MERCEDES-BENZ GROUP AG (1MBG.MI) Stock Fundamental Analysis
BIT:1MBG - Euronext Milan - DE0007100000 - Common Stock - Currency: EUR
1MBG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Automobiles industry. Both the profitability and the financial health of 1MBG get a neutral evaluation. Nothing too spectacular is happening here. 1MBG has a bad growth rate and is valued cheaply. 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.
Of the past 5 years 1MBG 4 years were profitable.
1MBG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1MBG has a Return On Assets of 4.14%. This is in the better half of the industry: 1MBG outperforms 67.65% of its industry peers.
With a decent Return On Equity value of 12.05%, 1MBG is doing good in the industry, outperforming 61.76% of the companies in the same industry.
With a Return On Invested Capital value of 5.14%, 1MBG perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
1MBG had an Average Return On Invested Capital over the past 3 years of 6.99%. This is below the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 12.05% | ||
| ROIC | 5.14% |
ROA(3y)6.62%
ROA(5y)4.38%
ROE(3y)21.5%
ROE(5y)14.87%
ROIC(3y)6.99%
ROIC(5y)5.47%
1.3 Margins
1MBG's Profit Margin of 7.35% is fine compared to the rest of the industry. 1MBG outperforms 73.53% of its industry peers.
In the last couple of years the Profit Margin of 1MBG has grown nicely.
1MBG has a Operating Margin of 8.94%. This is in the better half of the industry: 1MBG outperforms 67.65% of its industry peers.
1MBG's Operating Margin has improved in the last couple of years.
1MBG has a Gross Margin (19.76%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1MBG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | 7.35% | ||
| GM | 19.76% |
OM growth 3Y26.09%
OM growth 5Y12.89%
PM growth 3Y46.2%
PM growth 5Y16.53%
GM growth 3Y9.72%
GM growth 5Y2.49%
2. Health
2.1 Basic Checks
1MBG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for 1MBG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1MBG has an Altman-Z score of 1.48. This is a bad value and indicates that 1MBG is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.48, 1MBG is doing good in the industry, outperforming 61.76% of the companies in the same industry.
1MBG has a debt to FCF ratio of 14.62. This is a negative value and a sign of low solvency as 1MBG would need 14.62 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 14.62, 1MBG is doing good in the industry, outperforming 70.59% of the companies in the same industry.
1MBG has a Debt/Equity ratio of 0.81. This is a neutral value indicating 1MBG is somewhat dependend on debt financing.
1MBG has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: 1MBG outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.62 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.8
WACC6.42%
2.3 Liquidity
1MBG has a Current Ratio of 1.36. This is a normal value and indicates that 1MBG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1MBG (1.36) is better than 76.47% of its industry peers.
A Quick Ratio of 0.98 indicates that 1MBG may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.98, 1MBG is doing good in the industry, outperforming 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| 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 -38.48%.
Measured over the past 5 years, 1MBG shows a small growth in Earnings Per Share. The EPS has been growing by 4.74% on average per year.
EPS 1Y (TTM)-38.48%
EPS 3Y-11.26%
EPS 5Y4.74%
EPS Q2Q%-77.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.44%
3.2 Future
The Earnings Per Share is expected to grow by 10.59% on average over the next years. This is quite good.
Based on estimates for the next years, 1MBG will show a small growth in Revenue. The Revenue will grow by 0.24% on average per year.
EPS Next Y13.34%
EPS Next 2Y11.71%
EPS Next 3Y17.08%
EPS Next 5Y10.59%
Revenue Next Year-2.46%
Revenue Next 2Y-0.65%
Revenue Next 3Y0.42%
Revenue Next 5Y0.24%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.32, the valuation of 1MBG can be described as very cheap.
1MBG's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MBG is cheaper than 64.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. 1MBG is valued rather cheaply when compared to this.
1MBG is valuated cheaply with a Price/Forward Earnings ratio of 6.46.
64.71% of the companies in the same industry are more expensive than 1MBG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1MBG to the average of the S&P500 Index (22.10), we can say 1MBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 6.46 |
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.
Based on the Price/Free Cash Flow ratio, 1MBG is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
1MBG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1MBG may justify a higher PE ratio.
