RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1561 EUR
+35 (+2.29%)
Overall RHM gets a fundamental rating of 6 out of 10. We evaluated RHM against 45 industry peers in the Aerospace & Defense industry. RHM has an excellent profitability rating, but there are some minor concerns on its financial health. RHM shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
RHM had positive earnings in the past year.
In the past year RHM had a positive cash flow from operations.
Of the past 5 years RHM 4 years were profitable.
In the past 5 years RHM always reported a positive cash flow from operatings.
1.2 Ratios
RHM has a Return On Assets of 5.36%. This is in the better half of the industry: RHM outperforms 68.89% of its industry peers.
RHM has a better Return On Equity (17.96%) than 64.44% of its industry peers.
RHM's Return On Invested Capital of 14.80% is amongst the best of the industry. RHM outperforms 86.67% of its industry peers.
RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.26%.
The 3 year average ROIC (11.89%) for RHM 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
RHM's Profit Margin of 7.63% is fine compared to the rest of the industry. RHM outperforms 66.67% of its industry peers.
RHM's Profit Margin has improved in the last couple of years.
RHM's Operating Margin of 13.41% is fine compared to the rest of the industry. RHM outperforms 77.78% of its industry peers.
RHM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 52.12%, RHM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of RHM 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHM is creating value.
RHM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RHM has more shares outstanding
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.34 indicates that RHM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.34, RHM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
RHM has a debt to FCF ratio of 25.05. This is a negative value and a sign of low solvency as RHM would need 25.05 years to pay back of all of its debts.
RHM's Debt to FCF ratio of 25.05 is on the low side compared to the rest of the industry. RHM is outperformed by 73.33% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
The Debt to Equity ratio of RHM (0.26) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.92
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, RHM perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that RHM may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, RHM is not doing good in the industry: 82.22% 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.
The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.61%.
RHM 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
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.46% yearly.
Based on estimates for the next years, RHM will show a very strong growth in Revenue. The Revenue will grow by 30.08% on average per year.
EPS Next Y75.28%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
EPS Next 5Y47.46%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.08%
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 81.22, the valuation of RHM can be described as expensive.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 71.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, RHM is valued quite expensively.
A Price/Forward Earnings ratio of 36.90 indicates a quite expensive valuation of RHM.
66.67% of the companies in the same industry are cheaper than RHM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.22 | ||
| Fwd PE | 36.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 73.33% of the companies listed in the same industry.
RHM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RHM is more expensive than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 740.27 | ||
| EV/EBITDA | 36.85 |
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 RHM may justify a higher PE ratio.
RHM's earnings are expected to grow with 59.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)5.31
EPS Next 2Y63.47%
EPS Next 3Y59.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, RHM is not a good candidate for dividend investing.
In the last 3 months the price of RHM has falen by -22.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.90, RHM has a dividend in line with its industry peers.
With a Dividend Yield of 0.53, RHM pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of RHM grows each year by 22.25%, which is quite nice.
Dividend Growth(5Y)22.25%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
RHM pays out 43.98% of its income as dividend. This is a bit on the high side, but may be sustainable.
RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.98%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
FRA:RHM (12/30/2025, 2:06:30 PM)
1561
+35 (+2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners45.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap71.81B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts81.54
Price Target2237.17 (43.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP43.98%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.21%
Min EPS beat(2)-23.31%
Max EPS beat(2)-3.11%
EPS beat(4)0
Avg EPS beat(4)-16.91%
Min EPS beat(4)-23.39%
Max EPS beat(4)-3.11%
EPS beat(8)0
Avg EPS beat(8)-24.24%
EPS beat(12)2
Avg EPS beat(12)-13.02%
EPS beat(16)4
Avg EPS beat(16)-12%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-2.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-0.92%
PT rev (1m)1.4%
PT rev (3m)5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.75%
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.22 | ||
| Fwd PE | 36.9 | ||
| P/S | 6.53 | ||
| P/FCF | 740.27 | ||
| P/OCF | 71.02 | ||
| P/B | 15.37 | ||
| P/tB | 37.67 | ||
| EV/EBITDA | 36.85 |
EPS(TTM)19.22
EY1.23%
EPS(NY)42.3
Fwd EY2.71%
FCF(TTM)2.11
FCFY0.14%
OCF(TTM)21.98
OCFY1.41%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.08
PEG (5Y)5.31
Graham Number209.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 17.96% | ||
| ROCE | 19.7% | ||
| ROIC | 14.8% | ||
| ROICexc | 15.99% | ||
| ROICexgc | 26.61% | ||
| OM | 13.41% | ||
| PM (TTM) | 7.63% | ||
| GM | 52.12% | ||
| FCFM | 0.88% |
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%
ROICexgc growth 3Y12.63%
ROICexgc growth 5Y8.12%
ROICexc growth 3Y2.66%
ROICexc growth 5Y3.61%
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-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 190.02% | ||
| Cap/Sales | 8.31% | ||
| Interest Coverage | 210.71 | ||
| Cash Conversion | 51.69% | ||
| Profit Quality | 11.56% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 5.34 |
F-Score5
WACC7.7%
ROIC/WACC1.92
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)38.07%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%8.52%
EPS Next Y75.28%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
EPS Next 5Y47.46%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.08%
EBIT growth 1Y32.76%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.21%
EBIT Next 3Y53.32%
EBIT Next 5Y43.29%
FCF growth 1Y44.78%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y120.26%
OCF growth 3Y35.59%
OCF growth 5Y23.4%
RHEINMETALL AG / RHM.DE FAQ
What is the fundamental rating for RHM stock?
ChartMill assigns a fundamental rating of 6 / 10 to RHM.DE.
What is the valuation status of RHEINMETALL AG (RHM.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to RHEINMETALL AG (RHM.DE). This can be considered as Overvalued.
Can you provide the profitability details for RHEINMETALL AG?
RHEINMETALL AG (RHM.DE) has a profitability rating of 8 / 10.
What is the financial health of RHEINMETALL AG (RHM.DE) stock?
The financial health rating of RHEINMETALL AG (RHM.DE) is 4 / 10.
Is the dividend of RHEINMETALL AG sustainable?
The dividend rating of RHEINMETALL AG (RHM.DE) is 4 / 10 and the dividend payout ratio is 43.98%.