MERCEDES-BENZ GROUP AG (MBG.DE) Stock Fundamental Analysis
FRA:MBG - Deutsche Boerse Ag - DE0007100000 - Common Stock - Currency: EUR
Taking everything into account, MBG scores 5 out of 10 in our fundamental rating. MBG was compared to 29 industry peers in the Automobiles industry. While MBG has a great profitability rating, there are some minor concerns on its financial health. MBG is valued quite cheap, but it does not seem to be growing. Finally MBG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MBG had positive earnings in the past year.
In the past year MBG had a positive cash flow from operations.
In the past 5 years MBG has always been profitable.
In the past 5 years MBG always reported a positive cash flow from operatings.
1.2 Ratios
MBG's Return On Assets of 3.85% is fine compared to the rest of the industry. MBG outperforms 79.31% of its industry peers.
MBG has a better Return On Equity (11.02%) than 68.97% of its industry peers.
With a decent Return On Invested Capital value of 4.80%, MBG is doing good in the industry, outperforming 62.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MBG is in line with the industry average of 7.29%.
| 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
MBG has a Profit Margin of 7.01%. This is amongst the best in the industry. MBG outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of MBG has grown nicely.
MBG has a better Operating Margin (8.59%) than 79.31% of its industry peers.
MBG's Operating Margin has improved in the last couple of years.
The Gross Margin of MBG (19.63%) is comparable to the rest of the industry.
MBG'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MBG is destroying value.
Compared to 1 year ago, MBG has less shares outstanding
MBG has less shares outstanding than it did 5 years ago.
MBG has a worse debt/assets ratio than last year.
2.2 Solvency
MBG has an Altman-Z score of 1.40. This is a bad value and indicates that MBG is not financially healthy and even has some risk of bankruptcy.
MBG has a Altman-Z score (1.40) which is in line with its industry peers.
The Debt to FCF ratio of MBG is 12.44, which is on the high side as it means it would take MBG, 12.44 years of fcf income to pay off all of its debts.
MBG has a Debt to FCF ratio of 12.44. This is in the better half of the industry: MBG outperforms 75.86% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that MBG is somewhat dependend on debt financing.
MBG has a Debt to Equity ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 12.44 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.73
WACC6.57%
2.3 Liquidity
MBG has a Current Ratio of 1.36. This is a normal value and indicates that MBG is financially healthy and should not expect problems in meeting its short term obligations.
MBG's Current ratio of 1.36 is fine compared to the rest of the industry. MBG outperforms 68.97% of its industry peers.
A Quick Ratio of 1.01 indicates that MBG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.01, MBG is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
MBG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.21%.
Measured over the past years, MBG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.17% on average per year.
The Revenue has decreased by -4.46% in the past year.
Measured over the past years, MBG 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
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.05% on average over the next years.
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
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
With a Price/Earnings ratio of 5.87, the valuation of MBG can be described as very cheap.
Based on the Price/Earnings ratio, MBG is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
MBG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
With a Price/Forward Earnings ratio of 5.72, the valuation of MBG can be described as very cheap.
MBG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MBG is cheaper than 68.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MBG to the average of the S&P500 Index (20.77), we can say MBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MBG is on the same level as its industry peers.
MBG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MBG is cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.57 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
MBG 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
MBG has a Yearly Dividend Yield of 7.99%, which is a nice return.
Compared to an average industry Dividend Yield of 6.21, MBG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, MBG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.99% |
5.2 History
The dividend of MBG is nicely growing with an annual growth rate of 11.89%!
Dividend Growth(5Y)11.89%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
53.75% of the earnings are spent on dividend by MBG. This is a bit on the high side, but may be sustainable.
MBG'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%
FRA:MBG (4/30/2025, 7:00:00 PM)
52.47
-1.47 (-2.73%)
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 Cap50.52B
Analysts66.67
Price Target64.97 (23.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.99% |
Yearly Dividend5.7
Dividend Growth(5Y)11.89%
DP53.75%
Div Incr Years1
Div Non Decr Years2
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)-2.44%
PT rev (3m)-2.28%
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)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 5.72 | ||
| P/S | 0.35 | ||
| P/FCF | 5.57 | ||
| P/OCF | 2.85 | ||
| P/B | 0.55 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)8.94
EY17.04%
EPS(NY)9.18
Fwd EY17.5%
FCF(TTM)9.42
FCFY17.95%
OCF(TTM)18.42
OCFY35.1%
SpS151.2
BVpS96.19
TBVpS76.01
PEG (NY)N/A
PEG (5Y)0.64
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
WACC6.57%
ROIC/WACC0.73
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%