MUENCHENER RUECKVER AG-REG (MUV2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MUV2 - DE0008430026 - Common Stock
510.4 EUR
+2.8 (+0.55%)
We assign a fundamental rating of 5 out of 10 to MUV2. MUV2 was compared to 48 industry peers in the Insurance industry. Both the profitability and the financial health of MUV2 get a neutral evaluation. Nothing too spectacular is happening here. MUV2 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year MUV2 was profitable.
- MUV2 had a positive operating cash flow in the past year.
- Each year in the past 5 years MUV2 has been profitable.
- In the past 5 years MUV2 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of MUV2 (2.06%) is better than 66.67% of its industry peers.
- MUV2 has a Return On Equity of 18.59%. This is in the better half of the industry: MUV2 outperforms 68.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.27%, MUV2 is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MUV2 is in line with the industry average of 2.74%.
- The last Return On Invested Capital (2.27%) for MUV2 is above the 3 year average (1.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 18.59% | ||
| ROIC | 2.27% |
ROA(3y)1.88%
ROA(5y)1.4%
ROE(3y)17.52%
ROE(5y)13.23%
ROIC(3y)1.93%
ROIC(5y)1.43%
1.3 Margins
- MUV2 has a Profit Margin of 9.15%. This is comparable to the rest of the industry: MUV2 outperforms 52.08% of its industry peers.
- MUV2's Profit Margin has improved in the last couple of years.
- MUV2 has a Operating Margin of 12.77%. This is in the better half of the industry: MUV2 outperforms 60.42% of its industry peers.
- MUV2's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.77% | ||
| PM (TTM) | 9.15% | ||
| GM | N/A |
OM growth 3Y37.9%
OM growth 5Y19.51%
PM growth 3Y29.8%
PM growth 5Y16.55%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MUV2 is destroying value.
- Compared to 1 year ago, MUV2 has less shares outstanding
- MUV2 has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MUV2 has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of MUV2 is 1.53, which is an excellent value as it means it would take MUV2, only 1.53 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MUV2 (1.53) is better than 66.67% of its industry peers.
- MUV2 has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of MUV2 (0.23) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.32
WACC7.06%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- MUV2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.88%, which is quite good.
- The Earnings Per Share has been growing by 17.67% on average over the past years. This is quite good.
- Looking at the last year, MUV2 shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
- The Revenue has been decreasing by -0.60% on average over the past years.
EPS 1Y (TTM)10.88%
EPS 3Y26.82%
EPS 5Y17.67%
EPS Q2Q%120.51%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y-3.95%
Revenue growth 5Y-0.6%
Sales Q2Q%-22.27%
3.2 Future
- Based on estimates for the next years, MUV2 will show a small growth in Earnings Per Share. The EPS will grow by 4.73% on average per year.
- MUV2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y16.24%
EPS Next 2Y10.82%
EPS Next 3Y9.09%
EPS Next 5Y4.73%
Revenue Next Year-3.8%
Revenue Next 2Y-0.54%
Revenue Next 3Y1.1%
Revenue Next 5Y5.72%
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 decreasing.
- 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 10.79, the valuation of MUV2 can be described as very reasonable.
- MUV2's Price/Earnings ratio is a bit cheaper when compared to the industry. MUV2 is cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, MUV2 is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.74, the valuation of MUV2 can be described as very reasonable.
- 66.67% of the companies in the same industry are more expensive than MUV2, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of MUV2 to the average of the S&P500 Index (25.83), we can say MUV2 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MUV2 indicates a somewhat cheap valuation: MUV2 is cheaper than 75.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MUV2 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of MUV2 may justify a higher PE ratio.
PEG (NY)0.66
PEG (5Y)0.61
EPS Next 2Y10.82%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
- MUV2 has a Yearly Dividend Yield of 3.92%. Purely for dividend investing, there may be better candidates out there.
- MUV2's Dividend Yield is slightly below the industry average, which is at 4.17.
- Compared to an average S&P500 Dividend Yield of 1.82, MUV2 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
- The dividend of MUV2 is nicely growing with an annual growth rate of 10.15%!
Dividend Growth(5Y)10.15%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
- MUV2 pays out 45.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
- MUV2's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.96%
EPS Next 2Y10.82%
EPS Next 3Y9.09%
MUENCHENER RUECKVER AG-REG / MUV2.DE FAQ
What is the fundamental rating for MUV2 stock?
ChartMill assigns a fundamental rating of 5 / 10 to MUV2.DE.
What is the valuation status of MUENCHENER RUECKVER AG-REG (MUV2.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to MUENCHENER RUECKVER AG-REG (MUV2.DE). This can be considered as Fairly Valued.
What is the profitability of MUV2 stock?
MUENCHENER RUECKVER AG-REG (MUV2.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of MUENCHENER RUECKVER AG-REG (MUV2.DE) stock?
The Price/Earnings (PE) ratio for MUENCHENER RUECKVER AG-REG (MUV2.DE) is 10.79 and the Price/Book (PB) ratio is 2.18.
How financially healthy is MUENCHENER RUECKVER AG-REG?
The financial health rating of MUENCHENER RUECKVER AG-REG (MUV2.DE) is 4 / 10.