What moat does MTU Aero Engines AG have?

The advantage is the module already designed into an engine programme and the shop already approved for that engine. The engine maker can give the next visit to someone else. The moat narrows if the fleet flies less, or if the next programme does not carry MTU's module.

How do you read the MTU Aero Engines AG radar?

Health is debt against a module and shop business, not against the airline. Quality separates the margin on the new part from the margin on maintenance. Growth follows deliveries and flight hours. P/E is read against a year with a large fleet in the air, not against that peak. Shareholder return is the dividend, checked against cash. Do not read it as if MTU sold the whole engine.

Which multiples matter for MTU Aero Engines AG?

The P/E of a year of many shop visits is not normal earnings. EV/EBITDA is read with the module and the maintenance together. Do not use Safran's multiple as if the LEAP programme were MTU's. A dash if the MTX.DE cache is cold.

What does this MTU Aero Engines AG analysis leave out?

Not advice on MTU. Vaultflake does not split commercial and military and does not treat the shop licence as captive. This is not exclusive intellectual property. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

MTU Aero Engines AG (MTX.DE) analysis

MTU Aero Engines AG

Sector:Industrials · Aircraft Engine Modules and MRO

Country:Germany

Profile and moat

MTU builds aircraft-engine modules, above all the low-pressure turbine, and maintains engines in the shop. Someone else owns the whole engine: Safran, GE or Pratt hold the programme. MTU comes in as the module partner and as the shop. There is a commercial book and a military book. It is not the reference partner by decree and it is not one of the world's largest independent shops.

Parts and shop visits follow flight hours. A year with little of the fleet in the air is a thin maintenance year. The new part follows aircraft deliveries. This report does not treat the shop licence as an exclusive: the engine maker and other shops also work on the engine.

The dividend comes from that cash. It has to fit. It is not a toll on the flight hour.

MTU Aero Engines AG (MTX.DE) analysis

MTU Aero Engines AG

Sector:Industrials · Aircraft Engine Modules and MRO

Country:Germany

Profile and moat

The dividend comes from that cash. It has to fit. It is not a toll on the flight hour.

MTU Aero Engines AG (MTX.DE) analysis

Profile and moat

MTU Aero Engines AG (MTX.DE) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does MTU Aero Engines AG have?

How do you read the MTU Aero Engines AG radar?

Which multiples matter for MTU Aero Engines AG?

What does this MTU Aero Engines AG analysis leave out?

Related reports in Industrials · Aircraft Engine Modules and MRO

Siemens AG

Space Exploration Technologies Corp.

Caterpillar Inc.

Deere & Company

Honeywell International Inc.

GE Aerospace