MTU Aero Engines AG Fundamental Analysis
MTU Aero Engines AG (MTX.DE) shows moderate financial fundamentals with a PE ratio of 16.57, profit margin of 11.63%, and ROE of 24.91%. The company generates $8.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 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 MTX.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakMTX.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMTX.DE trades at attractive valuation levels.
Growth Score
ModerateMTX.DE shows steady but slowing expansion.
Financial Health Score
ExcellentMTX.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateMTX.DE maintains healthy but balanced margins.
Key Financial Metrics
Is MTX.DE Expensive or Cheap?
P/E Ratio
MTX.DE trades at 16.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MTX.DE's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values MTU Aero Engines AG at 4.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.20 times EBITDA. This signals the market has high growth expectations.
How Well Does MTX.DE Make Money?
Net Profit Margin
For every $100 in sales, MTU Aero Engines AG keeps $11.63 as profit after all expenses.
Operating Margin
Core operations generate 12.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.91 in profit for every $100 of shareholder equity.
ROA
MTU Aero Engines AG generates $7.68 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 $843.04M, signaling weaker underlying cash strength.
Free Cash Flow
MTU Aero Engines AG produces free cash flow of $501.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.31 in free cash annually.
FCF Yield
MTX.DE converts 2.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How MTX.DE Stacks Against Its Sector Peers
| Metric | MTX.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.57 | 34.77 | Better (Cheaper) |
| ROE | 24.91% | 1217.00% | Weak |
| Net Margin | 11.63% | -29011.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.44 | 25.58 | Neutral |
| ROA | 7.68% | -1358245.00% (disorted) | Weak |
MTX.DE 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
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure