MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MBG • DE0007100000
57.56 EUR
-1.3 (-2.21%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to 1MBG. 1MBG was compared to 32 industry peers in the Automobiles industry. 1MBG has only an average score on both its financial health and profitability. 1MBG has a valuation in line with the averages, 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.
- 1MBG had a positive operating cash flow in the past year.
- Each year in the past 5 years 1MBG has been profitable.
- 1MBG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1MBG has a Return On Assets (2.44%) which is in line with its industry peers.
- 1MBG has a Return On Equity (6.81%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.72%, 1MBG is doing worse than 65.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MBG is in line with the industry average of 6.07%.
| 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
- Looking at the Profit Margin, with a value of 4.56%, 1MBG is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1MBG has grown nicely.
- 1MBG's Operating Margin of 4.89% is on the low side compared to the rest of the industry. 1MBG is outperformed by 62.50% of its industry peers.
- In the last couple of years the Operating Margin of 1MBG has grown nicely.
- The Gross Margin of 1MBG (17.85%) is comparable to the rest of the industry.
- 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1MBG is destroying value.
- Compared to 1 year ago, 1MBG has less shares outstanding
- 1MBG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1MBG has a worse debt to assets ratio.
2.2 Solvency
- 1MBG has an Altman-Z score of 1.34. This is a bad value and indicates that 1MBG is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of 1MBG (1.34) is better than 71.88% of its industry peers.
- The Debt to FCF ratio of 1MBG is 8.55, which is on the high side as it means it would take 1MBG, 8.55 years of fcf income to pay off all of its debts.
- 1MBG's Debt to FCF ratio of 8.55 is fine compared to the rest of the industry. 1MBG outperforms 68.75% of its industry peers.
- A Debt/Equity ratio of 0.70 indicates that 1MBG is somewhat dependend on debt financing.
- 1MBG has a Debt to Equity ratio of 0.70. This is in the better half of the industry: 1MBG outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.41
WACC6.58%
2.3 Liquidity
- 1MBG has a Current Ratio of 1.27. 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 Current ratio of 1.27. This is in the better half of the industry: 1MBG outperforms 68.75% of its industry peers.
- 1MBG has a Quick Ratio of 1.27. This is a bad value and indicates that 1MBG is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1MBG's Quick ratio of 0.93 is in line compared to the rest of the industry. 1MBG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The earnings per share for 1MBG have decreased strongly by -38.93% 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 -7.08% in the last year.
- 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)-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
- 1MBG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.62% yearly.
- 1MBG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.91% yearly.
EPS Next Y-49.65%
EPS Next 2Y-18.02%
EPS Next 3Y-6.48%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 8.88 indicates a reasonable valuation of 1MBG.
- 84.38% of the companies in the same industry are more expensive than 1MBG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, 1MBG is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.41, which indicates a very decent valuation of 1MBG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MBG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of 1MBG to the average of the S&P500 Index (25.57), we can say 1MBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.41 |
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.
- 1MBG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1MBG is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.63 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
- 1MBG's earnings are expected to decrease with -6.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-18.02%
EPS Next 3Y-6.48%
5. Dividend
5.1 Amount
- 1MBG has a Yearly Dividend Yield of 7.25%, which is a nice return.
- 1MBG's Dividend Yield is rather good when compared to the industry average which is at 3.74. 1MBG pays more dividend than 90.63% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MBG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
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
- 66.24% of the earnings are spent on dividend by 1MBG. This is not a sustainable payout ratio.
- The Dividend Rate of 1MBG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP66.24%
EPS Next 2Y-18.02%
EPS Next 3Y-6.48%
MERCEDES-BENZ GROUP AG / 1MBG.MI FAQ
Can you provide the ChartMill fundamental rating for MERCEDES-BENZ GROUP AG?
ChartMill assigns a fundamental rating of 4 / 10 to 1MBG.MI.
What is the valuation status of MERCEDES-BENZ GROUP AG (1MBG.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to MERCEDES-BENZ GROUP AG (1MBG.MI). This can be considered as Fairly Valued.
How profitable is MERCEDES-BENZ GROUP AG (1MBG.MI) stock?
MERCEDES-BENZ GROUP AG (1MBG.MI) has a profitability rating of 5 / 10.
What is the expected EPS growth for MERCEDES-BENZ GROUP AG (1MBG.MI) stock?
The Earnings per Share (EPS) of MERCEDES-BENZ GROUP AG (1MBG.MI) is expected to decline by -49.65% in the next year.
Can you provide the dividend sustainability for 1MBG stock?
The dividend rating of MERCEDES-BENZ GROUP AG (1MBG.MI) is 7 / 10 and the dividend payout ratio is 66.24%.