MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
BIT:1MBG - Euronext Milan - DE0007100000 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1MBG. 1MBG was compared to 29 industry peers in the Automobiles industry. While 1MBG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MBG is valued quite cheap, but it does not seem to be growing. Finally 1MBG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1MBG had positive earnings in the past year.
In the past year 1MBG had a positive cash flow from operations.
Each year in the past 5 years 1MBG has been profitable.
In the past 5 years 1MBG always reported a positive cash flow from operatings.
1.2 Ratios
1MBG has a Return On Assets of 3.85%. This is in the better half of the industry: 1MBG outperforms 75.86% of its industry peers.
1MBG's Return On Equity of 11.02% is fine compared to the rest of the industry. 1MBG outperforms 68.97% of its industry peers.
1MBG has a Return On Invested Capital (4.80%) which is comparable to the rest of the industry.
1MBG had an Average Return On Invested Capital over the past 3 years of 6.43%. This is in line with the industry average of 7.57%.
| 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 Profit Margin of 7.01%. This is amongst the best in the industry. 1MBG outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of 1MBG has grown nicely.
1MBG has a better Operating Margin (8.59%) than 79.31% of its industry peers.
1MBG's Operating Margin has improved in the last couple of years.
1MBG has a Gross Margin of 19.63%. This is comparable to the rest of the industry: 1MBG outperforms 58.62% of its industry peers.
In the last couple of years the Gross Margin of 1MBG has remained more or less at the same level.
| 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.
The number of shares outstanding for 1MBG has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MBG has less shares outstanding
The debt/assets ratio for 1MBG is higher compared to a year ago.
2.2 Solvency
1MBG has an Altman-Z score of 1.41. This is a bad value and indicates that 1MBG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.41, 1MBG perfoms like the industry average, outperforming 51.72% of the companies in the same 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.
The Debt to FCF ratio of 1MBG (12.44) is better than 75.86% of its industry peers.
1MBG has a Debt/Equity ratio of 0.79. This is a neutral value indicating 1MBG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, 1MBG is in line with its industry, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 12.44 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.72
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.36 indicates that 1MBG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, 1MBG is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.01, 1MBG is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for 1MBG have decreased strongly by -29.21% in the last year.
The Earnings Per Share has been growing by 9.17% on average over the past years. This is quite good.
1MBG shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
Measured over the past years, 1MBG shows a decrease in Revenue. The Revenue has been decreasing by -3.36% on average per year.
EPS 1Y (TTM)-29.21%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-43.69%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.36%
Sales Q2Q%-14.26%
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.
1MBG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.05% yearly.
EPS Next Y-20.05%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
EPS Next 5Y9.12%
Revenue Next Year-2.88%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.08%
Revenue Next 5Y0.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 6.05, the valuation of 1MBG can be described as very cheap.
79.31% of the companies in the same industry are more expensive than 1MBG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MBG to the average of the S&P500 Index (24.29), we can say 1MBG is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.89, the valuation of 1MBG can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1MBG is valued a bit cheaper than 68.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 1MBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.89 |
4.2 Price Multiples
1MBG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1MBG is valued cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.74 | ||
| EV/EBITDA | 6.76 |
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)0.66
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.20%, 1MBG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.37, 1MBG pays a bit more dividend than its industry peers.
1MBG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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 53.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
1MBG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.75%
EPS Next 2Y-5.08%
EPS Next 3Y1.65%
BIT:1MBG (5/6/2025, 7:00:00 PM)
54.08
+0.21 (+0.39%)
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 Cap52.07B
Analysts66
Price Target65.09 (20.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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)-2.56%
PT rev (3m)-2.17%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)-5.98%
EPS NY rev (3m)-18.31%
Revenue NQ rev (1m)4.03%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 5.89 | ||
| P/S | 0.36 | ||
| P/FCF | 5.74 | ||
| P/OCF | 2.94 | ||
| P/B | 0.56 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)8.94
EY16.53%
EPS(NY)9.18
Fwd EY16.98%
FCF(TTM)9.42
FCFY17.42%
OCF(TTM)18.42
OCFY34.06%
SpS151.2
BVpS96.19
TBVpS76.01
PEG (NY)N/A
PEG (5Y)0.66
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 | 1.41 |
F-Score5
WACC6.63%
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)-29.21%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-43.69%
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%-14.26%
Revenue Next Year-2.88%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.08%
Revenue Next 5Y0.05%
EBIT growth 1Y-27.99%
EBIT growth 3Y-7.05%
EBIT growth 5Y4.07%
EBIT Next Year47.15%
EBIT Next 3Y18.26%
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%