Münchener Rückversicherungs-Gesellschaft in München (XTRA:MUV2) - Share price, News & Analysis

Q: What is the Fair Price of MUV2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MUV2 (€235.5) is trading below our estimate of [[fair value]] (€822.34)

MUV2 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	2/6
Dividends	5/6

MUV2 Stock Overview

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide.

Rewards

Trading at 71.4% below our estimate of its fair value

Earnings are forecast to grow 11.92% per year

Earnings grew by 23.9% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 4.67% is not well covered by earnings

Münchener Rückversicherungs-Gesellschaft in München Competitors

Hannover Rück

XTRA:HNR1

€17.8b

Allianz

XTRA:ALV

€71.6b

Talanx

XTRA:TLX

€9.0b

Swiss Re

SWX:SREN

CHF21.6b

Price History & Performance

Summary of all time highs, changes and price drops for Münchener Rückversicherungs-Gesellschaft in München
Historical stock prices
Current Share Price	€235.50
52 Week High	€282.25
52 Week Low	€205.15
Beta	0.99
1 Month Change	6.71%
3 Month Change	5.70%
1 Year Change	-7.90%
3 Year Change	6.80%
5 Year Change	32.86%
Change since IPO	292.96%

Recent News & Updates

May 16

Here's Why We Think Münchener Rückversicherungs-Gesellschaft in München (ETR:MUV2) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	MUV2	DE Insurance	DE Market
7D	0.2%	1.3%	2.0%
1Y	-7.9%	-7.6%	-19.6%

Return vs Industry: MUV2 matched the German Insurance industry which returned -7.6% over the past year.

Return vs Market: MUV2 exceeded the German Market which returned -19.6% over the past year.

Price Volatility

Is MUV2's price volatile compared to industry and market?
MUV2 volatility
MUV2 Average Weekly Movement	3.5%
Insurance Industry Average Movement	3.6%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.3%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: MUV2 is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MUV2's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1880	40,177	Joachim Wenning	https://www.munichre.com

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. The company operates through five segments: Life and Health Reinsurance; Property-Casualty Reinsurance; ERGO Life and Health Germany; ERGO Property-Casualty Germany; and ERGO International. It offers life and health reinsurance solutions, such as financial market risks, data analytics, claims handling and underwriting, medical research, health market, capital management, and digital underwriting and analytics, as well as MIRA digital suite; and property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, remote inspection, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, as well as NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, cert2go, consulting for product development, prospective structured reinsurance, and Vahana AI for motor claims.

Münchener Rückversicherungs-Gesellschaft in München Fundamentals Summary

How do Münchener Rückversicherungs-Gesellschaft in München's earnings and revenue compare to its market cap?
MUV2 fundamental statistics
Market Cap	€32.77b
Earnings (TTM)	€2.61b
Revenue (TTM)	€64.07b

12.6x

P/E Ratio

0.5x

P/S Ratio

Is MUV2 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MUV2 income statement (TTM)
Revenue	€64.07b
Cost of Revenue	€45.36b
Gross Profit	€18.71b
Other Expenses	€16.10b
Earnings	€2.61b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)	18.76
Gross Margin	29.20%
Net Profit Margin	4.08%
Debt/Equity Ratio	21.5%

How did MUV2 perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

59%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MUV2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MUV2?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MUV2. This is calculated by dividing MUV2's market cap by their current preferred multiple.
What is MUV2's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€32.77b

MUV2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	10.2x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does MUV2's PE Ratio compare to its peers?

MUV2 PE Ratio vs Peers

The above table shows the PE ratio for MUV2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.6x
HNR1 Hannover Rück	14.7x	12.7%	€17.8b
ALV Allianz	17.7x	20.3%	€71.6b
TLX Talanx	8.7x	13.3%	€9.0b
SREN Swiss Re	41.4x	30.4%	CHF21.6b
MUV2 Münchener Rückversicherungs-Gesellschaft in München	12.6x	11.9%	€32.8b

Price-To-Earnings vs Peers: MUV2 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does MUV2's PE Ratio compare vs other companies in the European Insurance Industry?

Price-To-Earnings vs Industry: MUV2 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the German Insurance industry average (13.7x)

Price to Earnings Ratio vs Fair Ratio

What is MUV2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MUV2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.6x
Fair PE Ratio	15.9x

Price-To-Earnings vs Fair Ratio: MUV2 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).

Share Price vs Fair Value

What is the Fair Price of MUV2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MUV2 (€235.5) is trading below our estimate of fair value (€822.34)

Significantly Below Fair Value: MUV2 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Future Growth

How is Münchener Rückversicherungs-Gesellschaft in München forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MUV2's forecast earnings growth (11.9% per year) is above the savings rate (-0.01%).

Earnings vs Market: MUV2's earnings (11.9% per year) are forecast to grow faster than the German market (9.6% per year).

High Growth Earnings: MUV2's earnings are forecast to grow, but not significantly.

Revenue vs Market: MUV2's revenue (3.7% per year) is forecast to grow slower than the German market (4.6% per year).

High Growth Revenue: MUV2's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MUV2's Return on Equity is forecast to be low in 3 years time (12.3%).

Discover growth companies

Past Performance

How has Münchener Rückversicherungs-Gesellschaft in München performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MUV2 has a high level of non-cash earnings.

Growing Profit Margin: MUV2's current net profit margins (4.1%) are higher than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: MUV2's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: MUV2's earnings growth over the past year (23.9%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: MUV2 earnings growth over the past year (23.9%) exceeded the Insurance industry -15.3%.

Return on Equity

High ROE: MUV2's Return on Equity (11.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Münchener Rückversicherungs-Gesellschaft in München's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MUV2's short term assets (€43.9B) do not cover its short term liabilities (€108.1B).

Long Term Liabilities: MUV2's short term assets (€43.9B) do not cover its long term liabilities (€168.4B).

Debt to Equity History and Analysis

Debt Level: MUV2 has more cash than its total debt.

Reducing Debt: MUV2's debt to equity ratio has increased from 10.2% to 21.5% over the past 5 years.

Debt Coverage: MUV2's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MUV2's interest payments on its debt are well covered by EBIT (8.8x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Münchener Rückversicherungs-Gesellschaft in München current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MUV2's dividend (4.67%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: MUV2's dividend (4.67%) is in the top 25% of dividend payers in the German market (4.48%)

Stability and Growth of Payments

Stable Dividend: MUV2's dividends per share have been stable in the past 10 years.

Growing Dividend: MUV2's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59%), MUV2's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: MUV2 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

6.9yrs

Average management tenure

CEO

Joachim Wenning (57 yo)

13.58yrs

Tenure

€5,875,750

Compensation

Dr. oec. publ. Joachim Wenning joined Münchener Rückversicherungs-Gesellschaft AG (“Munich Re”) in 1991, where he worked until early 1997 as a treaty specialist with technical responsibility for life reins...

CEO Compensation Analysis

Compensation vs Market: Joachim's total compensation ($USD5.98M) is about average for companies of similar size in the German market ($USD5.52M).

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

Leadership Team

Experienced Management: MUV2's management team is seasoned and experienced (6.9 years average tenure).

Board Members

Experienced Board: MUV2's board of directors are considered experienced (8.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31