RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1797 EUR
-48 (-2.6%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 53 industry peers in the Aerospace & Defense industry. While RHM belongs to the best of the industry regarding profitability, there are concerns on its financial health. RHM is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- In the past year RHM was profitable.
- RHM had a positive operating cash flow in the past year.
- RHM had positive earnings in 4 of the past 5 years.
- 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 5.36%, RHM is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
- The Return On Equity of RHM (17.96%) is better than 66.04% of its industry peers.
- RHM has a better Return On Invested Capital (14.80%) than 86.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.24%.
- The last Return On Invested Capital (14.80%) for RHM 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
- RHM has a Profit Margin of 7.63%. This is in the better half of the industry: RHM outperforms 62.26% of its industry peers.
- RHM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 13.41%, RHM is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of RHM has grown nicely.
- The Gross Margin of RHM (52.12%) is better than 81.13% of its industry peers.
- RHM's Gross Margin has been stable in the last couple of years.
| 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) just above the Cost of Capital (WACC), RHM is creating some value.
- The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, RHM has more shares outstanding
- Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
- RHM has an Altman-Z score of 6.14. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- RHM has a better Altman-Z score (6.14) than 86.79% of its industry peers.
- 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.
- The Debt to FCF ratio of RHM (25.05) is worse than 66.04% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
- RHM has a better Debt to Equity ratio (0.26) than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.14 |
ROIC/WACC1.73
WACC8.54%
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.
- With a Current ratio value of 1.14, RHM is not doing good in the industry: 60.38% of the companies in the same industry are doing better.
- A Quick Ratio of 0.49 indicates that RHM may have some problems paying its short term obligations.
- RHM 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
- 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.
- The Revenue has grown by 24.61% in the past year. This is a very strong growth!
- 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
- RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.18% yearly.
- Based on estimates for the next years, RHM will show a very strong growth in Revenue. The Revenue will grow by 30.02% on average per year.
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
- The Price/Earnings ratio is 93.50, which means the current valuation is very expensive for RHM.
- Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 67.92% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (28.60), we can say RHM is valued expensively.
- A Price/Forward Earnings ratio of 42.80 indicates a quite expensive valuation of RHM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 64.15% of the companies listed in the same industry.
- RHM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.5 | ||
| Fwd PE | 42.8 |
4.2 Price Multiples
- RHM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RHM is more expensive than 73.58% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 852.18 | ||
| EV/EBITDA | 44.35 |
4.3 Compensation for Growth
- RHM's 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 58.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)6.11
EPS Next 2Y62.85%
EPS Next 3Y58.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.45%, RHM is not a good candidate for dividend investing.
- RHM'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, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 2Y62.85%
EPS Next 3Y58.18%
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 3 / 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%.