MTU AERO ENGINES AG (MTX.DE) Stock Fundamental Analysis
FRA:MTX - Deutsche Boerse Ag - DE000A0D9PT0 - Common Stock - Currency: EUR
MTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 39 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of MTX while its profitability can be described as average. MTX is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year MTX was profitable.
MTX had a positive operating cash flow in the past year.
MTX had positive earnings in 4 of the past 5 years.
In the past 5 years MTX always reported a positive cash flow from operatings.
1.2 Ratios
MTX has a better Return On Assets (5.07%) than 71.79% of its industry peers.
With a decent Return On Equity value of 18.82%, MTX is doing good in the industry, outperforming 71.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.36%, MTX is in the better half of the industry, outperforming 61.54% 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 82.05% of its industry peers.
MTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.33%, MTX is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
MTX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.11%, MTX is doing worse than 69.23% of the companies in the same industry.
MTX'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MTX is creating some value.
The number of shares outstanding for MTX remains at a similar level compared to 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
An Altman-Z score of 2.42 indicates that MTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
MTX has a Altman-Z score of 2.42. This is comparable to the rest of the industry: MTX outperforms 56.41% of its industry peers.
The Debt to FCF ratio of MTX is 69.12, which is on the high side as it means it would take MTX, 69.12 years of fcf income to pay off all of its debts.
MTX has a worse Debt to FCF ratio (69.12) than 76.92% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MTX is somewhat dependend on debt financing.
The Debt to Equity ratio of MTX (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 69.12 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.4
WACC6.68%
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 better Current ratio (1.24) than 61.54% 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 Quick ratio of 0.95. This is in the better half of the industry: MTX outperforms 79.49% 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 28.69%, 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.
MTX shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.19%.
MTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.87% yearly.
EPS 1Y (TTM)28.69%
EPS 3Y29.94%
EPS 5Y6.33%
EPS Q2Q%44.64%
Revenue 1Y (TTM)38.19%
Revenue growth 3Y20.95%
Revenue growth 5Y9.87%
Sales Q2Q%24.2%
3.2 Future
Based on estimates for the next years, MTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.56% on average per year.
MTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.62% yearly.
EPS Next Y13.64%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
EPS Next 5Y11.56%
Revenue Next Year14.81%
Revenue Next 2Y11.94%
Revenue Next 3Y11.08%
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.
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 23.03 indicates a rather expensive valuation of MTX.
Based on the Price/Earnings ratio, MTX is valued cheaper than 84.62% of the companies in the same industry.
MTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.27, the valuation of MTX can be described as rather expensive.
MTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTX is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MTX to the average of the S&P500 Index (20.81), we can say MTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
MTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTX is cheaper than 79.49% of the companies in the same industry.
MTX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MTX is more expensive than 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 424.52 | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
MTX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTX's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)3.64
EPS Next 2Y11.91%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, MTX is not a good candidate for dividend investing.
MTX's Dividend Yield is comparable with the industry average which is at 1.35.
Compared to an average S&P500 Dividend Yield of 2.45, MTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of MTX decreases each year by -5.03%.
Dividend Growth(5Y)-5.03%
Div Incr Years2
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 (5/5/2025, 5:35:30 PM)
323.4
+4.4 (+1.38%)
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 Cap17.41B
Analysts72.59
Price Target345.83 (6.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend2.18
Dividend Growth(5Y)-5.03%
DP18.48%
Div Incr Years2
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)-1.67%
PT rev (3m)-0.18%
EPS NQ rev (1m)3.77%
EPS NQ rev (3m)-3.5%
EPS NY rev (1m)-1.71%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 20.27 | ||
| P/S | 2.35 | ||
| P/FCF | 424.52 | ||
| P/OCF | 24.38 | ||
| P/B | 5.17 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)14.04
EY4.34%
EPS(NY)15.95
Fwd EY4.93%
FCF(TTM)0.76
FCFY0.24%
OCF(TTM)13.27
OCFY4.1%
SpS137.7
BVpS62.5
TBVpS38.11
PEG (NY)1.69
PEG (5Y)3.64
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 | 2.42 |
F-Score7
WACC6.68%
ROIC/WACC1.4
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)28.69%
EPS 3Y29.94%
EPS 5Y6.33%
EPS Q2Q%44.64%
EPS Next Y13.64%
EPS Next 2Y11.91%
EPS Next 3Y12.24%
EPS Next 5Y11.56%
Revenue 1Y (TTM)38.19%
Revenue growth 3Y20.95%
Revenue growth 5Y9.87%
Sales Q2Q%24.2%
Revenue Next Year14.81%
Revenue Next 2Y11.94%
Revenue Next 3Y11.08%
Revenue Next 5Y9.62%
EBIT growth 1Y423.08%
EBIT growth 3Y39.93%
EBIT growth 5Y5.82%
EBIT Next Year48.89%
EBIT Next 3Y20.92%
EBIT Next 5Y18.86%
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%