RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
Taking everything into account, 1RHM scores 7 out of 10 in our fundamental rating. 1RHM was compared to 41 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 shows excellent growth, but is valued quite expensive already. These ratings could make 1RHM a good candidate for growth and quality investing.
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.
Of the past 5 years 1RHM 4 years were profitable.
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 4.55%, 1RHM is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.95%, 1RHM is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
1RHM's Return On Invested Capital of 13.07% is amongst the best of the industry. 1RHM outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 8.91%.
The last Return On Invested Capital (13.07%) for 1RHM is above the 3 year average (11.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 16.95% | ||
| ROIC | 13.07% |
ROA(3y)4.73%
ROA(5y)3.67%
ROE(3y)15%
ROE(5y)11.86%
ROIC(3y)11.07%
ROIC(5y)9.79%
1.3 Margins
1RHM's Profit Margin of 6.44% is fine compared to the rest of the industry. 1RHM outperforms 65.79% of its industry peers.
1RHM's Profit Margin has improved in the last couple of years.
1RHM has a better Operating Margin (12.59%) than 76.32% of its industry peers.
1RHM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 52.52%, 1RHM belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
1RHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 6.44% | ||
| GM | 52.52% |
OM growth 3Y13.32%
OM growth 5Y7.77%
PM growth 3YN/A
PM growth 5Y8.49%
GM growth 3Y2.48%
GM growth 5Y2.49%
2. Health
2.1 Basic Checks
1RHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1RHM remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1RHM has been increased compared to 5 years ago.
Compared to 1 year ago, 1RHM has a worse debt to assets ratio.
2.2 Solvency
1RHM has an Altman-Z score of 4.79. This indicates that 1RHM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1RHM (4.79) is better than 97.37% of its industry peers.
The Debt to FCF ratio of 1RHM is 2.05, which is a good value as it means it would take 1RHM, 2.05 years of fcf income to pay off all of its debts.
1RHM has a Debt to FCF ratio of 2.05. This is amongst the best in the industry. 1RHM outperforms 84.21% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that 1RHM is not too dependend on debt financing.
1RHM's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. 1RHM outperforms 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.84
WACC7.12%
2.3 Liquidity
1RHM has a Current Ratio of 1.25. This is a normal value and indicates that 1RHM is financially healthy and should not expect problems in meeting its short term obligations.
1RHM's Current ratio of 1.25 is fine compared to the rest of the industry. 1RHM outperforms 65.79% of its industry peers.
A Quick Ratio of 0.57 indicates that 1RHM may have some problems paying its short term obligations.
1RHM has a Quick ratio of 0.57. This is in the lower half of the industry: 1RHM underperforms 71.05% of its industry peers.
1RHM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.25 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.36% over the past year.
Measured over the past years, 1RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.77% on average per year.
1RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.18%.
1RHM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)21.36%
EPS 3YN/A
EPS 5Y12.77%
EPS Q2Q%32.03%
Revenue 1Y (TTM)27.18%
Revenue growth 3Y9.91%
Revenue growth 5Y3.14%
Sales Q2Q%39.53%
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 40.26% on average per year.
The Revenue is expected to grow by 28.27% on average over the next years. This is a very strong growth
EPS Next Y58.18%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
EPS Next 5Y40.26%
Revenue Next Year34.55%
Revenue Next 2Y30.54%
Revenue Next 3Y30.28%
Revenue Next 5Y28.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 80.57 indicates a quite expensive valuation of 1RHM.
Based on the Price/Earnings ratio, 1RHM is valued a bit more expensive than the industry average as 71.05% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.35. 1RHM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 37.74, 1RHM can be considered very expensive at the moment.
73.68% of the companies in the same industry are cheaper than 1RHM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.57 | ||
| Fwd PE | 37.74 |
4.2 Price Multiples
1RHM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 76.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1RHM is valued a bit more expensive than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.39 | ||
| EV/EBITDA | 34.22 |
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 48.54% in the coming years.
PEG (NY)1.38
PEG (5Y)6.31
EPS Next 2Y51.07%
EPS Next 3Y48.54%
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 1.20.
With a Dividend Yield of 0.48, 1RHM pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
On average, the dividend of 1RHM grows each year by 17.96%, which is quite nice.