1MBG's earnings are expected to grow with 17.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.55
EPS Next 2Y11.71%
EPS Next 3Y17.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.90%, 1MBG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.74, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
5.2 History
On average, the dividend of 1MBG grows each year by 7.60%, which is quite nice.
Dividend Growth(5Y)7.6%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.61% of the earnings are spent on dividend by 1MBG. This is a bit on the high side, but may be sustainable.
The dividend of 1MBG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.61%
EPS Next 2Y11.71%
EPS Next 3Y17.08%
BIT:1MBG (3/7/2025, 7:00:00 PM)
60.65
+0.97 (+1.63%)
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 Cap58.40B
Analysts66.88
Price Target66.62 (9.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
Yearly Dividend5.26
Dividend Growth(5Y)7.6%
DP50.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.42%
Min EPS beat(2)-6.3%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)3.62%
Min EPS beat(4)-6.3%
Max EPS beat(4)10.13%
EPS beat(8)6
Avg EPS beat(8)6.72%
EPS beat(12)8
Avg EPS beat(12)2.89%
EPS beat(16)12
Avg EPS beat(16)10.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.64%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)-2.66%
Revenue beat(4)1
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)0.85%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)5
Avg Revenue beat(12)-1.61%
Revenue beat(16)5
Avg Revenue beat(16)-6.2%
PT rev (1m)1.57%
PT rev (3m)-4.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.87%
EPS NY rev (1m)1.86%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 6.46 | ||
| P/S | 0.4 | ||
| P/FCF | 7.79 | ||
| P/OCF | 3.7 | ||
| P/B | 0.65 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 6.77 |
EPS(TTM)8.28
EY13.65%
EPS(NY)9.39
Fwd EY15.47%
FCF(TTM)7.79
FCFY12.84%
OCF(TTM)16.38
OCFY27%
SpS153.08
BVpS93.4
TBVpS74.09
PEG (NY)0.55
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 12.05% | ||
| ROCE | 7.07% | ||
| ROIC | 5.14% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 6.65% | ||
| OM | 8.94% | ||
| PM (TTM) | 7.35% | ||
| GM | 19.76% | ||
| FCFM | 5.09% |
ROA(3y)6.62%
ROA(5y)4.38%
ROE(3y)21.5%
ROE(5y)14.87%
ROIC(3y)6.99%
ROIC(5y)5.47%
ROICexc(3y)8.18%
ROICexc(5y)6.4%
ROICexgc(3y)9.18%
ROICexgc(5y)7.16%
ROCE(3y)9.62%
ROCE(5y)7.55%
ROICexcg growth 3Y36.47%
ROICexcg growth 5Y11.89%
ROICexc growth 3Y36.09%
ROICexc growth 5Y11.4%
OM growth 3Y26.09%
OM growth 5Y12.89%
PM growth 3Y46.2%
PM growth 5Y16.53%
GM growth 3Y9.72%
GM growth 5Y2.49%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.62 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 123.74% | ||
| Cap/Sales | 5.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.42% | ||
| Profit Quality | 69.18% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.48 |
F-Score5
WACC6.42%
ROIC/WACC0.8
Cap/Depr(3y)111.31%
Cap/Depr(5y)113.86%
Cap/Sales(3y)5.14%
Cap/Sales(5y)5.75%
Profit Quality(3y)62.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.48%
EPS 3Y-11.26%
EPS 5Y4.74%
EPS Q2Q%-77.9%
EPS Next Y13.34%
EPS Next 2Y11.71%
EPS Next 3Y17.08%
EPS Next 5Y10.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.44%
Revenue Next Year-2.46%
Revenue Next 2Y-0.65%
Revenue Next 3Y0.42%
Revenue Next 5Y0.24%
EBIT growth 1Y-27.33%
EBIT growth 3Y36.12%
EBIT growth 5Y10.92%
EBIT Next Year1.67%
EBIT Next 3Y3.75%
EBIT Next 5Y3.67%
FCF growth 1Y-30%
FCF growth 3Y-23.12%
FCF growth 5YN/A
OCF growth 1Y-9.95%
OCF growth 3Y-13.47%
OCF growth 5Y111.37%