Mutares SE & Co. KGaA (MUX) AI Stock Analysis

• Market Cap: €692.45M
• Dividend Yield: 6.77%
• Average Volume (3M): 29.01K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.75
• Revenue Growth: 14.56%
• EPS Growth: N/A
• Country: DE
• Employees: 27,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 21,348,255
• 10 Day Avg. Volume: 28,010
• 30 Day Avg. Volume: 29,012
• PEG Ratio: <0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.13
• 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: €41.50
• Price Target Upside: 27.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €35.00 ▲(7.53% Upside)

Mutares SE & Co. KGaA's overall stock score is primarily influenced by its mixed financial performance, with strong revenue growth offset by profitability and liquidity challenges. Technical indicators suggest a bearish trend, while the valuation is supported by a reasonable P/E ratio and high dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Recurring management and financing income

Beyond episodic exit gains, recurring management fees and potential interest from shareholder financing provide a durable income layer that smooths volatility in realization timing. This recurring cash inflow supports operating overhead and funds turnaround programs while exits are executed.

Turnaround/acquisition-driven business model

A repeatable playbook—buying non-core or underperforming units, applying operational fixes, then exiting—creates a scalable value chain. Institutionalized turnaround capabilities and governance oversight are durable competitive advantages that can deliver outsized returns across cycles if execution remains consistent.

Sustained revenue growth trend

Consistent top-line growth indicates the portfolio and acquired businesses are expanding or being consolidated effectively. Over 2–6 months this trend underpins management's ability to extract synergies, charge fees and justify valuation uplifts at exits, reducing reliance on one-off deals for revenue.

Negative Factors

Weak cash conversion and negative free cash flow

Persistent negative operating and free cash flow undermines the firm's internal funding capacity for restructurings, increasing dependence on external financing or seller support. Over the medium term this reduces flexibility, raises refinancing risk, and can delay or impair value-creating exits.

Rising financial leverage

Higher debt-to-equity and a declining equity base make the holding more vulnerable to interest-cost shocks and cyclical downturns. Leverage limits capacity for new acquisitions, elevates refinancing needs, and magnifies downside when exit timing slips, pressuring long-term stability.

Profitability deterioration

A shift to negative net income and EBIT margin indicates the portfolio's operating improvements haven't translated into group profitability. If sustained, this erodes retained earnings, reduces potential dividends or distributions, and questions the long-term economics of the turnaround model.

Mutares SE & Co. KGaA Business Overview & Revenue Model

Company Description

Mutares SE & Co. KGaA is a private equity firm specializing in investments in secondary direct, special situations, bridge financing, recapitalization, distressed/vulture, management succession, reorganization, carve-outs, turnarounds, and re-funding. It also considers co-investments also. The firm typically acquires small and medium-sized companies. The firm invests its personal capital. It also focuses on platform and add-on acquisitions. The firm makes investments in automotive, wood and paper, construction and infrastructure, engineering, consumer good, Technology, commercial repair services, automobiles and components, healthcare equipment and services, materials including containers and packaging. The firm primarily invests in companies with established market positions and whose focus of activity is in Europe. It considers acquiring companies that have annual sales volume of more than €50 million ($55.31 million) and revenues between €50 million ($55.31 million) and €500 million ($538.71 million) with an EBITDA up to €5 million ($5.38 million). It prefers to acquire a controlling and majority stake in its portfolio companies. It typically makes long term investments with a holding period between three and five years. Mutares SE & Co. KGaA was founded in February, 2008 and is based in Munich, Germany, with additional offices in Europe.

How the Company Makes Money

Mutares generates revenue primarily through the acquisition and management of portfolio companies. Its revenue model is based on enhancing the operational efficiency and profitability of its investments, leading to increased valuations and eventual exits through sales or initial public offerings (IPOs). Key revenue streams include management fees from its portfolio companies and capital gains realized from the sale of these businesses. Additionally, Mutares benefits from strategic partnerships with industry leaders that provide synergies and enhance the competitiveness of its portfolio companies, further contributing to its overall earnings.

Mutares SE & Co. KGaA Financial Statement Overview

Summary

Mutares SE & Co. KGaA shows robust revenue growth but faces profitability challenges with negative EBIT margin and operational losses. Rising debt-to-equity ratio and negative free cash flow indicate financial leverage and liquidity risks, despite asset growth and a reasonable equity ratio.

Income Statement

The income statement shows a substantial revenue growth over the years, with a notable jump from 2020 to 2021. However, the recent annual figures indicate a decline in profitability, with net income turning negative in 2024, leading to a negative EBIT margin. The company faced challenges in maintaining a consistent gross profit margin, and the recent fiscal year shows significant operational losses.

Balance Sheet

The balance sheet reflects a strong growth in total assets over the years, but the increase in total liabilities has led to a rising debt-to-equity ratio, indicating higher financial leverage. Stockholders' equity has fluctuated, with a decline in 2024, suggesting potential challenges in maintaining financial stability. Despite this, the equity ratio remains reasonable, showing a balanced asset financing.

Cash Flow

Cash flow analysis highlights a struggle to generate positive operating cash flow, resulting in negative free cash flow consistently. The company has faced challenges in converting operating performance into cash, as indicated by a negative operating cash flow to net income ratio in recent periods. This could impact future liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.82B	5.26B	4.69B	3.77B	2.50B	1.58B
Gross Profit	2.22B	189.70M	779.50M	1.30B	157.10M	81.40M
EBITDA	-415.50M	38.10M	686.00M	97.60M	568.40M	120.60M
Net Income	38.50M	-406.30M	397.10M	-6.70M	449.00M	27.10M
Balance Sheet
Total Assets	5.27B	4.37B	4.35B	3.03B	2.56B	1.33B
Cash, Cash Equivalents and Short-Term Investments	533.70M	500.60M	520.20M	246.40M	255.10M	166.00M
Total Debt	1.47B	1.32B	931.40M	681.00M	526.90M	312.40M
Total Liabilities	4.33B	3.70B	3.23B	2.32B	1.82B	1.12B
Stockholders Equity	953.90M	679.00M	1.07B	712.70M	721.20M	190.30M
Cash Flow
Free Cash Flow	-352.10M	-449.90M	-165.70M	-123.70M	-175.80M	-78.50M
Operating Cash Flow	-206.30M	-286.90M	-27.50M	-20.80M	-116.10M	-43.00M
Investing Cash Flow	223.90M	123.60M	454.50M	84.10M	170.70M	51.40M
Financing Cash Flow	82.60M	55.70M	-144.60M	-55.80M	47.90M	57.80M

Mutares SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.55
• 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:MUX, the sentiment is Neutral. The current price of 32.55 is below the 20-day moving average (MA) of 32.82, above the 50-day MA of 30.17, and above the 200-day MA of 30.25, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:MUX.

Mutares SE & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPCK	73 Outperform	€177.65M	9.60	14.53%	5.53%	1.42%	8.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
B7E	63 Neutral	€83.89M	4.10	8.40%	3.71%	-29.22%	―
MUX	61 Neutral	€692.45M	18.05	4.23%	6.77%	14.56%	―
DBAN	61 Neutral	€480.47M	15.70	4.65%	4.99%	-17.47%	76.28%
A7A	48 Neutral	€143.29M	―	―	―	―	―