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MTX

MTU Aero EnginesXTRA:MTX Stock Report

Last Price

€198.10

Market Cap

€10.6b

7D

2.8%

1Y

-7.1%

Updated

17 Jan, 2022

Data

Company Financials +
MTX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends3/6

MTX Stock Overview

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.

MTU Aero Engines Competitors

Atlas Copco

OM:ATCO A

kr679.3b

Safran

ENXTPA:SAF

€48.0b

Generac Holdings

NYSE:GNRC

US$19.3b

Rolls-Royce Holdings

LSE:RR.

UK£10.5b

Price History & Performance

Summary of all time highs, changes and price drops for MTU Aero Engines
Historical stock prices
Current Share Price€198.10
52 Week High€224.90
52 Week Low€161.55
Beta1.63
1 Month Change16.94%
3 Month Change9.27%
1 Year Change-7.13%
3 Year Change8.67%
5 Year Change73.01%
Change since IPO838.42%

Recent News & Updates

Dec 09
Capital Allocation Trends At MTU Aero Engines (ETR:MTX) Aren't Ideal

Capital Allocation Trends At MTU Aero Engines (ETR:MTX) Aren't Ideal

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Nov 06
What Is MTU Aero Engines AG's (ETR:MTX) Share Price Doing?

What Is MTU Aero Engines AG's (ETR:MTX) Share Price Doing?

Let's talk about the popular MTU Aero Engines AG ( ETR:MTX ). The company's shares saw a decent share price growth in...

Sep 23
Is MTU Aero Engines (ETR:MTX) A Risky Investment?

Is MTU Aero Engines (ETR:MTX) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Aug 09
MTU Aero Engines (ETR:MTX) Will Be Hoping To Turn Its Returns On Capital Around

MTU Aero Engines (ETR:MTX) Will Be Hoping To Turn Its Returns On Capital Around

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

MTXDE Aerospace & DefenseDE Market
7D2.8%2.2%0.7%
1Y-7.1%-8.5%11.6%

Return vs Industry: MTX exceeded the German Aerospace & Defense industry which returned -8.5% over the past year.

Return vs Market: MTX underperformed the German Market which returned 12.1% over the past year.

Price Volatility

Is MTX's price volatile compared to industry and market?
MTX volatility
MTX Average Weekly Movement5.4%
Aerospace & Defense Industry Average Movement5.4%
Market Average Movement5.0%
10% most volatile stocks in DE Market9.8%
10% least volatile stocks in DE Market2.6%

Stable Share Price: MTX is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MTX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191310,210Reiner Winklerhttps://www.mtu.de

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.

MTU Aero Engines Fundamentals Summary

How do MTU Aero Engines's earnings and revenue compare to its market cap?
MTX fundamental statistics
Market Cap€10.56b
Earnings (TTM)€118.00m
Revenue (TTM)€3.93b

89.5x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTX income statement (TTM)
Revenue€3.93b
Cost of Revenue€3.34b
Gross Profit€595.00m
Expenses€477.00m
Earnings€118.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)2.21
Gross Margin15.13%
Net Profit Margin3.00%
Debt/Equity Ratio47.5%

How did MTX perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

56%

Payout Ratio

Valuation

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

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTX (€198.1) is trading below our estimate of fair value (€321.28)

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


Price To Earnings Ratio

PE vs Industry: MTX is poor value based on its PE Ratio (89.5x) compared to the European Aerospace & Defense industry average (22.8x).

PE vs Market: MTX is poor value based on its PE Ratio (89.5x) compared to the German market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTX is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: MTX is overvalued based on its PB Ratio (4.1x) compared to the DE Aerospace & Defense industry average (3.9x).


Future Growth

How is MTU Aero Engines forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTX's forecast earnings growth (23.9% per year) is above the savings rate (-0.01%).

Earnings vs Market: MTX's earnings (23.9% per year) are forecast to grow faster than the German market (10.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTX's revenue (10.7% per year) is forecast to grow faster than the German market (5.6% per year).

High Growth Revenue: MTX's revenue (10.7% 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 (15.6%).


Past Performance

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

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTX has a large one-off loss of €151.0M impacting its June 30 2021 financial results.

Growing Profit Margin: MTX's current net profit margins (3%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: MTX's earnings have declined by 5.9% 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 (-68.6%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (3.7%).


Return on Equity

High ROE: MTX's Return on Equity (4.7%) is considered low.


Financial Health

How is MTU Aero Engines's financial position?


Financial Position Analysis

Short Term Liabilities: MTX's short term assets (€4.2B) exceed its short term liabilities (€3.0B).

Long Term Liabilities: MTX's short term assets (€4.2B) exceed its long term liabilities (€2.4B).


Debt to Equity History and Analysis

Debt Level: MTX's net debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: MTX's debt to equity ratio has reduced from 105.3% to 47.5% over the past 5 years.

Debt Coverage: MTX's debt is well covered by operating cash flow (34.7%).

Interest Coverage: MTX's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTX's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.02%).

High Dividend: MTX's dividend (0.63%) is low compared to the top 25% of dividend payers in the German market (3.34%).


Stability and Growth of Payments

Stable Dividend: MTX's dividend payments have been volatile 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 reasonable payout ratio (56.3%), MTX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTX's dividends in 3 years are forecast to be well covered by earnings (37.3% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Reiner Winkler (60 yo)

21yrs

Tenure

€2,782,506

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 ($USD3.17M) is below average for companies of similar size in the German market ($USD5.11M).

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


Leadership Team

Experienced Management: MTX's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: MTX's board of directors are considered experienced (5.8 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 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
  • Implied Market Cap: €10.562b
  • Shares outstanding: 53.32m
  • Website: https://www.mtu.de

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:01
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.