Munich Reinsurance (MUV2) AI Stock Analysis

• Market Cap: €70.16B
• Dividend Yield: 3.58%
• Average Volume (3M): 271.59K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.76
• Revenue Growth: 0.48%
• EPS Growth: 11.17%
• Country: DE
• Employees: 44,224
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 15.46
• Shares Outstanding: 130,645,070
• 10 Day Avg. Volume: 216,362
• 30 Day Avg. Volume: 271,594
• PEG Ratio: 0.43
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 22.90
• 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: €595.13
• Price Target Upside: 6.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €610.00 ▲(9.32% Upside)

Munich Reinsurance's overall stock score is driven by its strong financial performance and stable valuation. The company's profitability and capital management are robust, though liquidity needs monitoring. Technical analysis presents a neutral outlook with slight bullish momentum. The valuation is reasonable with an attractive dividend yield, supporting the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong equity base enhances financial stability and provides a buffer against economic uncertainties, supporting sustainable growth.

Cash Generation

Improved cash generation capabilities strengthen the company's ability to invest in growth opportunities and manage debt, ensuring long-term viability.

Negative Factors

Decreased Cash Reserves

Reduced cash reserves may limit financial flexibility and the ability to respond to unexpected expenses, potentially impacting liquidity.

Earnings Volatility

Volatile cash flows can create uncertainty in financial planning and may affect the company's ability to sustain operations during economic downturns.

EPS Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially affecting investor confidence and future capital raising efforts.

Munich Reinsurance Business Overview & Revenue Model

Company Description

Münchener 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 Money

Munich Re generates revenue primarily through its reinsurance operations, which involve assuming a portion of the risk from primary insurers in exchange for premiums. The company collects these premiums, which are a significant source of income, and invests them in various financial instruments to generate investment income. Additionally, Munich Re offers primary insurance products, further diversifying its revenue streams. The company benefits from long-term partnerships with insurers and corporations, allowing it to maintain a stable client base. Its strong capital management and expertise in risk modeling also contribute to its profitability, enabling it to effectively price its products and manage claims, thereby maximizing earnings.

Munich Reinsurance Financial Statement Overview

Summary

Munich Reinsurance demonstrates robust financial health with strong profitability and effective capital management. The income statement shows consistent net income growth and improved profit margins. The balance sheet is stable with a solid equity base, but cash reserves have decreased, impacting liquidity. Cash flow is positive with significant free cash flow growth, though subject to fluctuations.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.90B	42.31B	39.68B	39.71B	64.46B	58.64B
Gross Profit	40.90B	43.69B	41.06B	40.76B	53.78B	48.66B
EBITDA	7.82B	9.41B	7.72B	13.16B	4.47B	1.82B
Net Income	5.09B	5.68B	4.61B	5.31B	2.93B	1.21B
Balance Sheet
Total Assets	275.69B	286.51B	273.79B	298.57B	312.40B	297.95B
Cash, Cash Equivalents and Short-Term Investments	176.70B	186.64B	8.57B	149.71B	171.24B	164.44B
Total Debt	6.11B	6.32B	4.71B	6.45B	6.80B	6.74B
Total Liabilities	244.93B	253.77B	244.02B	277.37B	281.46B	267.95B
Stockholders Equity	30.58B	32.64B	29.65B	21.06B	30.83B	29.89B
Cash Flow
Free Cash Flow	0.00	2.83B	2.40B	-18.32B	5.23B	7.22B
Operating Cash Flow	0.00	3.14B	2.54B	-7.64B	5.23B	7.22B
Investing Cash Flow	0.00	-505.00M	-329.00M	11.35B	-3.82B	-6.13B
Financing Cash Flow	0.00	-2.23B	-2.98B	-2.70B	-1.68B	-323.00M

Munich Reinsurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 558.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 558 is above the 20-day moving average (MA) of 539.42, above the 50-day MA of 546.26, and above the 200-day MA of 555.86, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MUV2.

Munich Reinsurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBK	75 Outperform	€36.71B	14.13	8.78%	1.89%	-2.40%	19.42%
HNR1	74 Outperform	€29.93B	12.06	21.34%	3.46%	2.57%	9.75%
MUV2	71 Outperform	€70.16B	13.89	19.40%	3.58%	0.48%	11.17%
DBK	69 Neutral	$60.37B	9.98	9.15%	2.15%	-8.53%	62.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALV	67 Neutral	€136.02B	13.82	―	4.05%	25.33%	12.54%
TLX	67 Neutral	€27.53B	12.18	19.49%	2.45%	3.70%	24.02%