MTU Aero Engines AG
MTU Aero Engines AG Fundamental Analysis
MTU Aero Engines AG (MTUAF) shows strong financial fundamentals with a PE ratio of 21.75, profit margin of 12.33%, and ROE of 27.26%. The company generates $7.9B in annual revenue with strong year-over-year growth of 38.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MTUAF's fundamental strength across five key dimensions:
Efficiency Score
WeakMTUAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMTUAF trades at attractive valuation levels.
Growth Score
ModerateMTUAF shows steady but slowing expansion.
Financial Health Score
ExcellentMTUAF maintains a strong and stable balance sheet.
Profitability Score
ModerateMTUAF maintains healthy but balanced margins.
Key Financial Metrics
Is MTUAF Expensive or Cheap?
P/E Ratio
MTUAF trades at 21.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MTUAF's PEG of 0.53 indicates potential undervaluation.
Price to Book
The market values MTU Aero Engines AG at 5.56 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.73 times EBITDA. This signals the market has high growth expectations.
How Well Does MTUAF Make Money?
Net Profit Margin
For every $100 in sales, MTU Aero Engines AG keeps $12.33 as profit after all expenses.
Operating Margin
Core operations generate 10.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.26 in profit for every $100 of shareholder equity.
ROA
MTU Aero Engines AG generates $8.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MTU Aero Engines AG generates limited operating cash flow of $353.35M, signaling weaker underlying cash strength.
Free Cash Flow
MTU Aero Engines AG generates weak or negative free cash flow of $36.62M, restricting financial flexibility.
FCF Per Share
Each share generates $0.68 in free cash annually.
FCF Yield
MTUAF converts 0.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How MTUAF Stacks Against Its Sector Peers
| Metric | MTUAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.75 | 26.49 | Better (Cheaper) |
| ROE | 27.26% | 1307.00% | Weak |
| Net Margin | 12.33% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 10.48 | Neutral |
| ROA | 8.34% | -1549792.00% (disorted) | Weak |
MTUAF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MTU Aero Engines AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.10%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
25.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-18.45%
Industry Style: Cyclical, Value, Infrastructure
Declining