RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1850 EUR
+59 (+3.29%)
Taking everything into account, RHM scores 6 out of 10 in our fundamental rating. RHM was compared to 53 industry peers in the Aerospace & Defense industry. While RHM has a great profitability rating, there are quite some 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.
- Of the past 5 years RHM 4 years were profitable.
- 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 71.70% of its industry peers.
- RHM has a better Return On Equity (17.96%) than 66.04% of its industry peers.
- With an excellent Return On Invested Capital value of 14.80%, RHM belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
- RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.24%.
- 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 62.26% of its industry peers.
- RHM's Profit Margin has improved in the last couple of years.
- RHM has a better Operating Margin (13.41%) than 79.25% of its industry peers.
- In the last couple of years the Operating Margin of RHM has grown nicely.
- Looking at the Gross Margin, with a value of 52.12%, RHM belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
- 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
- RHM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
- RHM has an Altman-Z score of 6.01. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RHM (6.01) is better than 86.79% of its industry peers.
- The Debt to FCF ratio of RHM is 25.05, which is on the high side as it means it would take RHM, 25.05 years of fcf income to pay off all of its debts.
- RHM has a worse Debt to FCF ratio (25.05) than 66.04% of its industry peers.
- RHM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- RHM's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. RHM outperforms 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.01 |
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.
- The Quick ratio of RHM (0.49) is worse 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.
- The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
- The Revenue has grown by 24.61% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, RHM will show a very strong growth in Earnings Per Share. The EPS will grow by 47.18% on average per year.
- RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.02% yearly.
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
- RHM is valuated quite expensively with a Price/Earnings ratio of 96.25.
- 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 (27.25), we can say RHM is valued expensively.
- With a Price/Forward Earnings ratio of 44.06, RHM can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 64.15% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (25.98), we can say RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.25 | ||
| Fwd PE | 44.06 |
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 73.58% of the companies listed 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 69.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 877.32 | ||
| EV/EBITDA | 43.08 |
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.
- A more expensive valuation may be justified as RHM's earnings are expected to grow with 58.18% in the coming years.
PEG (NY)1.35
PEG (5Y)6.29
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
- 43.98% of the earnings are spent on dividend by RHM. This is a bit on the high side, but may be sustainable.
- The dividend of RHM is growing, but earnings are growing more, so the dividend growth is 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%.