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
1RHM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Aerospace & Defense industry. While 1RHM belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1RHM is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year 1RHM was profitable.
- 1RHM had a positive operating cash flow in the past year.
- Of the past 5 years 1RHM 4 years were profitable.
- 1RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1RHM has a Return On Assets of 5.36%. This is in the better half of the industry: 1RHM outperforms 71.70% of its industry peers.
- 1RHM has a better Return On Equity (17.96%) than 66.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.80%, 1RHM belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 9.24%.
- The last Return On Invested Capital (14.80%) for 1RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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's Profit Margin of 7.63% is fine compared to the rest of the industry. 1RHM outperforms 62.26% of its industry peers.
- 1RHM's Profit Margin has improved in the last couple of years.
- 1RHM's Operating Margin of 13.41% is fine compared to the rest of the industry. 1RHM outperforms 79.25% of its industry peers.
- 1RHM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 52.12%, 1RHM belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
- 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
- 1RHM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- 1RHM has about the same amout of shares outstanding than it did 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 6.08. This indicates that 1RHM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1RHM (6.08) is better than 86.79% 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.
- With a Debt to FCF ratio value of 25.05, 1RHM is not doing good in the industry: 66.04% of the companies in the same industry are doing better.
- 1RHM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.26, 1RHM is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.08 |
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 worse than 60.38% of its industry peers.
- 1RHM has a Quick Ratio of 1.14. This is a bad value and indicates that 1RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1RHM has a worse Quick ratio (0.49) than 81.13% of its industry peers.
| 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
- 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.
- 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
- With a Price/Earnings ratio of 92.25, 1RHM can be considered very expensive at the moment.
- 67.92% of the companies in the same industry are cheaper than 1RHM, based on the Price/Earnings ratio.
- 1RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 42.23 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 64.15% of the companies in the same industry.
- 1RHM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.25 | ||
| Fwd PE | 42.23 |
4.2 Price Multiples
- 73.58% of the companies in the same industry are cheaper than 1RHM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 1RHM is valued a bit more expensive than 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 840.8 | ||
| EV/EBITDA | 43.72 |
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
- With a yearly dividend of 0.45%, 1RHM is not a good candidate for dividend investing.
- 1RHM's Dividend Yield is comparable with the industry average which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 43.98% of the earnings are spent on dividend by 1RHM. 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.