MTU Aero Engines (MTX) AI Stock Analysis

• Market Cap: €20.33B
• Dividend Yield: 0.58%
• Average Volume (3M): 130.01K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 0.87
• Revenue Growth: 38.19%
• EPS Growth: N/A
• Country: DE
• Employees: 12,892
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 3.99
• Shares Outstanding: 53,824,490
• 10 Day Avg. Volume: 106,119
• 30 Day Avg. Volume: 130,013
• PEG Ratio: 0.09
• Price to Book (P/B): 6.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 179.92
• 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: €397.88
• Price Target Upside: 4.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: €393.00 ▲(3.48%Upside)

MTU Aero Engines shows strong financial performance, leading to a solid overall score. However, technical analysis indicates potential overbought conditions, and the stock's valuation suggests it may be relatively expensive, impacting the overall score.

Positive Factors

Aftermarket Performance

Aftermarket strength is driving 21% EBIT growth for MTU Aero Engines.

Free Cash Flow

Analyst expects strong free cash flow performance.

Negative Factors

Aircraft Storage

The number of aircraft on ground for the A320 is now around 655 aircraft, indicating a higher level of storage than desired.

Foreign Exchange Concerns

FX remains a key point of concern for investors.

MTU Aero Engines Business Overview & Revenue Model

Company Description

MTU Aero Engines AG (MTX) is a leading German aerospace company specializing in the development, manufacture, and support of commercial and military aircraft engines. The company operates primarily in the aviation sector, offering a wide range of products and services including engine components, maintenance, repair, and overhaul (MRO) services. MTU Aero Engines collaborates with major engine manufacturers and aircraft operators globally, contributing to the advancement of propulsion technologies and enhancing aircraft performance.

How the Company Makes Money

MTU Aero Engines generates revenue through several key streams. The primary source of income is the sale of engine components and complete propulsion systems for commercial and military aircraft, where it partners with leading original equipment manufacturers (OEMs) like Pratt & Whitney and General Electric. Additionally, the company earns significant revenue from its Maintenance, Repair, and Overhaul (MRO) services, which provide ongoing support and maintenance for a variety of engine types, ensuring they operate efficiently and comply with safety regulations. These MRO services are essential for airline operators to extend the lifecycle of their engines and maintain optimal performance. MTU also engages in long-term service agreements that provide a stable revenue stream over time. Strategic partnerships and joint ventures with other aerospace companies further enhance MTU's market reach and technological capabilities, contributing to its financial success.

MTU Aero Engines Financial Statement Overview

Summary

MTU Aero Engines has demonstrated a strong financial recovery with significant improvements in revenue and profitability. The balance sheet is solid, though high liabilities require ongoing attention. Cash flow generation is stable, but modest free cash flow growth suggests room for enhancement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.41B	5.36B	5.33B	4.19B	3.98B
Gross Profit	1.23B	125.00M	855.00M	586.00M	492.00M
EBITDA	1.22B	196.00M	677.00M	519.00M	382.00M
Net Income	633.00M	-102.00M	331.00M	222.00M	139.00M
Balance Sheet
Total Assets	12.48B	10.20B	9.23B	8.30B	8.10B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.54B	1.21B	885.00M	811.00M
Total Debt	2.43B	1.27B	1.30B	1.31B	1.45B
Total Liabilities	9.06B	7.27B	6.12B	5.54B	5.47B
Stockholders Equity	3.36B	2.86B	3.03B	2.68B	2.55B
Cash Flow
Free Cash Flow	74.00M	365.00M	326.00M	200.00M	130.00M
Operating Cash Flow	714.00M	777.00M	728.00M	567.00M	386.00M
Investing Cash Flow	-603.00M	-420.00M	-400.00M	-345.00M	-245.00M
Financing Cash Flow	736.00M	-294.00M	-224.00M	-276.00M	504.00M

MTU Aero Engines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 379.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 379.8 is above the 20-day moving average (MA) of 375.67, above the 50-day MA of 358.25, and above the 200-day MA of 325.18, indicating a bullish trend. The MACD of 7.97 indicates Positive momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 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
HAG	79 Outperform	€11.67B	127.92	10.95%	0.49%	25.46%	41.26%
FRA	74 Outperform	€5.93B	14.23	9.15%	―	6.79%	-3.02%
8TRA	74 Outperform	€15.00B	5.96	14.10%	5.67%	-2.53%	-4.91%
MTX	70 Outperform	€20.33B	32.11	20.33%	0.58%	38.19%	―
RHM	69 Neutral	€83.67B	105.55	21.45%	0.45%	41.65%	42.12%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
OHB	62 Neutral	€1.39B	364,000.00	<0.01%	0.85%	-2.53%	-99.99%