Dividend Growth(5Y)17.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1RHM pays out 43.66% 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.
DP43.66%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
BIT:1RHM (3/7/2025, 7:00:00 PM)
1121.5
-74 (-6.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners41.98%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap49.68B
Analysts83.64
Price Target1052.84 (-6.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend4.31
Dividend Growth(5Y)17.96%
DP43.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.19%
Min EPS beat(2)-55.72%
Max EPS beat(2)-20.67%
EPS beat(4)0
Avg EPS beat(4)-31.58%
Min EPS beat(4)-55.72%
Max EPS beat(4)-0.72%
EPS beat(8)2
Avg EPS beat(8)-11.08%
EPS beat(12)4
Avg EPS beat(12)-10.37%
EPS beat(16)6
Avg EPS beat(16)-4.16%
Revenue beat(2)2
Avg Revenue beat(2)3.63%
Min Revenue beat(2)1.53%
Max Revenue beat(2)5.73%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-9.81%
Max Revenue beat(4)5.73%
Revenue beat(8)2
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-2.14%
PT rev (1m)37.44%
PT rev (3m)67.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.57 | ||
| Fwd PE | 37.74 | ||
| P/S | 5.63 | ||
| P/FCF | 56.39 | ||
| P/OCF | 34.01 | ||
| P/B | 14.82 | ||
| P/tB | 37.75 | ||
| EV/EBITDA | 34.22 |
EPS(TTM)13.92
EY1.24%
EPS(NY)29.72
Fwd EY2.65%
FCF(TTM)19.89
FCFY1.77%
OCF(TTM)32.98
OCFY2.94%
SpS199.23
BVpS75.67
TBVpS29.71
PEG (NY)1.38
PEG (5Y)6.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 16.95% | ||
| ROCE | 17.22% | ||
| ROIC | 13.07% | ||
| ROICexc | 14.11% | ||
| ROICexgc | 21.4% | ||
| OM | 12.59% | ||
| PM (TTM) | 6.44% | ||
| GM | 52.52% | ||
| FCFM | 9.98% |
ROA(3y)4.73%
ROA(5y)3.67%
ROE(3y)15%
ROE(5y)11.86%
ROIC(3y)11.07%
ROIC(5y)9.79%
ROICexc(3y)13.67%
ROICexc(5y)12.23%
ROICexgc(3y)18.83%
ROICexgc(5y)16.43%
ROCE(3y)14.89%
ROCE(5y)13.08%
ROICexcg growth 3Y13.23%
ROICexcg growth 5Y4.74%
ROICexc growth 3Y5.06%
ROICexc growth 5Y0.22%
OM growth 3Y13.32%
OM growth 5Y7.77%
PM growth 3YN/A
PM growth 5Y8.49%
GM growth 3Y2.48%
GM growth 5Y2.49%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 152.63% | ||
| Cap/Sales | 6.57% | ||
| Interest Coverage | 24.69 | ||
| Cash Conversion | 97.99% | ||
| Profit Quality | 155.11% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 4.79 |
F-Score5
WACC7.12%
ROIC/WACC1.84
Cap/Depr(3y)125.36%
Cap/Depr(5y)104.3%
Cap/Sales(3y)5.26%
Cap/Sales(5y)4.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.36%
EPS 3YN/A
EPS 5Y12.77%
EPS Q2Q%32.03%
EPS Next Y58.18%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
EPS Next 5Y40.26%
Revenue 1Y (TTM)27.18%
Revenue growth 3Y9.91%
Revenue growth 5Y3.14%
Sales Q2Q%39.53%
Revenue Next Year34.55%
Revenue Next 2Y30.54%
Revenue Next 3Y30.28%
Revenue Next 5Y28.27%
EBIT growth 1Y38.01%
EBIT growth 3Y24.55%
EBIT growth 5Y11.16%
EBIT Next Year94.82%
EBIT Next 3Y50.23%
EBIT Next 5Y41.02%
FCF growth 1Y640.49%
FCF growth 3Y16.71%
FCF growth 5YN/A
OCF growth 1Y842.58%
OCF growth 3Y17.85%
OCF growth 5Y25.15%