RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1RHM • DE0007030009
1773 EUR
-45.5 (-2.5%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 1RHM. 1RHM was compared to 53 industry peers in the Aerospace & Defense industry. While 1RHM has a great profitability rating, there are some minor concerns on its financial health. 1RHM shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year 1RHM was profitable.
- 1RHM had a positive operating cash flow in the past year.
- 1RHM had positive earnings in 4 of the past 5 years.
- In the past 5 years 1RHM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.36%, 1RHM is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
- 1RHM has a Return On Equity of 17.96%. This is in the better half of the industry: 1RHM outperforms 64.15% of its industry peers.
- The Return On Invested Capital of 1RHM (14.80%) is better than 86.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 9.39%.
- The 3 year average ROIC (11.89%) for 1RHM is below the current ROIC(14.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 17.96% | ||
| ROIC | 14.8% |
ROA(3y)5.14%
ROA(5y)3.76%
ROE(3y)16.88%
ROE(5y)12.25%
ROIC(3y)11.89%
ROIC(5y)10.79%
1.3 Margins
- 1RHM has a better Profit Margin (7.63%) than 67.92% of its industry peers.
- In the last couple of years the Profit Margin of 1RHM has grown nicely.
- With an excellent Operating Margin value of 13.41%, 1RHM belongs to the best of the industry, outperforming 81.13% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1RHM has grown nicely.
- 1RHM's Gross Margin of 52.12% is amongst the best of the industry. 1RHM outperforms 83.02% of its industry peers.
- In the last couple of years the Gross Margin of 1RHM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.41% | ||
| PM (TTM) | 7.63% | ||
| GM | 52.12% |
OM growth 3Y9.06%
OM growth 5Y12.72%
PM growth 3Y12.65%
PM growth 5Y6.54%
GM growth 3Y-1.05%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1RHM is still creating some value.
- The number of shares outstanding for 1RHM remains at a similar level compared to 1 year ago.
- 1RHM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1RHM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.96 indicates that 1RHM is not in any danger for bankruptcy at the moment.
- 1RHM has a Altman-Z score of 5.96. This is amongst the best in the industry. 1RHM outperforms 84.91% of its industry peers.
- 1RHM has a debt to FCF ratio of 25.05. This is a negative value and a sign of low solvency as 1RHM would need 25.05 years to pay back of all of its debts.
- 1RHM has a Debt to FCF ratio of 25.05. This is in the lower half of the industry: 1RHM underperforms 66.04% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that 1RHM is not too dependend on debt financing.
- The Debt to Equity ratio of 1RHM (0.26) is better than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.96 |
ROIC/WACC1.73
WACC8.54%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that 1RHM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.14, 1RHM is in line with its industry, outperforming 41.51% of the companies in the same industry.
- A Quick Ratio of 0.49 indicates that 1RHM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.49, 1RHM is not doing good in the industry: 79.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 38.07% over the past year.
- 1RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
- Looking at the last year, 1RHM shows a very strong growth in Revenue. The Revenue has grown by 24.61%.
- 1RHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.29% yearly.
EPS 1Y (TTM)38.07%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%8.52%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
3.2 Future
- Based on estimates for the next years, 1RHM will show a very strong growth in Earnings Per Share. The EPS will grow by 47.18% on average per year.
- The Revenue is expected to grow by 30.02% on average over the next years. This is a very strong growth
EPS Next Y71.24%
EPS Next 2Y62.85%
EPS Next 3Y58.18%
EPS Next 5Y47.18%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.02%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- 1RHM is valuated quite expensively with a Price/Earnings ratio of 92.25.
- 1RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 66.04% of the companies in the same industry.
- 1RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- 1RHM is valuated quite expensively with a Price/Forward Earnings ratio of 42.23.
- 62.26% of the companies in the same industry are cheaper than 1RHM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1RHM to the average of the S&P500 Index (25.57), we can say 1RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.25 | ||
| Fwd PE | 42.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1RHM is valued a bit more expensive than 71.70% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1RHM indicates a slightly more expensive valuation: 1RHM is more expensive than 67.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 840.8 | ||
| EV/EBITDA | 42.65 |
4.3 Compensation for Growth
- 1RHM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1RHM has an outstanding profitability rating, which may justify a higher PE ratio.
- 1RHM's earnings are expected to grow with 58.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)6.03
EPS Next 2Y62.85%
EPS Next 3Y58.18%
5. Dividend
5.1 Amount
- 1RHM has a yearly dividend return of 0.45%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, 1RHM has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, 1RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
- The dividend of 1RHM is nicely growing with an annual growth rate of 22.25%!
Dividend Growth(5Y)22.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1RHM pays out 43.98% of its income as dividend. This is a bit on the high side, but may be sustainable.
- 1RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.98%
EPS Next 2Y62.85%
EPS Next 3Y58.18%
RHEINMETALL AG / 1RHM.MI FAQ
What is the ChartMill fundamental rating of RHEINMETALL AG (1RHM.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1RHM.MI.
Can you provide the valuation status for RHEINMETALL AG?
ChartMill assigns a valuation rating of 2 / 10 to RHEINMETALL AG (1RHM.MI). This can be considered as Overvalued.
How profitable is RHEINMETALL AG (1RHM.MI) stock?
RHEINMETALL AG (1RHM.MI) has a profitability rating of 8 / 10.
What is the financial health of RHEINMETALL AG (1RHM.MI) stock?
The financial health rating of RHEINMETALL AG (1RHM.MI) is 3 / 10.
What is the earnings growth outlook for RHEINMETALL AG?
The Earnings per Share (EPS) of RHEINMETALL AG (1RHM.MI) is expected to grow by 71.24% in the next year.