| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 13.01 | -60 |
| Intrinsic value (DCF) | 894.48 | 2648 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Mutares SE & Co. KGaA is a Munich-based private equity firm specializing in acquiring and revitalizing small to medium-sized companies across Europe. Founded in 2008, Mutares focuses on distressed assets, turnarounds, and carve-outs, targeting businesses with annual revenues between €50 million and €500 million. The firm invests in diverse sectors, including automotive, engineering, consumer goods, technology, healthcare, and materials. Mutares typically seeks controlling stakes and holds investments for three to five years, leveraging operational improvements to unlock value. With a strong presence in Europe, the firm combines deep industry expertise with a hands-on approach to transform underperforming companies into profitable entities. Mutares' unique investment strategy positions it as a key player in the European mid-market private equity landscape, appealing to investors seeking exposure to niche turnaround opportunities.
Mutares presents an intriguing investment case with its focus on undervalued European mid-market companies. The firm's diversified portfolio across resilient sectors like automotive and healthcare mitigates sector-specific risks. With a market cap of €697 million and a diluted EPS of €18.41, Mutares demonstrates solid profitability, supported by a €2 dividend per share. However, investors should note the negative operating cash flow (-€27.5 million) and significant capital expenditures (-€138.2 million), which reflect the capital-intensive nature of turnaround investments. The firm's beta of 1.124 suggests higher volatility than the market, aligning with its distressed asset strategy. While the long holding period may delay returns, Mutares' proven track record in operational improvements offers potential for substantial capital appreciation. The firm's €504.5 million cash position provides liquidity for new acquisitions, but its €931.4 million debt load warrants monitoring.
Mutares competes in the European mid-market private equity space, differentiating itself through a specialized focus on distressed assets and corporate carve-outs. Unlike traditional PE firms targeting growth-stage companies, Mutares capitalizes on operational inefficiencies and restructuring opportunities, often in overlooked niches. The firm's hands-on management approach and sector-specific expertise allow it to extract value where others see risk. Its €50-500 million revenue target range positions it between smaller boutique firms and larger PE players, reducing direct competition. Mutares' German base provides access to Europe's robust industrial sector, while its multi-country presence enables cross-border deal flow. However, the firm faces challenges from established turnaround specialists and corporate divestiture teams within larger PE houses. Its success hinges on maintaining a pipeline of quality targets and executing operational turnarounds efficiently—a capability demonstrated by its €397.1 million net income. The firm's ability to navigate complex regulatory environments across Europe further strengthens its competitive moat.