| MTU Aero Engines AG (DE000A0D9PT0) | |||
361,40 EURStand (close): 01.07.25 |
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| 24.06.25 16:45:04 | 3 Reasons Why Growth Investors Shouldn't Overlook MTU Aero Engines (MTUAY) |  |
| Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. High Yield Savings Offers Earn 4.10% APY** on balances of $5,000 or more View Offer Earn up to 4.00% APY with Savings Pods View Offer Earn up to 3.80% APY¹ & up to $300 Cash Bonus with Direct Deposit View Offer Powered by Money.com - Yahoo may earn commission from the links above. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. MTU Aero Engines AG (MTUAY) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below: Earnings Growth Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for MTU Aero Engines is 22.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.5% this year, crushing the industry average, which calls for EPS growth of 15.5%. Cash Flow Growth While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds. Right now, year-over-year cash flow growth for MTU Aero Engines is 34.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of 27.3%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 8.6% over the past 3-5 years versus the industry average of 1.8%. Story Continues Promising Earnings Estimate Revisions Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for MTU Aero Engines. The Zacks Consensus Estimate for the current year has surged 3.2% over the past month. Bottom Line MTU Aero Engines has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that MTU Aero Engines is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MTU Aero Engines AG (MTUAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 07.05.25 07:02:39 | MTU Aero Engines AG (MTUAF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Tariff ... |  |
| Group Revenue: Nearly EUR2.1 billion, a 25% increase from last year. Adjusted EBIT: EUR300 million, a 38% increase, with a margin of 14.3%. Adjusted Net Income: EUR221 million, a 41% improvement. Free Cash Flow: EUR150 million. OEM Segment Revenue: EUR620 million, an 11% increase. Commercial Business Revenue: EUR507 million, a 17% increase. Military Revenue: EUR113 million, a small decrease. Adjusted EBITDA for OEM: EUR176 million, a 35% increase, with a margin of 28.4%. Commercial MRO Segment Revenue: EUR1.5 billion, a 33% increase. Adjusted EBIT for MRO: EUR125 million, a 42% increase, with a margin of 8.2%. 2025 Revenue Guidance: Adjusted to EUR8.3 billion to EUR8.5 billion. Free Cash Flow Guidance for 2025: EUR250 million to EUR300 million. Warning! GuruFocus has detected 8 Warning Sign with MTUAF. Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points MTU Aero Engines AG (MTUAF) reported a 25% increase in group revenues, reaching nearly EUR2.1 billion in the first quarter of 2025. The GTF Advantage received FAA certification in February 2025, marking a significant milestone for the GTF engine family. The company opened a second MRO shop in China, enhancing its capacity and positioning it as the largest MRO facility globally. MTU Aero Engines AG (MTUAF) expanded its footprint in North America, introducing MRO services for LEAP-1A and 1B engines and GEnx full engine MRO services. Adjusted EBIT increased by 38% to EUR300 million, with a strong margin of 14.3%, driven by a favorable business mix in commercial OEM. Negative Points The global tariff environment creates uncertainties, potentially impacting MTU Aero Engines AG (MTUAF)'s profitability. US tariffs have caused confusion and uncertainty, with a potential mid- to high-digit million euro impact before mitigation. The company's revenue outlook in euros has been reduced due to recent exchange rate developments. Military revenues saw a small decrease, reflecting a typical slow start to the year. The company faces potential headwinds from additional US tariffs, which could affect profitability despite mitigation efforts. Q & A Highlights Q: Can you provide more details on the potential impact of tariffs and the mitigation measures MTU Aero Engines AG is considering? A: Lars Wagner, CEO, explained that the tariff situation is volatile, and MTU is assessing the impact on OEM and MRO operations. They are exploring countermeasures such as rerouting engine modules and revisiting shipments to avoid tariffs. Contract management is also being reviewed to determine if tariffs can be passed to customers. Wagner remains optimistic about finding a solution due to the industry's importance globally. Story Continues Q: How did the OEM business perform in Q1, and what drove the margin improvement? A: Peter Kameritsch, CFO, stated that OEM revenues increased by 11% to EUR620 million, with a margin of 28.4%. The margin improvement was driven by a favorable business mix, including higher spare engine sales, which typically have better pricing. However, this margin level is not expected to be sustainable throughout the year as OE production ramps up. Q: What is the outlook for MTU's MRO segment, and how significant is the GTF engine's contribution? A: Kameritsch noted that MRO revenues increased by 33% to EUR1.5 billion, with the GTF engine contributing around 34% of MRO revenues. The MRO segment is expected to grow between 10% and 15% excluding GTF, while GTF itself is projected to grow between 20% and 25%. Q: Can