MTU AERO ENGINES AG (1MTX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MTX - DE000A0D9PT0 - Common Stock
381.2 EUR
+37.5 (+10.91%)
We assign a fundamental rating of 4 out of 10 to 1MTX. 1MTX was compared to 53 industry peers in the Aerospace & Defense industry. 1MTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1MTX is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- 1MTX had positive earnings in the past year.
- 1MTX had a positive operating cash flow in the past year.
- Of the past 5 years 1MTX 4 years were profitable.
- Each year in the past 5 years 1MTX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1MTX (5.07%) is better than 69.81% of its industry peers.
- 1MTX has a better Return On Equity (18.82%) than 71.70% of its industry peers.
- 1MTX has a better Return On Invested Capital (9.36%) than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 18.82% | ||
| ROIC | 9.36% |
ROA(3y)2.55%
ROA(5y)2.41%
ROE(3y)8.72%
ROE(5y)7.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of 1MTX (8.54%) is better than 77.36% of its industry peers.
- 1MTX's Profit Margin has declined in the last couple of years.
- 1MTX has a Operating Margin of 11.33%. This is in the better half of the industry: 1MTX outperforms 69.81% of its industry peers.
- 1MTX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 16.11%, 1MTX is doing worse than 73.58% of the companies in the same industry.
- 1MTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.33% | ||
| PM (TTM) | 8.54% | ||
| GM | 16.11% |
OM growth 3Y15.69%
OM growth 5Y-3.69%
PM growth 3Y17.24%
PM growth 5Y-3.73%
GM growth 3Y6.66%
GM growth 5Y-3.81%
2. Health
2.1 Basic Checks
- 1MTX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1MTX has about the same amount of shares outstanding.
- The number of shares outstanding for 1MTX has been increased compared to 5 years ago.
- Compared to 1 year ago, 1MTX has a worse debt to assets ratio.
2.2 Solvency
- 1MTX has an Altman-Z score of 2.64. This is not the best score and indicates that 1MTX is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1MTX's Altman-Z score of 2.64 is in line compared to the rest of the industry. 1MTX outperforms 41.51% of its industry peers.
- The Debt to FCF ratio of 1MTX is 69.12, which is on the high side as it means it would take 1MTX, 69.12 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1MTX (69.12) is worse than 69.81% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that 1MTX is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1MTX (0.63) is worse than 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 69.12 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.14
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that 1MTX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.24, 1MTX is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
- 1MTX has a Quick Ratio of 1.24. This is a bad value and indicates that 1MTX is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1MTX (0.95) is better than 66.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- 1MTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.53%, which is quite impressive.
- 1MTX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
- 1MTX shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.19%.
- 1MTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.87% yearly.
EPS 1Y (TTM)38.53%
EPS 3Y29.94%
EPS 5Y6.33%
EPS Q2Q%36.18%
Revenue 1Y (TTM)38.19%
Revenue growth 3Y20.95%
Revenue growth 5Y9.87%
Sales Q2Q%24.9%
3.2 Future
- 1MTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.56% yearly.
- Based on estimates for the next years, 1MTX will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y13.64%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
EPS Next 5Y11.56%
Revenue Next Year14.61%
Revenue Next 2Y11.51%
Revenue Next 3Y10.88%
Revenue Next 5Y9.62%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.25 indicates a quite expensive valuation of 1MTX.
- Compared to the rest of the industry, the Price/Earnings ratio of 1MTX indicates a rather cheap valuation: 1MTX is cheaper than 90.57% of the companies listed in the same industry.
- 1MTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 21.68 indicates a rather expensive valuation of 1MTX.
- Based on the Price/Forward Earnings ratio, 1MTX is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 1MTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 21.68 |
4.2 Price Multiples
- 83.02% of the companies in the same industry are more expensive than 1MTX, based on the Enterprise Value to EBITDA ratio.
- 66.04% of the companies in the same industry are cheaper than 1MTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 500.39 | ||
| EV/EBITDA | 16.77 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MTX does not grow enough to justify the current Price/Earnings ratio.
- 1MTX's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)3.99
EPS Next 2Y11.91%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
- 1MTX has a yearly dividend return of 0.62%, which is pretty low.
- 1MTX's Dividend Yield is comparable with the industry average which is at 0.74.
- With a Dividend Yield of 0.62, 1MTX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
- The dividend of 1MTX decreases each year by -5.03%.
Dividend Growth(5Y)-5.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MTX pays out 18.48% of its income as dividend. This is a sustainable payout ratio.
DP18.48%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
MTU AERO ENGINES AG / 1MTX.MI FAQ
Can you provide the ChartMill fundamental rating for MTU AERO ENGINES AG?
ChartMill assigns a fundamental rating of 4 / 10 to 1MTX.MI.
What is the valuation status of MTU AERO ENGINES AG (1MTX.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to MTU AERO ENGINES AG (1MTX.MI). This can be considered as Overvalued.
What is the profitability of 1MTX stock?
MTU AERO ENGINES AG (1MTX.MI) has a profitability rating of 4 / 10.
What is the valuation of MTU AERO ENGINES AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MTU AERO ENGINES AG (1MTX.MI) is 25.25 and the Price/Book (PB) ratio is 6.1.
How financially healthy is MTU AERO ENGINES AG?
The financial health rating of MTU AERO ENGINES AG (1MTX.MI) is 3 / 10.