MERCEDES-BENZ GROUP AG (MBG.DE) Stock Fundamental Analysis
FRA:MBG - Deutsche Boerse Ag - DE0007100000 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to MBG. MBG was compared to 29 industry peers in the Automobiles industry. MBG has only an average score on both its financial health and profitability. MBG is valued correctly, but it does not seem to be growing. Finally MBG also has an excellent dividend rating. With these ratings, MBG could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
MBG had positive earnings in the past year.
MBG had a positive operating cash flow in the past year.
Each year in the past 5 years MBG has been profitable.
In the past 5 years MBG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.14%, MBG perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
With a decent Return On Equity value of 12.05%, MBG is doing good in the industry, outperforming 62.96% of the companies in the same industry.
MBG has a worse Return On Invested Capital (5.14%) than 62.96% of its industry peers.
MBG had an Average Return On Invested Capital over the past 3 years of 6.99%. This is in line with the industry average of 8.71%.
| 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
With a decent Profit Margin value of 7.35%, MBG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MBG's Profit Margin has improved in the last couple of years.
MBG has a Operating Margin (8.94%) which is comparable to the rest of the industry.
MBG's Operating Margin has improved in the last couple of years.
MBG's Gross Margin of 19.76% is in line compared to the rest of the industry. MBG outperforms 51.85% of its industry peers.
In the last couple of years the Gross Margin of MBG 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MBG is creating some value.
MBG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MBG has less shares outstanding
The debt/assets ratio for MBG has been reduced compared to a year ago.
2.2 Solvency
MBG has an Altman-Z score of 1.47. 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 of 1.47. This is in the better half of the industry: MBG outperforms 62.96% of its industry peers.
The Debt to FCF ratio of MBG is 14.62, which is on the high side as it means it would take MBG, 14.62 years of fcf income to pay off all of its debts.
MBG's Debt to FCF ratio of 14.62 is fine compared to the rest of the industry. MBG outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that MBG is somewhat dependend on debt financing.
The Debt to Equity ratio of MBG (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.62 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.77
WACC6.67%
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 has a better Current ratio (1.36) than 70.37% of its industry peers.
MBG has a Quick Ratio of 1.36. 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 0.98. This is in the better half of the industry: MBG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for MBG have decreased strongly by -25.23% in the last year.
Measured over the past years, MBG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.73% on average per year.
The Revenue has decreased by -4.26% in the past year.
MBG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.75% yearly.
EPS 1Y (TTM)-25.23%
EPS 3Y41.61%
EPS 5Y14.73%
EPS Q2Q%-47.38%
Revenue 1Y (TTM)-4.26%
Revenue growth 3Y7.96%
Revenue growth 5Y-1.75%
Sales Q2Q%-7.18%
3.2 Future
MBG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.62% yearly.
Based on estimates for the next years, MBG will show a decrease in Revenue. The Revenue will decrease by -0.61% on average per year.
EPS Next Y-27.8%
EPS Next 2Y-16.61%
EPS Next 3Y-8.76%
EPS Next 5Y-0.62%
Revenue Next Year-4.53%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.05%
Revenue Next 5Y-0.61%
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
With a Price/Earnings ratio of 5.33, the valuation of MBG can be described as very cheap.
Based on the Price/Earnings ratio, MBG is valued a bit cheaper than 74.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of MBG to the average of the S&P500 Index (28.47), we can say MBG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.04, the valuation of MBG can be described as very cheap.
MBG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 92.74. MBG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 6.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MBG indicates a slightly more expensive valuation: MBG is more expensive than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MBG indicates a somewhat cheap valuation: MBG is cheaper than 74.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
The decent profitability rating of MBG may justify a higher PE ratio.
MBG's earnings are expected to decrease with -8.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-16.61%
EPS Next 3Y-8.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.93%, MBG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.70, MBG pays a bit more dividend than its industry peers.
MBG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
5.2 History
The dividend of MBG is nicely growing with an annual growth rate of 7.60%!
Dividend Growth(5Y)7.6%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
MBG pays out 50.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MBG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.61%
EPS Next 2Y-16.61%
EPS Next 3Y-8.76%
MERCEDES-BENZ GROUP AG
FRA:MBG (2/5/2025, 12:47:12 PM)
56.535
-0.81 (-1.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners31.67%
Inst Owner ChangeN/A
Ins Owners9.69%
Ins Owner ChangeN/A
Market Cap54.44B
Analysts69.03
Price Target65.68 (16.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
Yearly Dividend5.26
Dividend Growth(5Y)7.6%
DP50.61%
Div Incr Years1
Div Non Decr Years2
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)-1.2%
PT rev (3m)-6.09%
EPS NQ rev (1m)9.59%
EPS NQ rev (3m)8.8%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-16.46%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 6.04 | ||
| P/S | 0.37 | ||
| P/FCF | 7.26 | ||
| P/OCF | 3.45 | ||
| P/B | 0.61 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)10.61
EY18.77%
EPS(NY)9.36
Fwd EY16.56%
FCF(TTM)7.79
FCFY13.78%
OCF(TTM)16.38
OCFY28.97%
SpS153.08
BVpS93.4
TBVpS74.09
PEG (NY)N/A
PEG (5Y)0.36
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 | 1.47 |
F-Score5
WACC6.67%
ROIC/WACC0.77
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)-25.23%
EPS 3Y41.61%
EPS 5Y14.73%
EPS Q2Q%-47.38%
EPS Next Y-27.8%
EPS Next 2Y-16.61%
EPS Next 3Y-8.76%
EPS Next 5Y-0.62%
Revenue 1Y (TTM)-4.26%
Revenue growth 3Y7.96%
Revenue growth 5Y-1.75%
Sales Q2Q%-7.18%
Revenue Next Year-4.53%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.05%
Revenue Next 5Y-0.61%
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%