17% on average per year.
Looking at the last year, 1MBG shows a decrease in Revenue. The Revenue has decreased by -5.69% in the last year.
The Revenue has been decreasing by -3.36% on average over the past years.
EPS 1Y (TTM)-28.19%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-39.16%
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.36%
Sales Q2Q%-7.38%
3.2 Future
Based on estimates for the next years, 1MBG will show a small growth in Earnings Per Share. The EPS will grow by 4.76% on average per year.
Based on estimates for the next years, 1MBG will show a decrease in Revenue. The Revenue will decrease by -0.04% on average per year.
EPS Next Y-20.05%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
EPS Next 5Y4.76%
Revenue Next Year-3.56%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.13%
Revenue Next 5Y-0.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 5.84, which indicates a rather cheap valuation of 1MBG.
Compared to the rest of the industry, the Price/Earnings ratio of 1MBG indicates a rather cheap valuation: 1MBG is cheaper than 84.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1MBG to the average of the S&P500 Index (27.30), we can say 1MBG is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.77, the valuation of 1MBG can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1MBG is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1MBG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.77 |
4.2 Price Multiples
1MBG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MBG indicates a rather cheap valuation: 1MBG is cheaper than 84.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
1MBG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
1MBG has a Yearly Dividend Yield of 8.10%, which is a nice return.
Compared to an average industry Dividend Yield of 5.20, 1MBG pays a better dividend. On top of this 1MBG pays more dividend than 96.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, 1MBG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.1% |
5.2 History
The dividend of 1MBG is nicely growing with an annual growth rate of 11.89%!
Dividend Growth(5Y)11.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MBG pays out 61.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MBG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.56%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
BIT:1MBG (7/11/2025, 7:00:00 PM)
52.97
+3.05 (+6.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners27.7%
Inst Owner ChangeN/A
Ins Owners9.69%
Ins Owner ChangeN/A
Market Cap51.00B
Analysts66.45
Price Target61.72 (16.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.1% |
Yearly Dividend5.7
Dividend Growth(5Y)11.89%
DP61.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.27%
Min EPS beat(2)-26.77%
Max EPS beat(2)8.22%
EPS beat(4)2
Avg EPS beat(4)-5.35%
Min EPS beat(4)-26.77%
Max EPS beat(4)8.22%
EPS beat(8)5
Avg EPS beat(8)0.18%
EPS beat(12)8
Avg EPS beat(12)3.7%
EPS beat(16)11
Avg EPS beat(16)2.56%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-5.11%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-4.34%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-2.66%
Revenue beat(8)1
Avg Revenue beat(8)-2.79%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)5
Avg Revenue beat(16)-4.2%
PT rev (1m)-1.28%
PT rev (3m)-7.61%
EPS NQ rev (1m)-15.45%
EPS NQ rev (3m)-28.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.98%
Revenue NQ rev (1m)-2.91%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.77 | ||
| P/S | 0.36 | ||
| P/FCF | 4.88 | ||
| P/OCF | 2.66 | ||
| P/B | 0.54 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)9.07
EY17.12%
EPS(NY)9.18
Fwd EY17.33%
FCF(TTM)10.86
FCFY20.5%
OCF(TTM)19.89
OCFY37.55%
SpS148.45
BVpS97.94
TBVpS77.62
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 9.45% | ||
| ROCE | 5.97% | ||
| ROIC | 4.36% | ||
| ROICexc | 5.04% | ||
| ROICexgc | 5.73% | ||
| OM | 7.79% | ||
| PM (TTM) | 6.23% | ||
| GM | 19.61% | ||
| FCFM | 7.31% |
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-Score4
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 10.17 | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 124.59% | ||
| Cap/Sales | 6.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.71% | ||
| Profit Quality | 117.33% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.39 |
F-Score4
WACC6.55%
ROIC/WACC0.67
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 5Y4.76%
Revenue 1Y (TTM)-5.69%
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 5Y-0.04%
EBIT growth 1Y-29.03%
EBIT growth 3Y-7.05%
EBIT growth 5Y4.07%
EBIT Next Year26.13%
EBIT Next 3Y14.2%
EBIT Next 5Y11.03%
FCF growth 1Y-1.27%
FCF growth 3Y-19.16%
FCF growth 5YN/A
OCF growth 1Y7.01%
OCF growth 3Y-10.2%
OCF growth 5Y17.59%