MERCEDES-BENZ GROUP AG (MBG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MBG - DE0007100000 - Common Stock
58.3 EUR
-0.51 (-0.87%)
We assign a fundamental rating of 4 out of 10 to MBG. MBG was compared to 30 industry peers in the Automobiles industry. Both the profitability and the financial health of MBG get a neutral evaluation. Nothing too spectacular is happening here. MBG has a valuation in line with the averages, but it does not seem to be growing. MBG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year MBG was profitable.
- 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
- Looking at the Return On Assets, with a value of 2.44%, MBG is in line with its industry, outperforming 60.00% of the companies in the same industry.
- MBG has a Return On Equity (6.81%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 2.72%, MBG is doing worse than 66.67% of the companies in the same industry.
- MBG had an Average Return On Invested Capital over the past 3 years of 6.43%. This is in line with the industry average of 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.81% | ||
| ROIC | 2.72% |
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
- The Profit Margin of MBG (4.56%) is better than 73.33% of its industry peers.
- MBG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 4.89%, MBG is doing worse than 63.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of MBG has grown nicely.
- MBG has a Gross Margin (17.85%) which is in line with its industry peers.
- MBG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.89% | ||
| PM (TTM) | 4.56% | ||
| GM | 17.85% |
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 just above the Cost of Capital (WACC), so MBG is still creating some value.
- The number of shares outstanding for MBG has been reduced compared to 1 year ago.
- The number of shares outstanding for MBG has been reduced compared to 5 years ago.
- Compared to 1 year ago, MBG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.34, we must say that MBG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.34, MBG is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- MBG has a debt to FCF ratio of 8.55. This is a slightly negative value and a sign of low solvency as MBG would need 8.55 years to pay back of all of its debts.
- MBG's Debt to FCF ratio of 8.55 is fine compared to the rest of the industry. MBG outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 0.70 indicates that MBG is somewhat dependend on debt financing.
- MBG has a Debt to Equity ratio of 0.70. This is in the better half of the industry: MBG outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.43
WACC6.39%
2.3 Liquidity
- MBG has a Current Ratio of 1.27. This is a normal value and indicates that MBG is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.27, MBG is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- MBG has a Quick Ratio of 1.27. This is a bad value and indicates that MBG is not financially healthy enough and could expect problems in meeting its short term obligations.
- MBG has a Quick ratio of 0.93. This is comparable to the rest of the industry: MBG outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- MBG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.93%.
- MBG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.17% yearly.
- Looking at the last year, MBG shows a decrease in Revenue. The Revenue has decreased by -7.08% in the last year.
- The Revenue has been decreasing by -3.36% on average over the past years.
EPS 1Y (TTM)-38.93%
EPS 3Y-4.91%
EPS 5Y9.17%
EPS Q2Q%-32.6%
Revenue 1Y (TTM)-7.08%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.36%
Sales Q2Q%-6.9%
3.2 Future
- The Earnings Per Share is expected to decrease by -0.62% on average over the next years.
- MBG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.91% yearly.
EPS Next Y-47.79%
EPS Next 2Y-17.9%
EPS Next 3Y-6.09%
EPS Next 5Y-0.62%
Revenue Next Year-7.61%
Revenue Next 2Y-3.36%
Revenue Next 3Y-1.2%
Revenue Next 5Y0.91%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.00, which indicates a very decent valuation of MBG.
- 86.67% of the companies in the same industry are more expensive than MBG, based on the Price/Earnings ratio.
- MBG is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.49 indicates a reasonable valuation of MBG.
- The rest of the industry has a similar Price/Forward Earnings ratio as MBG.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. MBG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
- MBG's Enterprise Value to EBITDA ratio is in line with the industry average.
- MBG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MBG is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
- MBG's earnings are expected to decrease with -6.09% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-17.9%
EPS Next 3Y-6.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.25%, MBG is a good candidate for dividend investing.
- MBG's Dividend Yield is rather good when compared to the industry average which is at 3.50. MBG pays more dividend than 93.33% of the companies in the same industry.
- MBG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
5.2 History
- On average, the dividend of MBG grows each year by 11.89%, which is quite nice.
Dividend Growth(5Y)11.89%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- MBG pays out 66.24% of its income as dividend. This is not a sustainable payout ratio.
- MBG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP66.24%
EPS Next 2Y-17.9%
EPS Next 3Y-6.09%
MERCEDES-BENZ GROUP AG / MBG.DE FAQ
Can you provide the ChartMill fundamental rating for MERCEDES-BENZ GROUP AG?
ChartMill assigns a fundamental rating of 4 / 10 to MBG.DE.
What is the valuation status of MERCEDES-BENZ GROUP AG (MBG.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to MERCEDES-BENZ GROUP AG (MBG.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for MERCEDES-BENZ GROUP AG?
MERCEDES-BENZ GROUP AG (MBG.DE) has a profitability rating of 5 / 10.
What are the PE and PB ratios of MERCEDES-BENZ GROUP AG (MBG.DE) stock?
The Price/Earnings (PE) ratio for MERCEDES-BENZ GROUP AG (MBG.DE) is 9 and the Price/Book (PB) ratio is 0.61.
Can you provide the expected EPS growth for MBG stock?
The Earnings per Share (EPS) of MERCEDES-BENZ GROUP AG (MBG.DE) is expected to decline by -47.79% in the next year.