RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1RHM - DE0007030009 - Common Stock
1842 EUR
-4 (-0.22%)
Overall 1RHM gets a fundamental rating of 6 out of 10. We evaluated 1RHM against 53 industry peers in the Aerospace & Defense industry. While 1RHM belongs to the best of the industry regarding profitability, 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
- 1RHM had positive earnings in the past year.
- In the past year 1RHM had a positive cash flow from operations.
- 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
- 1RHM has a Return On Assets of 5.36%. This is in the better half of the industry: 1RHM outperforms 73.58% of its industry peers.
- The Return On Equity of 1RHM (17.96%) is better than 67.92% of its industry peers.
- With an excellent Return On Invested Capital value of 14.80%, 1RHM belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
- 1RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.24%.
- 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 Profit Margin of 7.63%. This is in the better half of the industry: 1RHM outperforms 64.15% of its industry peers.
- 1RHM's Profit Margin has improved in the last couple of years.
- 1RHM has a Operating Margin of 13.41%. This is amongst the best in the industry. 1RHM outperforms 81.13% of its industry peers.
- 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.
- Compared to 1 year ago, 1RHM has about the same amount of shares outstanding.
- 1RHM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1RHM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.15 indicates that 1RHM is not in any danger for bankruptcy at the moment.
- 1RHM has a Altman-Z score of 6.15. This is amongst the best in the industry. 1RHM outperforms 84.91% of its industry peers.
- The Debt to FCF ratio of 1RHM is 25.05, which is on the high side as it means it would take 1RHM, 25.05 years of fcf income to pay off all of its debts.
- 1RHM's Debt to FCF ratio of 25.05 is on the low side compared to the rest of the industry. 1RHM is outperformed by 64.15% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that 1RHM is not too dependend on debt financing.
- 1RHM has a better Debt to Equity ratio (0.26) than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.73
WACC8.54%
2.3 Liquidity
- 1RHM has a Current Ratio of 1.14. This is a normal value and indicates that 1RHM is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of 1RHM (1.14) is comparable to the rest of the industry.
- A Quick Ratio of 0.49 indicates that 1RHM may have some problems paying its short term obligations.
- 1RHM's Quick ratio of 0.49 is on the low side compared to the rest of the industry. 1RHM is outperformed by 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- 1RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.07%, which is quite impressive.
- 1RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
- The Revenue has grown by 24.61% in the past year. This is a very strong growth!
- Measured over the past years, 1RHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
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
- 1RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.18% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 95.84, the valuation of 1RHM can be described as expensive.
- 66.04% of the companies in the same industry are cheaper than 1RHM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. 1RHM is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 43.87 indicates a quite expensive valuation of 1RHM.
- 1RHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 62.26% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 1RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.84 | ||
| Fwd PE | 43.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1RHM indicates a slightly more expensive valuation: 1RHM is more expensive than 71.70% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1RHM is valued a bit more expensive than 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 873.52 | ||
| EV/EBITDA | 44.37 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of 1RHM may justify a higher PE ratio.
- A more expensive valuation may be justified as 1RHM's earnings are expected to grow with 58.18% in the coming years.
PEG (NY)1.35
PEG (5Y)6.27
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.
- With a Dividend Yield of 0.45, 1RHM pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- The dividend of 1RHM is growing, but earnings are growing more, so the dividend growth is 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 4 / 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.