MTU AERO ENGINES AG (MTX.DE) Stock Fundamental Analysis
FRA:MTX - Deutsche Boerse Ag - DE000A0D9PT0 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to MTX. MTX was compared to 43 industry peers in the Aerospace & Defense industry. While MTX is still in line with the averages on profitability rating, there are concerns on its financial health. MTX shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
MTX had positive earnings in the past year.
In the past year MTX had a positive cash flow from operations.
MTX had positive earnings in 4 of the past 5 years.
MTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTX has a better Return On Assets (5.07%) than 74.42% of its industry peers.
The Return On Equity of MTX (18.82%) is better than 76.74% of its industry peers.
With a decent Return On Invested Capital value of 9.36%, MTX is doing good in the industry, outperforming 65.12% of the companies in the same industry.
| 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
MTX has a Profit Margin of 8.54%. This is amongst the best in the industry. MTX outperforms 86.05% of its industry peers.
In the last couple of years the Profit Margin of MTX has declined.
MTX has a Operating Margin of 11.33%. This is in the better half of the industry: MTX outperforms 74.42% of its industry peers.
In the last couple of years the Operating Margin of MTX has declined.
Looking at the Gross Margin, with a value of 16.11%, MTX is doing worse than 69.77% of the companies in the same industry.
In the last couple of years the Gross Margin of MTX has declined.
| 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
MTX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MTX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MTX has been increased compared to 5 years ago.
Compared to 1 year ago, MTX has a worse debt to assets ratio.
2.2 Solvency
MTX has an Altman-Z score of 2.51. This is not the best score and indicates that MTX is in the grey zone with still only limited risk for bankruptcy at the moment.
MTX's Altman-Z score of 2.51 is in line compared to the rest of the industry. MTX outperforms 55.81% of its industry peers.
MTX has a debt to FCF ratio of 69.12. This is a negative value and a sign of low solvency as MTX would need 69.12 years to pay back of all of its debts.
MTX's Debt to FCF ratio of 69.12 is on the low side compared to the rest of the industry. MTX is outperformed by 72.09% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MTX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, MTX is in line with its industry, outperforming 48.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 69.12 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.36
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MTX should not have too much problems paying its short term obligations.
MTX has a Current ratio of 1.24. This is comparable to the rest of the industry: MTX outperforms 55.81% of its industry peers.
MTX has a Quick Ratio of 1.24. This is a bad value and indicates that MTX is not financially healthy enough and could expect problems in meeting its short term obligations.
MTX has a better Quick ratio (0.95) than 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
MTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.53%, which is quite impressive.
Measured over the past 5 years, MTX shows a small growth in Earnings Per Share. The EPS has been growing by 6.33% on average per year.
Looking at the last year, MTX shows a very strong growth in Revenue. The Revenue has grown by 38.19%.
The Revenue has been growing by 9.87% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.
MTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.44% yearly.
EPS Next Y13.64%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
EPS Next 5Y12.16%
Revenue Next Year14.61%
Revenue Next 2Y11.51%
Revenue Next 3Y10.88%
Revenue Next 5Y9.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.60 indicates a rather expensive valuation of MTX.
Based on the Price/Earnings ratio, MTX is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. MTX is around the same levels.
With a Price/Forward Earnings ratio of 19.41, MTX is valued on the expensive side.
MTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTX is cheaper than 79.07% of the companies in the same industry.
MTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 19.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTX is valued a bit cheaper than 74.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTX is valued a bit more expensive than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 447.89 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
MTX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MTX's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)1.66
PEG (5Y)3.57
EPS Next 2Y11.91%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
MTX has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, MTX has a dividend in line with its industry peers.
With a Dividend Yield of 0.62, MTX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of MTX decreases each year by -5.03%.
Dividend Growth(5Y)-5.03%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
18.48% of the earnings are spent on dividend by MTX. This is a low number and sustainable payout ratio.
DP18.48%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
FRA:MTX (6/13/2025, 5:36:15 PM)
341.2
-3.9 (-1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners74.58%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.36B
Analysts72.8
Price Target337.41 (-1.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend2.18
Dividend Growth(5Y)-5.03%
DP18.48%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.33%
Min EPS beat(2)0.12%
Max EPS beat(2)2.54%
EPS beat(4)4
Avg EPS beat(4)3.55%
Min EPS beat(4)0.12%
Max EPS beat(4)11.24%
EPS beat(8)6
Avg EPS beat(8)4.73%
EPS beat(12)7
Avg EPS beat(12)2.84%
EPS beat(16)10
Avg EPS beat(16)3.98%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)2.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)2.32%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.44%
PT rev (3m)-2.87%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 19.41 | ||
| P/S | 2.48 | ||
| P/FCF | 447.89 | ||
| P/OCF | 25.72 | ||
| P/B | 5.46 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)15.1
EY4.43%
EPS(NY)17.58
Fwd EY5.15%
FCF(TTM)0.76
FCFY0.22%
OCF(TTM)13.27
OCFY3.89%
SpS137.7
BVpS62.5
TBVpS38.11
PEG (NY)1.66
PEG (5Y)3.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 18.82% | ||
| ROCE | 13.05% | ||
| ROIC | 9.36% | ||
| ROICexc | 15.73% | ||
| ROICexgc | 23.94% | ||
| OM | 11.33% | ||
| PM (TTM) | 8.54% | ||
| GM | 16.11% | ||
| FCFM | 0.55% |
ROA(3y)2.55%
ROA(5y)2.41%
ROE(3y)8.72%
ROE(5y)7.98%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y51.13%
ROICexcg growth 5Y11.08%
ROICexc growth 3Y45.42%
ROICexc growth 5Y8.65%
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%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 69.12 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 194.51% | ||
| Cap/Sales | 9.08% | ||
| Interest Coverage | 24 | ||
| Cash Conversion | 60.2% | ||
| Profit Quality | 6.48% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.51 |
F-Score7
WACC6.86%
ROIC/WACC1.36
Cap/Depr(3y)170.27%
Cap/Depr(5y)151.83%
Cap/Sales(3y)8.23%
Cap/Sales(5y)7.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.53%
EPS 3Y29.94%
EPS 5Y6.33%
EPS Q2Q%36.18%
EPS Next Y13.64%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
EPS Next 5Y12.16%
Revenue 1Y (TTM)38.19%
Revenue growth 3Y20.95%
Revenue growth 5Y9.87%
Sales Q2Q%24.9%
Revenue Next Year14.61%
Revenue Next 2Y11.51%
Revenue Next 3Y10.88%
Revenue Next 5Y9.44%
EBIT growth 1Y423.08%
EBIT growth 3Y39.93%
EBIT growth 5Y5.82%
EBIT Next Year52.17%
EBIT Next 3Y20.92%
EBIT Next 5Y17.37%
FCF growth 1Y-88.08%
FCF growth 3Y-41.04%
FCF growth 5Y-35.95%
OCF growth 1Y-8.11%
OCF growth 3Y7.99%
OCF growth 5Y-3.01%