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MTU Aero Engines AG (ETR:MTX) Has Attractive Fundamentals

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MTU Aero Engines AG (ETR:MTX) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of MTX, it is a financially-healthy , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on MTU Aero Engines here.

Excellent balance sheet with solid track record and pays a dividend

MTX delivered a satisfying double-digit returns of 21% in the most recent year Not surprisingly, MTX outperformed its industry which returned 13%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. MTX’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. MTX seems to have put its debt to good use, generating operating cash levels of 0.56x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

XTRA:MTX Income Statement Export February 11th 19
XTRA:MTX Income Statement Export February 11th 19

Income investors would also be happy to know that MTX is a great dividend company, with a current yield standing at 1.2%. MTX has also been regularly increasing its dividend payments to shareholders over the past decade.

XTRA:MTX Historical Dividend Yield February 11th 19
XTRA:MTX Historical Dividend Yield February 11th 19

Next Steps:

For MTU Aero Engines, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MTX’s future growth? Take a look at our free research report of analyst consensus for MTX’s outlook.

  2. Valuation: What is MTX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MTX is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MTX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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