MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
BIT:1MBG - Euronext Milan - DE0007100000 - Common Stock - Currency: EUR
Taking everything into account, 1MBG scores 5 out of 10 in our fundamental rating. 1MBG was compared to 33 industry peers in the Automobiles industry. 1MBG scores excellent on profitability, but 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.
1MBG had a positive operating cash flow in the past year.
1MBG had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MBG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.41%, 1MBG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
1MBG has a better Return On Equity (9.45%) than 69.70% of its industry peers.
1MBG's Return On Invested Capital of 4.36% is fine compared to the rest 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
1MBG's Profit Margin of 6.23% is fine compared to the rest of the industry. 1MBG outperforms 78.79% of its industry peers.
1MBG's Profit Margin has improved in the last couple of years.
1MBG's Operating Margin of 7.79% is amongst the best of the industry. 1MBG outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of 1MBG has grown nicely.
1MBG has a Gross Margin of 19.61%. This is comparable to the rest of the industry: 1MBG outperforms 57.58% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1MBG is destroying value.
Compared to 1 year ago, 1MBG has less shares outstanding
Compared to 5 years ago, 1MBG has less shares outstanding
1MBG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that 1MBG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, 1MBG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
1MBG has a Debt to FCF ratio of 10.17. This is in the better half of the industry: 1MBG outperforms 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 | 1.4 |
ROIC/WACC0.67
WACC6.55%
2.3 Liquidity
1MBG has a Current Ratio of 1.34. 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 Current ratio, with a value of 1.34, 1MBG is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
1MBG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.19%.
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.
1MBG shows a decrease in Revenue. In the last year, the revenue decreased by -5.69%.
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
1MBG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.76% yearly.
1MBG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
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
Based on the Price/Earnings ratio of 5.84, the valuation of 1MBG can be described as very cheap.
1MBG's Price/Earnings ratio is rather cheap when compared to the industry. 1MBG is cheaper than 84.85% of the companies in the same industry.
1MBG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 5.77, the valuation of 1MBG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MBG indicates a somewhat cheap valuation: 1MBG is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1MBG to the average of the S&P500 Index (21.76), we can say 1MBG is valued rather cheaply.
| 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 | 6.56 |
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.
1MBG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.1% |
5.2 History
On average, the dividend of 1MBG grows each year by 11.89%, which is quite nice.
Dividend Growth(5Y)11.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
61.56% of the earnings are spent on dividend by 1MBG. 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)-0.55%
PT rev (3m)-8.53%
EPS NQ rev (1m)-15.45%
EPS NQ rev (3m)-29.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.98%
Revenue NQ rev (1m)-2.91%
Revenue NQ rev (3m)-3.14%
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 | 6.56 |
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 | 1.4 |
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%