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

• Market Cap: €630.75M
• Dividend Yield: 6.75%
• Average Volume (3M): 44.30K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.43
• Revenue Growth: 14.56%
• EPS Growth: N/A
• Country: DE
• Employees: 27,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 13.52
• Shares Outstanding: 21,348,255
• 10 Day Avg. Volume: 21,659
• 30 Day Avg. Volume: 44,300
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €38.00
• Price Target Upside: 28.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: €30.00 ▲(1.18% Upside)

The overall stock score of 58 reflects mixed financial performance with strong revenue growth but significant profitability and liquidity challenges. Technical indicators suggest a bearish trend, while 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.

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 makes money by acquiring underperforming or non-core subsidiaries from larger corporations and turning them around through strategic operational improvements and restructuring. The company typically purchases these businesses at low costs and then works to enhance their value through cost reductions, efficiency improvements, and strategic realignment. Revenue is primarily generated from the eventual sale of these improved businesses at a higher price. Additionally, Mutares may earn income through dividends and management fees from its portfolio companies during the holding period. Key factors contributing to earnings include the successful turnaround and sale of portfolio companies, as well as maintaining a pipeline of potential acquisition targets.

Mutares SE & Co. KGaA Financial Statement Overview

Summary

The company exhibits robust revenue growth but faces profitability challenges with negative EBIT margin and operational losses. High leverage is noted, alongside negative free cash flow, posing potential liquidity risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.26B	4.69B	3.77B	2.50B	1.58B
Gross Profit	796.10M	779.50M	267.70M	905.90M	251.00M
EBITDA	38.10M	686.00M	-148.30M	568.40M	120.60M
Net Income	-406.30M	397.10M	-6.70M	449.00M	27.10M
Balance Sheet
Total Assets	4.37B	4.35B	3.03B	2.56B	1.33B
Cash, Cash Equivalents and Short-Term Investments	500.60M	520.20M	407.30M	255.10M	166.00M
Total Debt	1.32B	931.40M	681.00M	609.90M	312.40M
Total Liabilities	3.70B	3.23B	2.32B	1.82B	1.12B
Stockholders Equity	679.00M	1.07B	712.70M	721.20M	190.30M
Cash Flow
Free Cash Flow	-449.90M	-192.00M	-123.70M	-175.80M	-78.50M
Operating Cash Flow	-286.90M	-27.50M	-20.80M	-116.10M	-43.00M
Investing Cash Flow	123.60M	454.50M	84.10M	170.70M	51.40M
Financing Cash Flow	55.70M	-144.60M	-55.80M	61.30M	57.80M

Mutares SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.65
• 50DMA: Negative
• 100DMA: Negative
• 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:MUX, the sentiment is Positive. The current price of 29.65 is above the 20-day moving average (MA) of 28.45, below the 50-day MA of 30.31, and above the 200-day MA of 28.57, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 93.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€173.42M	10.31	13.29%	5.49%	12.21%	28.29%
B7E	70 Neutral	€91.52M	6.90	0.48%	3.19%	-24.50%	―
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
MUX	58 Neutral	€630.75M	16.44	4.23%	6.75%	14.56%	―
0QF7	―	€455.08M	14.53	4.79%	―	―	―
PZS	―	€63.09M	44.02	2.00%	2.16%	―	―
A7A	57 Neutral	€121.95M	―		―	―	―