MTU AERO ENGINES AG (MTX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MTX - DE000A0D9PT0 - Common Stock
374.4 EUR
-3.6 (-0.95%)
We assign a fundamental rating of 5 out of 10 to MTX. MTX was compared to 53 industry peers in the Aerospace & Defense industry. MTX has an average financial health and profitability rating. MTX is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year MTX was profitable.
- MTX had a positive operating cash flow in the past year.
- Of the past 5 years MTX 4 years were profitable.
- In the past 5 years MTX always reported a positive cash flow from operatings.
1.2 Ratios
- MTX has a better Return On Assets (7.23%) than 83.02% of its industry peers.
- MTX's Return On Equity of 22.17% is fine compared to the rest of the industry. MTX outperforms 79.25% of its industry peers.
- The Return On Invested Capital of MTX (10.39%) is better than 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 22.17% | ||
| ROIC | 10.39% |
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 better Profit Margin (10.44%) than 81.13% of its industry peers.
- MTX's Profit Margin has declined in the last couple of years.
- MTX has a better Operating Margin (12.25%) than 77.36% of its industry peers.
- MTX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 16.90%, MTX is doing worse than 71.70% 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 | 12.25% | ||
| PM (TTM) | 10.44% | ||
| GM | 16.9% |
OM growth 3Y17.54%
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MTX is still creating some value.
- The number of shares outstanding for MTX remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, MTX has more shares outstanding
- Compared to 1 year ago, MTX has a worse debt to assets ratio.
2.2 Solvency
- MTX has an Altman-Z score of 3.10. This indicates that MTX is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.10, MTX is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
- MTX has a debt to FCF ratio of 19.44. This is a negative value and a sign of low solvency as MTX would need 19.44 years to pay back of all of its debts.
- MTX has a worse Debt to FCF ratio (19.44) than 62.26% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that MTX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.56, MTX is in line with its industry, outperforming 52.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 19.44 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.26
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MTX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.39, MTX is in the better half of the industry, outperforming 67.92% of the companies in the same industry.
- MTX has a Quick Ratio of 1.04. This is a normal value and indicates that MTX is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.04, MTX is doing good in the industry, outperforming 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- MTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.03%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
- Looking at the last year, MTX shows a very strong growth in Revenue. The Revenue has grown by 38.19%.
- Measured over the past years, MTX shows a quite strong growth in Revenue. The Revenue has been growing by 9.87% on average per year.
EPS 1Y (TTM)35.03%
EPS 3Y29.94%
EPS 5Y6.33%
EPS Q2Q%21.2%
Revenue 1Y (TTM)38.19%
Revenue growth 3Y20.95%
Revenue growth 5Y9.87%
Sales Q2Q%12.39%
3.2 Future
- MTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.94% yearly.
- Based on estimates for the next years, MTX will show a quite strong growth in Revenue. The Revenue will grow by 11.02% on average per year.
EPS Next Y28.38%
EPS Next 2Y16.36%
EPS Next 3Y14.21%
EPS Next 5Y13.94%
Revenue Next Year16.84%
Revenue Next 2Y13%
Revenue Next 3Y12.01%
Revenue Next 5Y11.02%
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.
- 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
- With a Price/Earnings ratio of 21.68, MTX is valued on the expensive side.
- Based on the Price/Earnings ratio, MTX is valued cheaper than 96.23% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MTX is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 19.69, MTX is valued on the expensive side.
- MTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. MTX is cheaper than 92.45% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MTX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
- 86.79% of the companies in the same industry are more expensive than MTX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MTX is valued a bit more expensive than the industry average as 62.26% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.92 | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MTX's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)3.43
EPS Next 2Y16.36%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.58%, MTX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, MTX has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, MTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
- 15.38% of the earnings are spent on dividend by MTX. This is a low number and sustainable payout ratio.
DP15.38%
EPS Next 2Y16.36%
EPS Next 3Y14.21%
MTU AERO ENGINES AG / MTX.DE FAQ
Can you provide the ChartMill fundamental rating for MTU AERO ENGINES AG?
ChartMill assigns a fundamental rating of 5 / 10 to MTX.DE.
Can you provide the valuation status for MTU AERO ENGINES AG?
ChartMill assigns a valuation rating of 5 / 10 to MTU AERO ENGINES AG (MTX.DE). This can be considered as Fairly Valued.
How profitable is MTU AERO ENGINES AG (MTX.DE) stock?
MTU AERO ENGINES AG (MTX.DE) has a profitability rating of 5 / 10.
How financially healthy is MTU AERO ENGINES AG?
The financial health rating of MTU AERO ENGINES AG (MTX.DE) is 4 / 10.
What is the expected EPS growth for MTU AERO ENGINES AG (MTX.DE) stock?
The Earnings per Share (EPS) of MTU AERO ENGINES AG (MTX.DE) is expected to grow by 28.38% in the next year.