RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1900 EUR
+49 (+2.65%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 47 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.
RHM had positive earnings in 4 of the past 5 years.
RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RHM (5.36%) is better than 74.47% of its industry peers.
The Return On Equity of RHM (17.96%) is better than 70.21% of its industry peers.
RHM has a Return On Invested Capital of 14.80%. This is amongst the best in the industry. RHM outperforms 89.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHM is above the industry average of 9.17%.
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 has a better Profit Margin (7.63%) than 68.09% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
Looking at the Operating Margin, with a value of 13.41%, RHM belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
In the last couple of years the Operating Margin of RHM has grown nicely.
RHM has a Gross Margin of 52.12%. This is amongst the best in the industry. RHM outperforms 80.85% 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 | 13.41% | ||
| 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.
The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
RHM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.16 indicates that RHM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.16, RHM belongs to the top of the industry, outperforming 89.36% 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 has a Debt to FCF ratio of 25.05. This is in the lower half of the industry: RHM underperforms 68.09% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
RHM has a Debt to Equity ratio of 0.26. This is in the better half of the industry: RHM outperforms 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.91
WACC7.76%
2.3 Liquidity
RHM has a Current Ratio of 1.14. This is a normal value and indicates that RHM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, RHM is in line with its industry, outperforming 44.68% of the companies in the same industry.
RHM has a Quick Ratio of 1.14. This is a bad value and indicates that RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.49, RHM is not doing good in the industry: 76.60% 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
RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.07%, which is quite impressive.
RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.61%.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 47.46% on average over the next years. This is a very strong growth
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
RHM is valuated quite expensively with a Price/Earnings ratio of 98.86.
Compared to the rest of the industry, the Price/Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 65.96% of the companies listed in the same industry.
RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 44.92, which means the current valuation is very expensive for RHM.
68.09% 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 23.88, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.86 | ||
| Fwd PE | 44.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than 74.47% 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 68.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 901.03 | ||
| EV/EBITDA | 44.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RHM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RHM's earnings are expected to grow with 59.11% in the coming years.
PEG (NY)1.31
PEG (5Y)6.46
EPS Next 2Y63.47%
EPS Next 3Y59.11%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.52%, which is pretty low.
RHM's Dividend Yield is comparable with the industry average which is at 0.87.
With a Dividend Yield of 0.52, RHM pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
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 (1/9/2026, 7:00:00 PM)
1900
+49 (+2.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners45.42%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap87.40B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts81.54
Price Target2237.17 (17.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)-2.16%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.86 | ||
| Fwd PE | 44.92 | ||
| P/S | 7.95 | ||
| P/FCF | 901.03 | ||
| P/OCF | 86.45 | ||
| P/B | 18.71 | ||
| P/tB | 45.86 | ||
| EV/EBITDA | 44.49 |
EPS(TTM)19.22
EY1.01%
EPS(NY)42.3
Fwd EY2.23%
FCF(TTM)2.11
FCFY0.11%
OCF(TTM)21.98
OCFY1.16%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.31
PEG (5Y)6.46
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 | 6.16 |
F-Score5
WACC7.76%
ROIC/WACC1.91
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 for RHM 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.
Can you provide the dividend sustainability for RHM stock?
The dividend rating of RHEINMETALL AG (RHM.DE) is 4 / 10 and the dividend payout ratio is 43.98%.