XTRA:MTX

Stock Analysis Report

Executive Summary

MTU Aero Engines AG, together with its subsidiaries, designs, develops, manufactures, markets, and supports commercial and military engines modules, and components in Germany, other European countries, North America, Asia, and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has MTU Aero Engines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-25.3%

MTX

-18.3%

DE Aerospace & Defense

-3.0%

DE Market


1 Year Return

-45.9%

MTX

-41.9%

DE Aerospace & Defense

-20.6%

DE Market

Return vs Industry: MTX underperformed the German Aerospace & Defense industry which returned -41.7% over the past year.

Return vs Market: MTX underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

MTXIndustryMarket
7 Day-25.3%-18.3%-3.0%
30 Day-48.2%-40.9%-19.1%
90 Day-56.2%-47.1%-26.2%
1 Year-45.1%-45.9%-40.9%-41.9%-18.3%-20.6%
3 Year-5.1%-9.3%-18.5%-23.3%-18.8%-25.6%
5 Year31.3%21.1%-0.6%-12.1%-19.9%-30.7%

Price Volatility Vs. Market

How volatile is MTU Aero Engines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MTU Aero Engines undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTX (€112.9) is trading below our estimate of fair value (€181.43)

Significantly Below Fair Value: MTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTX is good value based on its PE Ratio (12.2x) compared to the Aerospace & Defense industry average (13.4x).

PE vs Market: MTX is good value based on its PE Ratio (12.2x) compared to the German market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: MTX is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: MTX is overvalued based on its PB Ratio (2.6x) compared to the XE Aerospace & Defense industry average (1.4x).


Next Steps

Future Growth

How is MTU Aero Engines forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTX's forecast earnings growth (5.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: MTX's earnings (5.5% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: MTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTX's revenue (4.9% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: MTX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTX's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has MTU Aero Engines performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTX has high quality earnings.

Growing Profit Margin: MTX's current net profit margins (10.3%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: MTX's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: MTX's earnings growth over the past year (7%) is below its 5-year average (18.3% per year).

Earnings vs Industry: MTX earnings growth over the past year (7%) underperformed the Aerospace & Defense industry 8.6%.


Return on Equity

High ROE: MTX's Return on Equity (20.2%) is considered high.


Next Steps

Financial Health

How is MTU Aero Engines's financial position?


Financial Position Analysis

Short Term Liabilities: MTX's short term assets (€3.6B) exceed its short term liabilities (€3.2B).

Long Term Liabilities: MTX's short term assets (€3.6B) exceed its long term liabilities (€2.1B).


Debt to Equity History and Analysis

Debt Level: MTX's debt to equity ratio (44.2%) is considered high.

Reducing Debt: MTX's debt to equity ratio has reduced from 86% to 44.2% over the past 5 years.

Debt Coverage: MTX's debt is well covered by operating cash flow (77.7%).

Interest Coverage: MTX's interest payments on its debt are well covered by EBIT (41.9x coverage).


Balance Sheet

Inventory Level: MTX has a high level of physical assets or inventory.

Debt Coverage by Assets: MTX's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is MTU Aero Engines's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTX's dividend (2.52%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: MTX's dividend (2.52%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: MTX's dividends per share have been stable in the past 10 years.

Growing Dividend: MTX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), MTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTX's dividends in 3 years are forecast to be well covered by earnings (40.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Reiner Winkler (58yo)

6.25s

Tenure

€2,825,102

Compensation

Mr. Reiner Winkler has been the Chief Executive Officer MTU Aero Engines AG since January 1, 2014 and served as its Chief Financial Officer since May 2005. Mr. Winkler serves as Member of Advisory Council  ...


CEO Compensation Analysis

Compensation vs Market: Reiner's total compensation ($USD3.07M) is about average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Reiner's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Reiner Winkler
CEO & Member of the Executive Board6.25yrs€2.83mno data
Josef Mailer
Employee Representative Deputy Chairman of the Supervisory Board4.5yrs€122.00kno data
Peter Kameritsch
CFO, Chief Information Officer & Member of the Executive Board2.25yrs€2.84mno data
Michael Schreyögg
Chief Program Officer & Member of the Executive Board6.75yrs€1.48mno data
Lars Wagner
COO & Member of the Executive Board2.25yrs€1.30mno data
Heike Madan
Employee Representative Member of Supervisory Board4yrs€84.00kno data
Angelo Gross
Employee Representative Member of Supervisory Board2yrs€48.11kno data
Anita Heimerl
Employee Representative Member of Supervisory Board1.75yrs€31.78kno data
Thomas Franz
Vice President of Investor Relationsno datano datano data
Eckhard Zanger
Senior Vice President of Corporate Communications & Public Affairsno datano datano data

4.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MTX's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Josef Mailer
Employee Representative Deputy Chairman of the Supervisory Board4.5yrs€122.00kno data
Heike Madan
Employee Representative Member of Supervisory Board4yrs€84.00kno data
Angelo Gross
Employee Representative Member of Supervisory Board2yrs€48.11kno data
Anita Heimerl
Employee Representative Member of Supervisory Board1.75yrs€31.78kno data
Roberto Armellini
Employee Representative Member of Supervisory Board0.83yrno datano data
Jürgen Geißinger
Member of Supervisory Board14.5yrs€88.00kno data
Klaus Eberhardt
Chairman of the Supervisory Board12.25yrs€227.00kno data
Klaus Steffens
Member of Supervisory Boardno data€65.00kno data
Joachim Rauhut
Member of Supervisory Board10.92yrs€104.00kno data
Thomas Dautl
Member of Supervisory Board12yrs€65.00kno data

4.5yrs

Average Tenure

67yo

Average Age

Experienced Board: MTX's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MTU Aero Engines AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTU Aero Engines AG
  • Ticker: MTX
  • Exchange: XTRA
  • Founded: 1913
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €6.334b
  • Shares outstanding: 52.85m
  • Website: https://www.mtu.de

Number of Employees


Location

  • MTU Aero Engines AG
  • Dachauer Strasse 665
  • Munich
  • Bavaria
  • 80995
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTXDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 2005
MTXXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJun 2005
0FC9LSE (London Stock Exchange)YesRegistered SharesGBEURJun 2005
MTUA.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJun 2005
MTXDBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJun 2005
MTXSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 2005
MTXWBAG (Wiener Boerse AG)YesRegistered SharesATEURJun 2005
MTX NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJun 2005
MTXETLX (Eurotlx)YesRegistered SharesITEURJun 2005
MTUA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008
MTX1BST (Boerse-Stuttgart)UNSPONSORD ADRDEEUROct 2008
MTXCDB (Deutsche Boerse AG)NPV (NEW SHARES)DEEURMar 2020

Biography

MTU Aero Engines AG, together with its subsidiaries, designs, develops, manufactures, markets, and supports commercial and military engines modules, and components in Germany, other European countries, North America, Asia, and internationally. It operates through two segments, Commercial and Military Engine Business; and Commercial Maintenance Business. The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, and business jets; military aircraft engines for fighter aircraft, helicopters, and transport aircraft; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and designs, develops, manufactures, and markets various brush seals. In addition, the company offers integrated leasing and asset management services; and technical support, logistic support, and facilities services. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 21:30
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.