MTU Aero Engines AG
🇩🇪 MTX.XETRA · Frankfurt · DE000A0D9PT0
Industrials
EUR 316.30 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 316.30 ÷ 18.90 = 16.7
TTM period through: 2025-12-31
Forward P/E (estimated): 17.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.7
Yield (Fwd)
1.14%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.12%
Net Debt/EBITDA (TTM)
0.7x
Latest quarter: 1.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 1.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
19.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
ROE
26.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
MTU Aero Engines is a high-quality participant in the global aircraft engine oligopoly, boasting excellent long-term revenue growth and robust returns on equity. However, its highly cyclical nature, recent history of severe dividend cuts, and minimal 1.12% yield make it fundamentally unsuitable for a conservative income strategy. Not recommended for new positions, as better dividend opportunities exist in more stable, essential service sectors.
Sector Context
MTU Aero Engines develops, manufactures, and provides maintenance services for commercial and military aircraft engines, operating within a highly consolidated global oligopoly. For dividend investors, the aerospace and defense sector is highly cyclical and vulnerable to global crises (like pandemics or geopolitical shocks), which often leads to volatile cash flows and abrupt dividend cuts rather than the predictable, bond-like income desired for long-term compounding.
Temporary Opportunity Identified
One-time financial charges related to the Pratt & Whitney GTF engine issues caused a temporary net loss in 2023 and a subsequent dividend cut in 2024, alongside broader aerospace supply chain volatility.
📊 Strategy Analysis
- • Outstanding Return on Equity of 26.29% and a 5-year revenue CAGR of 15.9% highlight the company's strong competitive position in the consolidated aircraft engine market.
- • Excellent balance sheet management with a Net Debt/EBITDA of just 0.71x, well below the 3x strategy limit, providing significant financial resilience.
⚠ What to Watch
- • The 1.12% dividend yield falls drastically below the strategy's minimum 3% requirement, representing a fundamental strategy mismatch for income-focused portfolios.
- • A history of severe, reactive dividend cuts during cyclical downturns (95.2% cut in 2020, 38.5% cut in 2024) demonstrates the payout is highly vulnerable to external macro shocks.
- • Current P/E of 16.74 exceeds the target 8-15x value range, offering limited margin of safety for a cyclical industrial asset.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.