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.

Rewards

Trading at 9.7% below its fair value

Earnings are forecast to grow 10.04% per year

Earnings grew by 17.8% over the past year

Pays a reliable dividend of 1.05%

Risk Analysis

No risks detected for MTX from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


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

6.3%

MTX

2.4%

DE Aerospace & Defense

0.07%

DE Market


1 Year Return

57.5%

MTX

29.4%

DE Aerospace & Defense

14.8%

DE Market

Return vs Industry: MTX exceeded the German Aerospace & Defense industry which returned 28.4% over the past year.

Return vs Market: MTX exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

MTXIndustryMarket
7 Day6.3%2.4%0.07%
30 Day13.1%5.0%1.9%
90 Day18.1%10.3%7.1%
1 Year59.7%57.5%31.8%29.4%18.4%14.8%
3 Year162.8%151.1%72.4%61.6%17.4%7.0%
5 Year263.7%235.4%123.2%96.1%27.9%10.4%

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?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTX (€271.4) is trading below our estimate of fair value (€300.68)

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 (30.2x) compared to the Aerospace & Defense industry average (27.3x).

PE vs Market: MTX is poor value based on its PE Ratio (30.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: MTX is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: MTX is overvalued based on its PB Ratio (6.8x) compared to the XE Aerospace & Defense industry average (2.3x).


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?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTX's forecast earnings growth (10% per year) is above the savings rate (-0.4%).

Earnings vs Market: MTX's earnings (10% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: MTX's revenue (6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: MTX's revenue (6% 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 high in 3 years time (20.7%)


Next Steps

Past Performance

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

19.1%

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%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: MTX's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: MTX's earnings growth over the past year (17.8%) is below its 5-year average (19.1% per year).

Earnings vs Industry: MTX earnings growth over the past year (17.8%) exceeded the Aerospace & Defense industry 15.2%.


Return on Equity

High ROE: MTX's Return on Equity (22.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MTU Aero Engines's financial position?


Financial Position Analysis

Short Term Liabilities: MTX's short term assets (€3.5B) exceed its short term liabilities (€3.1B).

Long Term Liabilities: MTX's short term assets (€3.5B) exceed its long term liabilities (€2.3B).


Debt to Equity History and Analysis

Debt Level: MTX is debt free.

Reducing Debt: MTX has no debt compared to 5 years ago when its debt to equity ratio was 61.2%.

Debt Coverage: MTX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MTX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: MTX's debt is not covered by short term assets (assets are -25.5x debt).


Next Steps

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.5%industryaverage1.6%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: MTX's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: MTX's dividend (1.05%) is low compared to the top 25% of dividend payers in the German market (3.53%).


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 (31.7%), 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 (37.9% payout ratio).


Next Steps

Management

What is the CEO of MTU Aero Engines's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Reiner Winkler (58yo)

6yrs

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 ($USD3.14M) is below average for companies of similar size in the German market ($USD4.52M).

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


Management Age and Tenure

4.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MTX's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MTX's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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.


Management Team

  • Reiner Winkler (58yo)

    CEO & Member of the Executive Board

    • Tenure: 6yrs
    • Compensation: €2.83m
  • Eckhard Zanger

    Senior Vice President of Corporate Communications & Public Affairs

    • Michael Schreyögg (53yo)

      Chief Program Officer & Member of the Executive Board

      • Tenure: 6.5yrs
      • Compensation: €1.48m
    • Chae Kyoo-Joo

      Chief of The MTU Aero Engines - Seoul

      • Peter Kameritsch (50yo)

        CFO, Chief Information Officer & Member of the Executive Board

        • Tenure: 2yrs
        • Compensation: €2.84m
      • Lars Wagner (44yo)

        COO & Member of the Executive Board

        • Tenure: 2yrs
        • Compensation: €1.30m
      • Thomas Franz

        Vice President of Investor Relations


        Board Members

        • Jürgen Geißinger (60yo)

          Member of Supervisory Board

          • Tenure: 14.3yrs
          • Compensation: €88.00k
        • Klaus Eberhardt (71yo)

          Chairman of the Supervisory Board

          • Tenure: 12yrs
          • Compensation: €227.00k
        • Klaus Steffens (69yo)

          Member of Supervisory Board

          • Compensation: €65.00k
        • Joachim Rauhut (65yo)

          Member of Supervisory Board

          • Tenure: 10.7yrs
          • Compensation: €104.00k
        • Josef Mailer

          Deputy Chairman of the Supervisory Board

          • Tenure: 4.3yrs
          • Compensation: €122.00k
        • Thomas Dautl

          Member of Supervisory Board

          • Tenure: 11.8yrs
          • Compensation: €65.00k
        • Marion Weissenberger-Eibl (53yo)

          Member of Supervisory Board

          • Tenure: 6.7yrs
          • Compensation: €65.00k
        • Christine Bortenlänger (53yo)

          Member of Supervisory Board

          • Tenure: 1.8yrs
          • Compensation: €48.11k
        • Heike Madan

          Member of Supervisory Board

          • Tenure: 3.8yrs
          • Compensation: €84.00k
        • Angelo Gross

          Member of Supervisory Board

          • Tenure: 1.8yrs
          • Compensation: €48.11k

        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: €15.105b
        • 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
        MTXSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 2005
        MTXDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 2005
        0FC9LSE (London Stock Exchange)YesRegistered SharesGBEURJun 2005
        MTUA.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJun 2005
        MTXETLX (Eurotlx)YesRegistered SharesITEURJun 2005
        MTXDBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJun 2005
        MTXXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJun 2005
        MTXWBAG (Wiener Boerse AG)YesRegistered SharesATEURJun 2005
        MTX NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJun 2005
        MTUA.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008
        MTX1BST (Boerse-Stuttgart)UNSPONSORD ADRDEEUROct 2008
        MTXCDB (Deutsche Boerse AG)NPV (NEW SHARES)DEEURDec 2019

        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 develops, manufactures, assembles, and delivers commercial engines, including long haul airliners, short-and medium-haul aircraft, business jets, and helicopters, as well as commercial aircraft engines, such as wide body, narrow body, regional, and business jets; military engines, such as fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls military engines, aircraft engines, and industrial gas turbines, as well as provides engine modules and parts repair, and related services. In addition, the company offers customized solutions from its range of services under MTU Aero Solutions brand; designs, develops, manufactures, and markets various brush seals; and provides training programs for non-destructive testing. Further, it provides on-site, engine lease, fleet management, module and part repair, asset and material management, and customer support services; and technical support, logistic support, and facilities services, as well as accessories. 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 Analysis2020/01/18 21:00
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.