you elaborate on the expansion with GE and its potential impact on MTU's business? A: Wagner highlighted that the expansion with GE, including MRO services for LEAP and GEnx engines, represents a multi-billion-dollar opportunity over the programs' lifetimes. This long-term investment is expected to enhance MTU's market position, with more details to be shared at the upcoming Capital Market Day. Q: How is MTU handling the increased R&D expenses, and what are the main drivers? A: Kameritsch explained that the R&D increase in Q1 was due to a one-time imbalance payment related to the GTF Advantage program. This payment reflects MTU's 18% program share and is not expected to recur in the following quarters. The ongoing R&D efforts are aligned with MTU's strategic goals and program commitments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 20.04.25 08:36:12 | Return Trends At MTU Aero Engines (ETR:MTX) Aren't Appealing | |
| If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of MTU Aero Engines (ETR:MTX) looks decent, right now, so lets see what the trend of returns can tell us. We check all companies for important risks. See what we found for MTU Aero Engines in our free report. Return On Capital Employed (ROCE): What Is It? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on MTU Aero Engines is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = €832m ÷ (€12b - €6.0b) (Based on the trailing twelve months to December 2024). Therefore, MTU Aero Engines has an ROCE of 13%. That's a pretty standard return and it's in line with the industry average of 13%. Check out our latest analysis for MTU Aero Engines XTRA:MTX Return on Capital Employed April 20th 2025 In the above chart we have measured MTU Aero Engines' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for MTU Aero Engines . So How Is MTU Aero Engines' ROCE Trending? While the current returns on capital are decent, they haven't changed much. The company has employed 41% more capital in the last five years, and the returns on that capital have remained stable at 13%. Since 13% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. On a separate but related note, it's important to know that MTU Aero Engines has a current liabilities to total assets ratio of 48%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. The Bottom Line On MTU Aero Engines' ROCE The main thing to remember is that MTU Aero Engines has proven its ability to continually reinvest at respectable rates of return. On top of that, the stock has rewarded shareholders with a remarkable 165% return to those who've held over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further. Story Continues While MTU Aero Engines doesn't shine too bright in this respect, it's still worth seeing if the company is trading at attractive prices. You can find that out with our FREE intrinsic value estimation for MTX on our platform. While MTU Aero Engines isn't earning the highest return, check out this freelist of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 28.03.25 12:50:53 | MTU Aero Engines Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags | |
| MTU Aero Engines (ETR:MTX) Full Year 2024 Results Key Financial Results Revenue: €7.41b (up 38% from FY 2023). Net income: €633.0m (up from €102.0m loss in FY 2023). Profit margin: 8.5% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. EPS: €11.77 (up from €1.90 loss in FY 2023). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.XTRA:MTX Revenue and Expenses Breakdown March 28th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period MTU Aero Engines Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) missed analyst estimates by 8.0%. The primary driver behind last 12 months revenue was the Commercial Maintenance Business (MRO) segment contributing a total revenue of €5.07b (68% of total revenue). Notably, cost of sales worth €6.16b amounted to 83% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling €199.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how MTX's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Aerospace & Defense industry in Europe. Performance of the market in Germany. The company's shares are down 2.1% from a week ago. Balance Sheet Analysis While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. See our latest analysis on MTU Aero Engines' balance sheet health. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 24.03.25 13:04:03 | Is MTU Aero Engines AG (ETR:MTX) Trading At A 48% Discount? | |
| Key Insights MTU Aero Engines' estimated fair value is €655 based on 2 Stage Free Cash Flow to Equity Current share price of €340 suggests MTU Aero Engines is potentially 48% undervalued The €343 analyst price target for MTX is 48% less than our estimate of fair value Does the March share price for MTU Aero Engines AG (ETR:MTX) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Step By Step Through The Calculation We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €279.1m €513.3m €770.6m €1.01b €1.18b €1.33b €1.46b €1.55b €1.63b €1.69b Growth Rate Estimate Source Analyst x8 Analyst x9 Analyst x6 Analyst x3 Est @ 17.50% Est @ 12.58% Est @ 9.13% Est @ 6.72% Est @ 5.03% Est @ 3.85% Present Value (€, Millions) Discounted @ 5.0% €266 €466 €666 €830 €928 €996 €1.0k €1.1k €1.1k €1.0k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €8.3b Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.1%. We discount the terminal cash flows to today's value at a cost of equity of 5.0%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €1.7b× (1 + 1.1%) ÷ (5.0%– 1.1%) = €44b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €44b÷ ( 1 + 5.0%)10= €27b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €35b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of €340, the company appears quite undervalued at a 48% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.XTRA:MTX Discounted Cash Flow March 24th 2025 The Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at MTU Aero Engines as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.0%, which is based on a levered beta of 0.902. