MTU Aero Engines AG
MTU Aero Engines AG Fundamental Analysis
MTU Aero Engines AG (MTUAY) shows strong financial fundamentals with a PE ratio of 16.88, profit margin of 12.32%, and ROE of 29.76%. The company generates $8.7B in annual revenue with strong year-over-year growth of 18.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 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 MTUAY's fundamental strength across five key dimensions:
Efficiency Score
WeakMTUAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateMTUAY shows balanced valuation metrics.
Growth Score
ExcellentMTUAY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMTUAY maintains a strong and stable balance sheet.
Profitability Score
ModerateMTUAY maintains healthy but balanced margins.
Key Financial Metrics
Is MTUAY Expensive or Cheap?
P/E Ratio
MTUAY trades at 16.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MTUAY's PEG of 2.16 indicates potential overvaluation.
Price to Book
The market values MTU Aero Engines AG at 4.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.74 times EBITDA. This signals the market has high growth expectations.
How Well Does MTUAY Make Money?
Net Profit Margin
For every $100 in sales, MTU Aero Engines AG keeps $12.32 as profit after all expenses.
Operating Margin
Core operations generate 12.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.76 in profit for every $100 of shareholder equity.
ROA
MTU Aero Engines AG generates $9.10 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 $456.32M, signaling weaker underlying cash strength.
Free Cash Flow
MTU Aero Engines AG produces free cash flow of $279.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.59 in free cash annually.
FCF Yield
MTUAY converts 1.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.08
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
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How MTUAY Stacks Against Its Sector Peers
| Metric | MTUAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.88 | 25.84 | Better (Cheaper) |
| ROE | 29.76% | 1279.00% | Weak |
| Net Margin | 12.32% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 10.62 | Neutral |
| ROA | 9.10% | -1537441.00% (disorted) | Weak |
MTUAY 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
114.64%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
620.45%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
114.01%
Industry Style: Cyclical, Value, Infrastructure
High Growth