MTU worth to invest?

MTU Aero Engines fivefold it’s worth in the last four years and had it’s all time high in May 2013 with 79,61 € then it decreased to 65,76 € and increased with the publication of the business report about 10% over the time. The last days the assett decreased after reaching 71,01 €. The forecast of analysts target was 72,00 €. Bloomberg reports about the profit warning in the parts sales sector.

So Societé Generale forecasts a bad outlook and gradate MTU Aero Engines.

However the business report say that the service sector, the maintaining sector of the engines slowed. This is a diffrent meaning, because the maintaining includes the redularyly engines check and this means that a calculated revenue was too small. It is much more than only selling the parts. So it is remains to be seen what the airlines will decide. To check their engines by their own, the airplane producers or do that with service contracts by the engine producers.

The assett is in deversified holdings by 52%. The first 3 biggest shareholders are from USA and had a dividend yield of 1.9%. The revenue per share was 3.32 €, the dividende paid 1.35 €.

At the End of 2013 MTU Aero Engines had 2 616 patents splitted in the sectors:

7% maintaining

33% production

28% turbines

12% engines

20% supercharger

The aviation industrie forecasts an increasing flighttraffic of 4,6% pa from 2014 until 2020 that means a total of 40% driven from South America and Asia. That will increase the production of aeroplanes from 1200 pa to 1800 pa. The amount of producers of turbines will probably be equal. So MTU engines has to match the aeroplane producers need to increase it’s market share, and that most in the service sector.

Chart and profile of MTU.


Development of dividend and profit