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for MTU Aero Engines SWOT Analysis for MTU Aero Engines Strength Debt is not viewed as a risk. Weakness Dividend is low compared to the top 25% of dividend payers in the Aerospace & Defense market. Opportunity Annual revenue is forecast to grow faster than the German market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the German market. Moving On: Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For MTU Aero Engines, we've put together three further aspects you should consider: Financial Health: Does MTX have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does MTX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 20.03.25 13:40:09 | Is MTU Aero Engines (MTUAY) Stock Outpacing Its Aerospace Peers This Year? | |
| Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is MTU Aero Engines AG (MTUAY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. MTU Aero Engines AG is one of 51 individual stocks in the Aerospace sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. MTU Aero Engines AG is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for MTUAY's full-year earnings has moved 5.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, MTUAY has gained about 13.8% so far this year. Meanwhile, the Aerospace sector has returned an average of 4.6% on a year-to-date basis. This means that MTU Aero Engines AG is outperforming the sector as a whole this year. Another stock in the Aerospace sector, Triumph Group (TGI), has outperformed the sector so far this year. The stock's year-to-date return is 36.2%. Over the past three months, Triumph Group's consensus EPS estimate for the current year has increased 1.5%. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, MTU Aero Engines AG is a member of the Aerospace - Defense industry, which includes 24 individual companies and currently sits at #135 in the Zacks Industry Rank. On average, this group has gained an average of 4.3% so far this year, meaning that MTUAY is performing better in terms of year-to-date returns. In contrast, Triumph Group falls under the Aerospace - Defense Equipment industry. Currently, this industry has 26 stocks and is ranked #29. Since the beginning of the year, the industry has moved +5.3%. Investors interested in the Aerospace sector may want to keep a close eye on MTU Aero Engines AG and Triumph Group as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Story Continues MTU Aero Engines AG (MTUAY) : Free Stock Analysis Report Triumph Group, Inc. (TGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 12.03.25 16:45:05 | Is MTU Aero Engines (MTUAY) a Solid Growth Stock? 3 Reasons to Think "Yes" | |
| Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Our proprietary system currently recommends MTU Aero Engines AG (MTUAY) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. Here are three of the most important factors that make the stock of this company a great growth pick right now. Earnings Growth Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for MTU Aero Engines is 16.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 14.3% this year, crushing the industry average, which calls for EPS growth of 13.2%. Cash Flow Growth While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds. Right now, year-over-year cash flow growth for MTU Aero Engines is 38.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.3%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 4.6% over the past 3-5 years versus the industry average of 2.2%. Story Continues Promising Earnings Estimate Revisions Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for MTU Aero Engines. The Zacks Consensus Estimate for the current year has surged 0.3% over the past month. Bottom Line MTU Aero Engines has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that MTU Aero Engines is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MTU Aero Engines AG (MTUAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 04.03.25 14:40:11 | Has AAR (AIR) Outpaced Other Aerospace Stocks This Year? | |
