MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook. Despite covid-19's impact on short- to medium-term demand, air travel has been resilient with a consistent recovery driven by leisure travel, demand for narrow-body aircraft, and China's reopening.
There is potential to increase share on the GTF program to about 20%-22% as a result of a long-standing partnership with Pratt & Whitney.
Further technical issues from in-service GTF engines could hit the margins and production ramp-up.
|
Metric
|
MTX
|
RTX
|
GE
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.94 | 19.54 | 48.14 |
Price/Book Value | 4.17 | 2.22 | 5.91 |
Price/Sales | 2.29 | 1.99 | 2.55 |
Price/Cash Flow | 13.60 | 21.54 | 42.18 |
|
Metric
|
MTX
|
RTX
|
GE
|
|---|---|---|---|
Quick Ratio | 0.77 | 0.64 | 0.76 |
Current Ratio | 1.12 | 1.07 | 1.17 |
Interest Coverage | −2.42 | 3.15 | 5.22 |
|
Metric
|
MTX
|
RTX
|
GE
|
|---|---|---|---|
Return on Assets (Normalized) | 6.21% | 2.51% | 3.12% |
Return on Equity (Normalized) | 19.59% | 6.05% | 17.00% |
Return on Invested Capital (Normalized) | 15.68% | 5.17% | 10.09% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GE
| GE Aerospace | Gclgkgynm | Rzlmw | $177.7 Bil | |
RTX
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EADSY
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LMT
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BA
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GD
| General Dynamics Corp | Sqprlnlm | Rhjpj | $78.0 Bil | |
NOC
| Northrop Grumman Corp | Wqkfnfwpy | Xskbp | $71.2 Bil | |
TDG
| TransDigm Group Inc | Tnffzpkxl | Lsyv | $69.9 Bil | |
BAESY
| BAE Systems PLC ADR | Wyzqrhfl | Sczs | $50.7 Bil | |
RYCEY
| Rolls-Royce Holdings PLC ADR | Ygbdvdqs | Hycfwq | $44.3 Bil |
