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Munich Reinsurance Company (DE:MUV2)
XETRA:MUV2

Munich Reinsurance (MUV2) AI Stock Analysis

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Munich Reinsurance

(XETRA:MUV2)

Rating:73Outperform
Price Target:
€637.00
▲(10.36%Upside)
The overall stock score of Munich Reinsurance is driven by its strong financial performance, which highlights robust profitability and effective capital management. The valuation is attractive with a reasonable P/E ratio and dividend yield. Technical analysis offers a mixed view, with some indicators pointing to stability and others suggesting caution.

Munich Reinsurance (MUV2) vs. iShares MSCI Germany ETF (EWG)

Munich Reinsurance Business Overview & Revenue Model

Company DescriptionMünchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. The company operates through five segments: Life and Health Reinsurance; Property-Casualty Reinsurance; ERGO Life and Health Germany; ERGO Property-Casualty Germany; and ERGO International. It offers life and health reinsurance solutions, such as financial market risks, data analytics, claims handling and underwriting, medical research, health market, capital management, and digital underwriting and analytics, as well as MIRA digital suite; and property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, remote inspection, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, as well as NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, cert2go, consulting for product development, prospective structured reinsurance, and Vahana AI for motor claims. The company also provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, bioenergy plant performance insurance, solar energy insurance, wind farm insurance, mining insurance, construction projects covers and services, aviation insurance, power and utilities, oil and gas companies insurance, industrial cyber insurance, risk suite, data and location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, liquidation damage cover, and natural catastrophes solutions. In addition, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name. The company was founded in 1880 and is based in Munich, Germany.
How the Company Makes MoneyMunich Re generates revenue primarily through its reinsurance business, where it underwrites insurance policies for other insurance companies, effectively spreading risk and providing financial protection. The company earns premiums from these reinsurance contracts, which form a significant portion of its income. Another revenue stream comes from its primary insurance segment, operated through its subsidiary ERGO Group, which sells a variety of insurance products directly to consumers. Additionally, Munich Re invests the premiums it collects in a diverse portfolio of assets, generating investment income that contributes significantly to its earnings. The company also engages in strategic partnerships and collaborations with other financial institutions and insurance entities to enhance its market reach and product offerings, further supporting its revenue streams.

Munich Reinsurance Financial Statement Overview

Summary
Munich Reinsurance exhibits strong financial performance with robust revenue growth and profitability metrics. The balance sheet is stable with a low debt-to-equity ratio and a strong equity base. Cash flow is positive but shows variability, which requires monitoring.
Income Statement
85
Very Positive
Munich Reinsurance exhibits strong financial performance with a consistent increase in net income and EBIT over the years. The gross profit margin is healthy due to the nature of the reinsurance industry. Recent revenue growth from 2023 to 2024 is 4.76%, and the net profit margin has improved, reflecting operational efficiencies. However, EBITDA margin data for 2024 is missing.
Balance Sheet
75
Positive
The balance sheet shows a stable financial position with a reasonable debt-to-equity ratio of 0.19 in 2024. The equity ratio is solid at 11.39%, indicating a strong equity base against total assets. Return on equity has improved to 17.41% in 2024, demonstrating effective use of shareholder funds. However, cash reserves have decreased from previous years, which might impact liquidity.
Cash Flow
70
Positive
Cash flow analysis shows a positive trend with a significant free cash flow increase of 28.68% from 2023 to 2024, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.55, suggesting good conversion of income into cash. However, the cash flow is subject to fluctuations in the investing and financing activities.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
61.40B58.61B68.45B63.86B58.64B
Gross Profit
61.40B64.73B68.45B63.86B58.64B
EBIT
7.97B5.70B4.30B2.41B1.54B
EBITDA
7.97B5.52B7.06B3.81B1.98B
Net Income Common Stockholders
5.68B4.61B3.43B2.93B1.21B
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.12B8.57B149.71B171.24B164.44B
Total Assets
286.51B273.79B298.57B312.40B297.95B
Total Debt
6.32B4.71B6.45B6.80B6.74B
Net Debt
205.00M-3.86B-2.87B-1.98B-2.31B
Total Liabilities
253.77B244.02B277.37B281.46B267.95B
Stockholders Equity
32.64B29.65B21.06B30.83B29.89B
Cash FlowFree Cash Flow
2.83B2.20B-18.32B5.23B7.22B
Operating Cash Flow
3.14B2.54B-7.64B5.23B7.22B
Investing Cash Flow
-505.00M-329.00M11.35B-3.82B-6.13B
Financing Cash Flow
-2.23B-2.98B-2.70B-1.68B-323.00M

Munich Reinsurance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price577.20
Price Trends
50DMA
569.28
Positive
100DMA
543.66
Positive
200DMA
507.70
Positive
Market Momentum
MACD
0.62
Positive
RSI
52.54
Neutral
STOCH
63.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MUV2, the sentiment is Positive. The current price of 577.2 is above the 20-day moving average (MA) of 574.28, above the 50-day MA of 569.28, and above the 200-day MA of 507.70, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MUV2.

Munich Reinsurance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€74.73B13.3718.25%3.48%6.63%26.20%
64
Neutral
$12.80B9.717.59%16985.66%12.07%-7.53%
DBDB
$54.32B11.416.68%2.61%
€134.79B13.6516.56%4.38%
€31.88B11.279.28%2.45%
€33.93B14.9319.63%3.23%
€30.14B14.9617.10%2.31%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:MUV2
Munich Reinsurance
577.20
129.88
29.04%
DB
Deutsche Bank AG
27.31
11.18
69.31%
GB:0M6S
Allianz
351.78
100.33
39.90%
GB:0RLW
Commerzbank
26.48
11.71
79.28%
GB:0M9A
Hannover Rueck
281.96
57.20
25.45%
GB:0QA8
Talanx AG
115.70
42.42
57.89%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.