RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1795.5 EUR
-49.5 (-2.68%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 53 industry peers in the Aerospace & Defense industry. RHM scores excellent on profitability, but there are concerns on its financial health. RHM is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- RHM had positive earnings in the past year.
- 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
- RHM has a better Return On Assets (5.36%) than 71.70% of its industry peers.
- Looking at the Return On Equity, with a value of 17.96%, RHM is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.80%, RHM belongs to the top of the industry, outperforming 86.79% 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 9.24%.
- 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
- The Profit Margin of RHM (7.63%) is better than 62.26% of its industry peers.
- In the last couple of years the Profit Margin of RHM has grown nicely.
- RHM has a Operating Margin of 13.41%. This is in the better half of the industry: RHM outperforms 79.25% of its industry peers.
- In the last couple of years the Operating Margin of RHM has grown nicely.
- RHM has a better Gross Margin (52.12%) 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RHM is still creating some value.
- RHM has about the same amout of shares outstanding than it did 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 6.14. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.14, RHM belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
- 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 Debt to FCF ratio of 25.05. This is in the lower half of the industry: RHM underperforms 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.
- The Debt to Equity ratio of RHM (0.26) is better 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
- A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
- RHM's Current ratio of 1.14 is on the low side compared to the rest of the industry. RHM is outperformed by 60.38% of its industry peers.
- 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: 81.13% 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.
- RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
- Looking at the last year, RHM shows a very strong growth in Revenue. 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
- 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.
- The Revenue is expected to grow by 30.02% on average over the next years. This is a very strong growth
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
- 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.
- 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
- With a Price/Earnings ratio of 93.42, RHM can be considered very expensive at the moment.
- RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 67.92% of the companies in the same industry.
- RHM is valuated expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 42.77 indicates a quite expensive valuation of RHM.
- Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than the industry average as 64.15% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.42 | ||
| Fwd PE | 42.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than 73.58% 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 69.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 851.47 | ||
| EV/EBITDA | 44.35 |
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 58.18% in the coming years.
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.
- Compared to an average industry Dividend Yield of 0.74, RHM has a dividend in line with its industry peers.
- With a Dividend Yield of 0.45, RHM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 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%.