XTRA:MTX

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

MTX

-5.2%

DE Aerospace & Defense

-4.7%

DE Market


1 Year Return

-37.5%

MTX

-33.4%

DE Aerospace & Defense

-3.8%

DE Market

Return vs Industry: MTX underperformed the German Aerospace & Defense industry which returned -30.8% over the past year.

Return vs Market: MTX underperformed the German Market which returned -3.8% over the past year.


Shareholder returns

MTXIndustryMarket
7 Day-2.7%-5.2%-4.7%
30 Day6.2%-0.4%-2.4%
90 Day3.8%-4.3%-4.4%
1 Year-37.5%-37.5%-32.8%-33.4%-0.8%-3.8%
3 Year8.0%4.7%-19.2%-23.8%-4.5%-12.9%
5 Year89.6%77.5%15.2%3.9%15.5%-1.0%

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?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTX (€155.35) is trading below our estimate of fair value (€193.04)

Significantly Below Fair Value: MTX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MTX is poor value based on its PE Ratio (21.7x) compared to the XE Aerospace & Defense industry average (20.6x).

PE vs Market: MTX's PE Ratio (21.7x) is in line with the German market.


Price to Earnings Growth Ratio

PEG Ratio: MTX is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MTX is overvalued based on its PB Ratio (3.4x) compared to the XE Aerospace & Defense industry average (1.7x).


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?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTX's forecast earnings growth (19.4% per year) is above the savings rate (0.2%).

Earnings vs Market: MTX's earnings (19.4% per year) are forecast to grow slower than the German market (26.2% per year).

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

Revenue vs Market: MTX's revenue (5.7% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: MTX's revenue (5.7% 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 (17.7%).


Next Steps

Past Performance

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

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTX has high quality earnings.

Growing Profit Margin: MTX's current net profit margins (8.5%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: MTX's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: MTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MTX had negative earnings growth (-17.6%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-8.4%).


Return on Equity

High ROE: MTX's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is MTU Aero Engines's financial position?


Financial Position Analysis

Short Term Liabilities: MTX's short term assets (€3.7B) exceed its short term liabilities (€3.1B).

Long Term Liabilities: MTX's short term assets (€3.7B) exceed its long term liabilities (€2.1B).


Debt to Equity History and Analysis

Debt Level: MTX's debt to equity ratio (42.3%) is considered high.

Reducing Debt: MTX's debt to equity ratio has reduced from 84.2% to 42.3% over the past 5 years.

Debt Coverage: MTX's debt is well covered by operating cash flow (61.5%).

Interest Coverage: MTX's interest payments on its debt are well covered by EBIT (27.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.74%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MTX is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTX's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Reiner Winkler (59 yo)

6.75yrs

Tenure

€2,602,776

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 ($USD3.08M) is below average for companies of similar size in the German market ($USD5.26M).

Compensation vs Earnings: Reiner's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Reiner Winkler
CEO & Member of the Executive Board6.75yrs€2.60mno data
Josef Mailer
Employee Representative Deputy Chairman of the Supervisory Board5yrs€120.50kno data
Peter Kameritsch
CFO, Chief Information Officer & Member of the Executive Board2.75yrs€1.48mno data
Michael Schreyogg
Chief Program Officer & Member of the Executive Board7.25yrs€1.48mno data
Lars Wagner
COO & Member of the Executive Board2.75yrs€1.81mno data
Heike Madan
Employee Representative Member of Supervisory Board4.5yrs€85.50kno data
Anita Heimerl
Employee Representative Member of Supervisory Board2.25yrs€65.00kno data
Roberto Armellini
Employee Representative Member of Supervisory Board1.33yrs€42.00kno data
Thomas Franz
Vice President of Investor Relationsno datano datano data
Eckhard Zanger
Senior Vice President of Corporate Communications & Public Affairsno datano datano data
Chae Kyoo-Joo
Chief of The MTU Aero Engines - Seoulno datano datano data

4.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: MTX's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Josef Mailer
Employee Representative Deputy Chairman of the Supervisory Board5yrs€120.50kno data
Heike Madan
Employee Representative Member of Supervisory Board4.5yrs€85.50kno data
Anita Heimerl
Employee Representative Member of Supervisory Board2.25yrs€65.00kno data
Roberto Armellini
Employee Representative Member of Supervisory Board1.33yrs€42.00kno data
Jürgen Geißinger
Member of Supervisory Board15yrs€85.00kno data
Klaus Eberhardt
Chairman of the Supervisory Board12.75yrs€228.50kno data
Klaus Steffens
Member of Supervisory Boardno data€65.00kno data
Joachim Rauhut
Member of Supervisory Board11.42yrs€105.50kno data
Thomas Dautl
Member of Supervisory Board12.5yrs€65.00kno data
Marion Weissenberger-Eibl
Member of Supervisory Board7.42yrs€65.00kno data
Christine Bortenlänger
Member of Supervisory Board2.5yrs€65.00kno data
Michael Winkelmann
Supervisory Board Member0.75yrno datano data

5.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MTX's board of directors are considered experienced (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 been diluted in the past year, with total shares outstanding growing by 2.5%.


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: €8.240b
  • Shares outstanding: 53.04m
  • 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

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, Nor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:22
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
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.