MTU AERO ENGINES AG (MTX.DE)
DE000A0D9PT0 - Common Stock
Taking everything into account, MTX scores 3 out of 10 in our fundamental rating. MTX was compared to 40 industry peers in the Aerospace & Defense industry. Both the profitability and financial health of MTX have multiple concerns. MTX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MTX was profitable.
In the past year MTX had a positive cash flow from operations.
Of the past 5 years MTX 4 years were profitable.
MTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTX has a Return On Assets of -0.66%. This is amonst the worse of the industry: MTX underperforms 81.58% of its industry peers.
MTX has a worse Return On Equity (-2.36%) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -2.36% | ||
| ROIC | N/A |
ROA(3y)1.75%
ROA(5y)2.63%
ROE(3y)5.21%
ROE(5y)8.31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MTX's Gross Margin of 2.30% is on the low side compared to the rest of the industry. MTX is outperformed by 94.74% of its industry peers.
MTX's Gross Margin has declined in the last couple of years.
MTX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 2.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-50.08%
GM growth 5Y-39.52%
2. Health
2.1 Basic Checks
MTX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MTX has more shares outstanding
The number of shares outstanding for MTX has been increased compared to 5 years ago.
Compared to 1 year ago, MTX has an improved debt to assets ratio.
2.2 Solvency
MTX has an Altman-Z score of 2.02. This is not the best score and indicates that MTX is in the grey zone with still only limited risk for bankruptcy at the moment.
MTX has a Altman-Z score of 2.02. This is comparable to the rest of the industry: MTX outperforms 52.63% of its industry peers.
MTX has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as MTX would need 6.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.09, MTX perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
MTX has a Debt/Equity ratio of 0.55. This is a neutral value indicating MTX is somewhat dependend on debt financing.
MTX has a Debt to Equity ratio of 0.55. This is in the better half of the industry: MTX outperforms 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.02 |
ROIC/WACCN/A
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MTX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, MTX is in line with its industry, outperforming 47.37% of the companies in the same industry.
MTX has a Quick Ratio of 1.18. This is a bad value and indicates that MTX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.86, MTX is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
MTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.43%, which is quite good.
Measured over the past 5 years, MTX shows a small growth in Earnings Per Share. The EPS has been growing by 3.38% on average per year.
Looking at the last year, MTX shows a decrease in Revenue. The Revenue has decreased by -4.95% in the last year.
MTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.27% yearly.
EPS 1Y (TTM)9.43%
EPS 3Y25.34%
EPS 5Y3.38%
EPS Q2Q%26.59%
Revenue 1Y (TTM)-4.95%
Revenue growth 3Y10.48%
Revenue growth 5Y3.27%
Sales Q2Q%12.33%
3.2 Future
Based on estimates for the next years, MTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.64% on average per year.
Based on estimates for the next years, MTX will show a quite strong growth in Revenue. The Revenue will grow by 10.92% on average per year.
EPS Next Y19.51%
EPS Next 2Y16.59%
EPS Next 3Y14.37%
EPS Next 5Y10.64%
Revenue Next Year21.75%
Revenue Next 2Y16.08%
Revenue Next 3Y13.34%
Revenue Next 5Y10.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.81, MTX is valued on the expensive side.
Based on the Price/Earnings ratio, MTX is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
MTX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.52.
Based on the Price/Forward Earnings ratio of 18.64, the valuation of MTX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MTX.
The average S&P500 Price/Forward Earnings ratio is at 21.99. MTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
MTX's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. MTX is more expensive than 86.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTX indicates a slightly more expensive valuation: MTX is more expensive than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.05 | ||
| EV/EBITDA | 189.25 |
4.3 Compensation for Growth
MTX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTX's earnings are expected to grow with 14.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)7.05
EPS Next 2Y16.59%
EPS Next 3Y14.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, MTX is not a good candidate for dividend investing.
MTX's Dividend Yield is slightly below the industry average, which is at 1.52.
With a Dividend Yield of 0.73, MTX pays less dividend than the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of MTX is nicely growing with an annual growth rate of 7.18%!
Dividend Growth(5Y)7.18%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
The earnings of MTX are negative and hence is the payout ratio. MTX will probably not be able to sustain this dividend level.
MTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-156.94%
EPS Next 2Y16.59%
EPS Next 3Y14.37%
MTU AERO ENGINES AG
FRA:MTX (9/16/2024, 5:36:15 PM)
276.4
-2.8 (-1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 18.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.22
PEG (5Y)7.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -2.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 2.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.43%
EPS 3Y25.34%
EPS 5Y
EPS Q2Q%
EPS Next Y19.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.95%
Revenue growth 3Y10.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y