MTU Aero Engines (MTX) AI Stock Analysis

• Market Cap: €19.13B
• Dividend Yield: 0.62%
• Average Volume (3M): 94.24K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.91
• Revenue Growth: 45.24%
• EPS Growth: N/A
• Country: DE
• Employees: 12,892
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 4.77
• Shares Outstanding: 53,824,490
• 10 Day Avg. Volume: 110,012
• 30 Day Avg. Volume: 94,241
• 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: €413.00
• Price Target Upside: 16.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 62 Neutral
• Price Target: €382.00 ▲(7.42% Upside)

MTU Aero Engines shows strong financial performance with significant improvements in revenue and profitability, which is the most significant factor in the overall score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock might be overvalued, which negatively impacts the score.

Positive Factors

Negative Factors

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 a diversified business model that includes several key streams. The primary source of income comes from the sale of aircraft engines to OEMs, including major players in the aviation industry. Additionally, MTU earns substantial revenue from its aftermarket services, which encompass maintenance, repair, and overhaul (MRO) services for existing engines, providing ongoing support to airlines and operators. Strategic partnerships with other aerospace manufacturers, such as collaborations on engine programs, further enhance revenue opportunities. Furthermore, MTU's involvement in research and development projects, often funded by government contracts and partnerships, contributes to its overall financial performance.

MTU Aero Engines Financial Statement Overview

Summary

MTU Aero Engines has demonstrated strong financial recovery with significant improvements in revenue and profitability. The balance sheet is solid with reasonable leverage and strong equity, though high liabilities need monitoring. Stable cash flow generation supports operations, but enhancing free cash flow could further growth potential.

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	8.22B	7.41B	5.36B	5.33B	4.19B	3.98B
Gross Profit	1.50B	1.23B	125.00M	855.00M	586.00M	492.00M
EBITDA	1.35B	1.22B	196.00M	677.00M	519.00M	382.00M
Net Income	858.00M	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: Negative
• Last Price: 355.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MTX, the sentiment is Negative. The current price of 355.6 is below the 20-day moving average (MA) of 371.25, below the 50-day MA of 376.36, and above the 200-day MA of 340.77, indicating a neutral trend. The MACD of -5.94 indicates Positive momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:MTX.

MTU Aero Engines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRA	74 Outperform	6.82B	17.26	9.33%	―	3.38%	-14.57%
8TRA	72 Outperform	15.21B	6.98	15.72%	5.59%	-2.98%	-14.55%
RHM	66 Neutral	86.65B	101.16	18.45%	0.43%	31.24%	52.48%
HAG	64 Neutral	10.83B	119.69	10.89%	0.53%	18.53%	73.20%
MTX	62 Neutral	€19.13B	22.52	24.74%	0.62%	45.24%	―
OHB	57 Neutral	1.23B	216.25	1.46%	0.93%	1.67%	-91.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%