RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - FRA:RHM - DE0007030009 - Common Stock
1896.5 EUR
+16 (+0.85%)
Taking everything into account, RHM scores 6 out of 10 in our fundamental rating. RHM was compared to 42 industry peers in the Aerospace & Defense industry. While RHM has a great profitability rating, there are some minor concerns on its financial health. RHM is valued quite expensive, but it does show an excellent growth. These ratings could make RHM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year RHM was profitable.
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
Looking at the Return On Assets, with a value of 5.63%, RHM is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Return On Equity of RHM (18.45%) is better than 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.83%, RHM belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.46%.
The last Return On Invested Capital (14.83%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 18.45% | ||
| ROIC | 14.83% |
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
Looking at the Profit Margin, with a value of 7.70%, RHM is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Profit Margin of RHM has grown nicely.
Looking at the Operating Margin, with a value of 13.50%, RHM is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
RHM's Operating Margin has improved in the last couple of years.
The Gross Margin of RHM (51.30%) is better than 75.61% of its industry peers.
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 | 13.5% | ||
| PM (TTM) | 7.7% | ||
| GM | 51.3% |
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 well above the Cost of Capital (WACC), so RHM is creating value.
Compared to 1 year ago, RHM has about the same amount of shares outstanding.
Compared to 5 years ago, RHM has more shares outstanding
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
RHM has an Altman-Z score of 6.68. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
RHM has a better Altman-Z score (6.68) than 95.12% of its industry peers.
RHM has a debt to FCF ratio of 5.20. This is a neutral value as RHM would need 5.20 years to pay back of all of its debts.
The Debt to FCF ratio of RHM (5.20) is comparable to the rest of the industry.
RHM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, RHM is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 6.68 |
ROIC/WACC2.06
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.15 indicates that RHM should not have too much problems paying its short term obligations.
RHM has a Current ratio (1.15) which is comparable to the rest of the industry.
RHM has a Quick Ratio of 1.15. This is a bad value and indicates that RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.47, RHM is doing worse than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.85% over the past year.
Measured over the past years, RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.24%.
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)43.85%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%156.76%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
3.2 Future
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.06% yearly.
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.11% yearly.
EPS Next Y83.96%
EPS Next 2Y66.06%
EPS Next 3Y60.16%
EPS Next 5Y50.06%
Revenue Next Year26.46%
Revenue Next 2Y30.55%
Revenue Next 3Y32.13%
Revenue Next 5Y31.11%
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
RHM is valuated quite expensively with a Price/Earnings ratio of 100.03.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 70.73% of the companies in the same industry.
RHM'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 43.45, the valuation of RHM can be described as expensive.
75.61% of the companies in the same industry are cheaper than RHM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.03 | ||
| Fwd PE | 43.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued more expensive than 82.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 75.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 225.71 | ||
| EV/EBITDA | 46.29 |
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.
A more expensive valuation may be justified as RHM's earnings are expected to grow with 60.16% in the coming years.
PEG (NY)1.19
PEG (5Y)6.54
EPS Next 2Y66.06%
EPS Next 3Y60.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, RHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.16, RHM has a dividend in line with its industry peers.
With a Dividend Yield of 0.47, RHM pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of RHM is nicely growing with an annual growth rate of 22.25%!
Dividend Growth(5Y)22.25%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
44.89% of the earnings are spent on dividend by RHM. 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.
DP44.89%
EPS Next 2Y66.06%
EPS Next 3Y60.16%
FRA:RHM (9/12/2025, 7:00:00 PM)
1896.5
+16 (+0.85%)
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 Cap87.13B
Analysts83.81
Price Target2105.69 (11.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP44.89%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.47%
Min EPS beat(2)-17.83%
Max EPS beat(2)-3.11%
EPS beat(4)0
Avg EPS beat(4)-16.25%
Min EPS beat(4)-23.39%
Max EPS beat(4)-3.11%
EPS beat(8)1
Avg EPS beat(8)-20.21%
EPS beat(12)3
Avg EPS beat(12)-10.58%
EPS beat(16)5
Avg EPS beat(16)-8.89%
Revenue beat(2)1
Avg Revenue beat(2)3.75%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)11.46%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)3
Avg Revenue beat(12)-0.94%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)6.2%
PT rev (3m)32.31%
EPS NQ rev (1m)-29.24%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.79%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)-10.54%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.03 | ||
| Fwd PE | 43.45 | ||
| P/S | 8.16 | ||
| P/FCF | 225.71 | ||
| P/OCF | 70.38 | ||
| P/B | 19.56 | ||
| P/tB | 50.16 | ||
| EV/EBITDA | 46.29 |
EPS(TTM)18.96
EY1%
EPS(NY)43.65
Fwd EY2.3%
FCF(TTM)8.4
FCFY0.44%
OCF(TTM)26.95
OCFY1.42%
SpS232.28
BVpS96.97
TBVpS37.81
PEG (NY)1.19
PEG (5Y)6.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 18.45% | ||
| ROCE | 19.75% | ||
| ROIC | 14.83% | ||
| ROICexc | 15.58% | ||
| ROICexgc | 25.6% | ||
| OM | 13.5% | ||
| PM (TTM) | 7.7% | ||
| GM | 51.3% | ||
| FCFM | 3.62% |
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 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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 184.82% | ||
| Cap/Sales | 7.98% | ||
| Interest Coverage | 480.33 | ||
| Cash Conversion | 65.09% | ||
| Profit Quality | 46.96% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 6.68 |
F-Score6
WACC7.19%
ROIC/WACC2.06
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)43.85%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%156.76%
EPS Next Y83.96%
EPS Next 2Y66.06%
EPS Next 3Y60.16%
EPS Next 5Y50.06%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
Revenue Next Year26.46%
Revenue Next 2Y30.55%
Revenue Next 3Y32.13%
Revenue Next 5Y31.11%
EBIT growth 1Y45.12%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y44.76%
FCF growth 1Y208.8%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y143.7%
OCF growth 3Y35.59%
OCF growth 5Y23.4%