RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
1RHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. 1RHM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1RHM is valued quite expensively, but it does show have an excellent growth rating. With these ratings, 1RHM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1RHM was profitable.
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 5.14%. This is in the better half of the industry: 1RHM outperforms 79.07% of its industry peers.
1RHM has a Return On Equity of 16.85%. This is in the better half of the industry: 1RHM outperforms 69.77% of its industry peers.
1RHM's Return On Invested Capital of 14.50% is amongst the best of the industry. 1RHM outperforms 86.05% of its industry peers.
1RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 8.70%.
The last Return On Invested Capital (14.50%) for 1RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 16.85% | ||
| ROIC | 14.5% |
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 7.19%. This is in the better half of the industry: 1RHM outperforms 69.77% of its industry peers.
In the last couple of years the Profit Margin of 1RHM has grown nicely.
1RHM has a Operating Margin of 13.85%. This is amongst the best in the industry. 1RHM outperforms 86.05% of its industry peers.
In the last couple of years the Operating Margin of 1RHM has grown nicely.
With an excellent Gross Margin value of 50.81%, 1RHM belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
1RHM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 7.19% | ||
| GM | 50.81% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1RHM is creating value.
Compared to 1 year ago, 1RHM has about the same amount of shares outstanding.
The number of shares outstanding for 1RHM has been increased compared to 5 years ago.
The debt/assets ratio for 1RHM is higher compared to a year ago.
2.2 Solvency
1RHM has an Altman-Z score of 6.48. This indicates that 1RHM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.48, 1RHM belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
The Debt to FCF ratio of 1RHM is 1.16, which is an excellent value as it means it would take 1RHM, only 1.16 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.16, 1RHM belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that 1RHM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.34, 1RHM is doing good in the industry, outperforming 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.48 |
ROIC/WACC2.04
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.21 indicates that 1RHM should not have too much problems paying its short term obligations.
1RHM has a Current ratio of 1.21. This is comparable to the rest of the industry: 1RHM outperforms 48.84% of its industry peers.
1RHM has a Quick Ratio of 1.21. This is a bad value and indicates that 1RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.57, 1RHM is doing worse than 76.74% of the companies in the same industry.
The current and quick ratio evaluation for 1RHM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
1RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
Measured over the past years, 1RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
Looking at the last year, 1RHM shows a very strong growth in Revenue. The Revenue has grown by 41.65%.
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)28.3%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%73.64%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
3.2 Future
The Earnings Per Share is expected to grow by 47.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 29.04% on average over the next years. This is a very strong growth
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y29.04%
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
With a Price/Earnings ratio of 111.18, 1RHM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1RHM is valued a bit more expensive than the industry average as 72.09% of the companies are valued more cheaply.
1RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 41.77, the valuation of 1RHM can be described as expensive.
Based on the Price/Forward Earnings ratio, 1RHM is valued a bit more expensive than the industry average as 67.44% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.18 | ||
| Fwd PE | 41.77 |
4.2 Price Multiples
76.74% of the companies in the same industry are cheaper than 1RHM, based on the Enterprise Value to EBITDA ratio.
1RHM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.58 | ||
| EV/EBITDA | 44.79 |
4.3 Compensation for Growth
1RHM's 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 57.98% in the coming years.
PEG (NY)1.25
PEG (5Y)7.27
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, 1RHM is not a good candidate for dividend investing.
1RHM's Dividend Yield is slightly below the industry average, which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.37, 1RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
On average, the dividend of 1RHM grows each year by 22.25%, which is quite nice.
Dividend Growth(5Y)22.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.93% of the earnings are spent on dividend by 1RHM. This is a low number and sustainable payout ratio.
The dividend of 1RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
BIT:1RHM (7/9/2025, 9:01:00 AM)
1850
+24.5 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.64%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap84.47B
Analysts81.82
Price Target1888.81 (2.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP32.93%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.61%
Min EPS beat(2)-23.39%
Max EPS beat(2)-17.83%
EPS beat(4)0
Avg EPS beat(4)-29.4%
Min EPS beat(4)-55.72%
Max EPS beat(4)-17.83%
EPS beat(8)1
Avg EPS beat(8)-21.55%
EPS beat(12)3
Avg EPS beat(12)-12.4%
EPS beat(16)5
Avg EPS beat(16)-10.06%
Revenue beat(2)1
Avg Revenue beat(2)2.67%
Min Revenue beat(2)-6.12%
Max Revenue beat(2)11.46%
Revenue beat(4)3
Avg Revenue beat(4)3.15%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)3
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.78%
PT rev (1m)18.17%
PT rev (3m)25.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.18 | ||
| Fwd PE | 41.77 | ||
| P/S | 8.06 | ||
| P/FCF | 57.58 | ||
| P/OCF | 37.59 | ||
| P/B | 18.9 | ||
| P/tB | 50.01 | ||
| EV/EBITDA | 44.79 |
EPS(TTM)16.64
EY0.9%
EPS(NY)44.29
Fwd EY2.39%
FCF(TTM)32.13
FCFY1.74%
OCF(TTM)49.21
OCFY2.66%
SpS229.41
BVpS97.9
TBVpS36.99
PEG (NY)1.25
PEG (5Y)7.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 16.85% | ||
| ROCE | 19.31% | ||
| ROIC | 14.5% | ||
| ROICexc | 16.95% | ||
| ROICexgc | 29.86% | ||
| OM | 13.85% | ||
| PM (TTM) | 7.19% | ||
| GM | 50.81% | ||
| FCFM | 14% |
ROA(3y)5.14%
ROA(5y)3.76%
ROE(3y)16.88%
ROE(5y)12.25%
ROIC(3y)11.89%
ROIC(5y)10.79%
ROICexc(3y)13.93%
ROICexc(5y)13.29%
ROICexgc(3y)21.41%
ROICexgc(5y)19.25%
ROCE(3y)16.31%
ROCE(5y)14.66%
ROICexcg growth 3Y12.63%
ROICexcg growth 5Y16.71%
ROICexc growth 3Y2.66%
ROICexc growth 5Y9.71%
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%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 183.96% | ||
| Cap/Sales | 7.45% | ||
| Interest Coverage | 725.5 | ||
| Cash Conversion | 119.84% | ||
| Profit Quality | 194.82% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.48 |
F-Score6
WACC7.12%
ROIC/WACC2.04
Cap/Depr(3y)150.34%
Cap/Depr(5y)120.05%
Cap/Sales(3y)6.17%
Cap/Sales(5y)5.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%73.64%
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y29.04%
EBIT growth 1Y66.21%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y41.54%
FCF growth 1Y762.94%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y323.96%
OCF growth 3Y35.59%
OCF growth 5Y23.4%