Estimated Discount To Fair Value: 45.2%

MTU Aero Engines, trading at €309.5, is significantly below its estimated fair value of €564.44, reflecting potential undervaluation based on cash flows. The company forecasts robust earnings growth of 34.31% annually and expects to become profitable within three years, outpacing the German market's revenue growth rate at 11.9% per year. Recent financial results show increased sales and net income for the first half of 2024, supported by a successful €745.88 million fixed-income offering in September 2024.

• Our expertly prepared growth report on MTU Aero Engines implies its future financial outlook may be stronger than recent results.

• Click here and access our complete balance sheet health report to understand the dynamics of MTU Aero Engines.

Schaeffler

Overview: Schaeffler AG, along with its subsidiaries, develops, manufactures, and sells components and systems for industrial applications across Europe, the Americas, China, and the Asia Pacific; it has a market cap of approximately €4.77 billion.

Operations: The company's revenue is segmented into Automotive Technologies at €9.80 billion, Vehicle Lifetime Solutions at €2.43 billion, and Bearings & Industrial Solutions at €4.10 billion.

Estimated Discount To Fair Value: 15.9%

Schaeffler, trading at €5.05, is slightly undervalued with a fair value estimate of €6. The company anticipates substantial earnings growth of nearly 38% annually over the next three years, surpassing the German market's average. Despite this potential, recent financials reveal declining net income and lower profit margins compared to last year. Additionally, shares are highly illiquid and interest payments remain inadequately covered by earnings, posing risks to investors focused on cash flow valuation.

• In light of our recent growth report, it seems possible that Schaeffler's financial performance will exceed current levels.

• Unlock comprehensive insights into our analysis of Schaeffler stock in this financial health report.

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XTRA:GXI XTRA:MTX and XTRA:SHA0.

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