MTU Aero Engines (MTX) AI Stock Analysis

• Market Cap: €20.64B
• Dividend Yield: 0.62%
• Average Volume (3M): 116.41K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.03
• Revenue Growth: 45.24%
• EPS Growth: N/A
• Country: DE
• Employees: 12,892
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 4.46
• Shares Outstanding: 53,824,490
• 10 Day Avg. Volume: 106,201
• 30 Day Avg. Volume: 116,408
• PEG Ratio: -0.04
• Price to Book (P/B): 5.22
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 237.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €422.25
• Price Target Upside: 10.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €433.00 ▲(13.47% Upside)

MTU Aero Engines shows strong financial performance with significant improvements in profitability and a solid balance sheet. Technical indicators suggest a positive trend, although valuation metrics indicate moderate pricing. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates MTU Aero Engines is successfully expanding its market presence and capturing demand in the aerospace sector.

Profitability Improvement

Improved profitability margins reflect effective cost management and operational efficiency, enhancing long-term financial health.

Balance Sheet Strength

A solid balance sheet with reasonable debt levels supports financial stability and provides flexibility for future investments.

Negative Factors

High Liabilities

High liabilities could strain resources and impact MTU's ability to invest in growth opportunities if not managed effectively.

Modest Free Cash Flow Growth

Limited free cash flow growth may restrict MTU's capacity to reinvest in strategic initiatives and enhance competitive positioning.

Dividend Yield

A low dividend yield might not attract income-focused investors, potentially limiting the shareholder base and market appeal.

MTU Aero Engines Business Overview & Revenue Model

Company Description

MTU Aero Engines AG, together with its subsidiaries, develops, manufactures, markets, and maintains commercial and military engines, and aero derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments, Commercial and Military Engine Business; and Commercial Maintenance Business. The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, and business jets; military aircraft engines for fighter aircraft, helicopters, and transport aircraft; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various brush seals. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.

How the Company Makes Money

MTU Aero Engines generates revenue through multiple key streams, primarily focusing on the production and sale of aircraft engines and their components. The company's revenue model includes the sale of new engines to aircraft manufacturers, as well as providing ongoing maintenance, repair, and overhaul (MRO) services for existing engines, which represent a significant portion of their earnings. Additionally, MTU engages in long-term service agreements (LSAs) with airlines and operators, ensuring a steady stream of income from support services over the life cycle of the engines. Strategic partnerships with major aircraft manufacturers, such as Airbus and Boeing, further enhance MTU's revenue potential, as these collaborations often involve co-development projects and shared investments in new technologies. The growing demand for fuel-efficient and environmentally friendly engines also drives MTU's innovation efforts, positioning the company favorably for future growth in the aerospace market.

MTU Aero Engines Financial Statement Overview

Summary

MTU Aero Engines has demonstrated a strong recovery in financial performance with significant improvements in revenue and profitability. The balance sheet is solid with a reasonable debt-to-equity ratio and improved return on equity. However, high liabilities and modest free cash flow growth are potential concerns.

Income Statement

MTU Aero Engines has shown strong revenue growth from 2023 to 2024, with a significant recovery in gross profit margin to 16.6% and a remarkable improvement in net profit margin to 8.7%. The EBITDA margin increased to 16.5%, indicating robust operational performance. The EBIT margin has also improved significantly, reflecting better cost management. These metrics show a strong recovery and growth trajectory, although the previous year had a challenging performance.

Balance Sheet

The company's balance sheet indicates a solid financial position with a debt-to-equity ratio of 0.84, which is reasonable for the industry. The equity ratio stands at 26.9%, showing a strong capital structure. Return on equity improved to 19.1%, demonstrating efficient management of shareholder investments. However, the high total liabilities may pose potential risks if not managed carefully.

Cash Flow

MTU Aero Engines' cash flow statement reveals stable operating cash flow, although free cash flow growth has been modest. The operating cash flow to net income ratio is robust at 1.11, indicating good cash generation from operations. However, the free cash flow to net income ratio is relatively low, suggesting potential limitations in reinvesting in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.19B	7.41B	5.36B	5.33B	4.19B	3.98B
Gross Profit	1.60B	1.23B	125.00M	855.00M	586.00M	492.00M
EBITDA	1.46B	1.22B	196.00M	677.00M	623.00M	382.00M
Net Income	914.00M	633.00M	-102.00M	331.00M	222.00M	139.00M
Balance Sheet
Total Assets	11.78B	12.48B	10.20B	9.23B	8.30B	8.10B
Cash, Cash Equivalents and Short-Term Investments	2.19B	2.60B	1.54B	1.21B	885.00M	811.00M
Total Debt	2.45B	2.83B	1.27B	1.30B	1.31B	1.45B
Total Liabilities	7.87B	9.06B	7.27B	6.12B	5.54B	5.47B
Stockholders Equity	3.84B	3.36B	2.86B	3.03B	2.68B	2.55B
Cash Flow
Free Cash Flow	344.00M	74.00M	365.00M	326.00M	200.00M	130.00M
Operating Cash Flow	778.00M	714.00M	777.00M	728.00M	567.00M	386.00M
Investing Cash Flow	-590.00M	-603.00M	-420.00M	-400.00M	-345.00M	-245.00M
Financing Cash Flow	-53.00M	736.00M	-294.00M	-224.00M	-276.00M	504.00M

MTU Aero Engines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 381.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MTX, the sentiment is Positive. The current price of 381.6 is above the 20-day moving average (MA) of 363.87, above the 50-day MA of 360.13, and above the 200-day MA of 357.25, indicating a bullish trend. The MACD of 7.93 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MTX.

MTU Aero Engines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTX	76 Outperform	€20.64B	24.23	24.74%	0.62%	45.24%	―
8TRA	68 Neutral	€15.76B	8.86	10.20%	5.67%	-7.11%	-30.83%
HAG	68 Neutral	€10.55B	85.04	15.96%	0.68%	14.89%	619.09%
RHM	63 Neutral	€87.17B	100.03	21.48%	0.53%	24.61%	45.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OHB	59 Neutral	€2.66B	433.29	1.49%	0.51%	10.80%	-91.79%
FRA	56 Neutral	€6.85B	14.53	9.56%	―	0.11%	2.58%