| For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. AAR (AIR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question. AAR is one of 51 companies in the Aerospace group. The Aerospace group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AAR is currently sporting a Zacks Rank of #1 (Strong Buy). The Zacks Consensus Estimate for AIR's full-year earnings has moved 4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. According to our latest data, AIR has moved about 3.2% on a year-to-date basis. Meanwhile, the Aerospace sector has returned an average of 1.8% on a year-to-date basis. This means that AAR is performing better than its sector in terms of year-to-date returns. Another Aerospace stock, which has outperformed the sector so far this year, is MTU Aero Engines AG (MTUAY). The stock has returned 9.7% year-to-date. The consensus estimate for MTU Aero Engines AG's current year EPS has increased 5.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, AAR belongs to the Aerospace - Defense Equipment industry, which includes 26 individual stocks and currently sits at #71 in the Zacks Industry Rank. Stocks in this group have gained about 2.6% so far this year, so AIR is performing better this group in terms of year-to-date returns. In contrast, MTU Aero Engines AG falls under the Aerospace - Defense industry. Currently, this industry has 24 stocks and is ranked #84. Since the beginning of the year, the industry has moved +1.5%. Going forward, investors interested in Aerospace stocks should continue to pay close attention to AAR and MTU Aero Engines AG as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Story Continues AAR Corp. (AIR) : Free Stock Analysis Report MTU Aero Engines AG (MTUAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 03.03.25 14:15:03 | RTX Corporation (RTX) Hit a 52 Week High, Can the Run Continue? | |
| Have you been paying attention to shares of RTX (RTX)? Shares have been on the move with the stock up 3.1% over the past month. The stock hit a new 52-week high of $133.09 in the previous session. RTX has gained 14.9% since the start of the year compared to the 2.4% move for the Zacks Aerospace sector and the 2.1% return for the Zacks Aerospace - Defense industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 28, 2025, RTX reported EPS of $1.54 versus consensus estimate of $1.37 while it beat the consensus revenue estimate by 5.19%. For the current fiscal year, RTX is expected to post earnings of $6.13 per share on $84.28 billion in revenues. This represents a 6.98% change in EPS on a 4.39% change in revenues. For the next fiscal year, the company is expected to earn $6.84 per share on $89.06 billion in revenues. This represents a year-over-year change of 11.64% and 5.67%, respectively. Valuation Metrics RTX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style. RTX has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 21.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 14.7X. Additionally, the stock has a PEG ratio of 2.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective. Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, RTX currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates. Story Continues Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if RTX meets the list of requirements. Thus, it seems as though RTX shares could have a bit more room to run in the near term. How Does RTX Stack Up to the Competition? Shares of RTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MTU Aero Engines AG (MTUAY). MTUAY has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of F. Earnings were strong last quarter. MTU Aero Engines AG beat our consensus estimate by 5.88%, and for the current fiscal year, MTUAY is expected to post earnings of $8.69 per share on revenue of $9.01 billion. Shares of MTU Aero Engines AG have gained 1.5% over the past month, and currently trade at a forward P/E of 19.98X and a P/CF of 18.65X. The Aerospace - Defense industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RTX and MTUAY, even beyond their own solid fundamental situation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RTX Corporation (RTX) : Free Stock Analysis Report MTU Aero Engines AG (MTUAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 24.02.25 09:51:33 | MTU Aero Engines' (ETR:MTX) earnings growth rate lags the 8.7% CAGR delivered to shareholders | |
| The MTU Aero Engines AG (ETR:MTX) share price has had a bad week, falling 11%. While that's not great, the returns over five years have been decent. After all, the stock has performed better than the market (40%) in that time, and is up 46%. Although MTU Aero Engines has shed €2.0b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. Check out our latest analysis for MTU Aero Engines In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, MTU Aero Engines moved from a loss to profitability. That would generally be considered a positive, so we'd hope to see the share price to rise. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).XTRA:MTX Earnings Per Share Growth February 24th 2025 It is of course excellent to see how MTU Aero Engines has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our freereport on how its financial position has changed over time. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, MTU Aero Engines' TSR for the last 5 years was 52%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective We're pleased to report that MTU Aero Engines shareholders have received a total shareholder return of 43% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 9% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before forming an opinion on MTU Aero Engines you might want to consider these 3 valuation metrics. Story Continues But note: MTU Aero Engines may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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