RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1519.5 EUR
-117.5 (-7.18%)
Overall RHM gets a fundamental rating of 6 out of 10. We evaluated RHM against 45 industry peers in the Aerospace & Defense industry. RHM scores excellent on profitability, but there are some minor 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 68.89% of its industry peers.
RHM has a Return On Equity of 17.96%. This is in the better half of the industry: RHM outperforms 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.80%, RHM belongs to the best of the industry, outperforming 88.89% 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 9.16%.
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's Profit Margin of 7.63% is fine compared to the rest of the industry. RHM outperforms 66.67% of its industry peers.
RHM's Profit Margin has improved in the last couple of years.
RHM has a Operating Margin of 13.41%. This is in the better half of the industry: RHM outperforms 80.00% of its industry peers.
RHM's Operating Margin has improved in the last couple of years.
RHM has a better Gross Margin (52.12%) than 75.56% 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 well above the Cost of Capital (WACC), so RHM is creating 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.
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
RHM has an Altman-Z score of 5.33. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
RHM has a better Altman-Z score (5.33) than 88.89% 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.
Looking at the Debt to FCF ratio, with a value of 25.05, RHM is doing worse than 71.11% of the companies in the same industry.
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 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.33 |
ROIC/WACC2.05
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
RHM has a Current ratio (1.14) which is comparable to the rest of the 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.
RHM has a worse Quick ratio (0.49) than 80.00% of its industry peers.
| 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.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.61%.
Measured over the past years, RHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
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
The Revenue is expected to grow by 30.08% on average over the next years. This is a very strong growth
EPS Next Y84.45%
EPS Next 2Y66.76%
EPS Next 3Y59.98%
EPS Next 5Y47.46%
Revenue Next Year26.03%
Revenue Next 2Y31.12%
Revenue Next 3Y32.16%
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
Based on the Price/Earnings ratio of 79.06, the valuation of RHM can be described as expensive.
RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 68.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (25.45), we can say RHM is valued expensively.
A Price/Forward Earnings ratio of 34.52 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 68.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, RHM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.06 | ||
| Fwd PE | 34.52 |
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 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 720.59 | ||
| EV/EBITDA | 36.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 59.98% in the coming years.
PEG (NY)0.94
PEG (5Y)5.17
EPS Next 2Y66.76%
EPS Next 3Y59.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, RHM is not a good candidate for dividend investing.
RHM's Dividend Yield is slightly below the industry average, which is at 1.20.
Compared to an average S&P500 Dividend Yield of 2.42, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 2Y66.76%
EPS Next 3Y59.98%
FRA:RHM (11/21/2025, 7:00:00 PM)
1519.5
-117.5 (-7.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners45.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap69.90B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts82.5
Price Target2206.31 (45.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)1.42%
PT rev (3m)6.98%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-10.75%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-2.53%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.06 | ||
| Fwd PE | 34.52 | ||
| P/S | 6.36 | ||
| P/FCF | 720.59 | ||
| P/OCF | 69.14 | ||
| P/B | 14.96 | ||
| P/tB | 36.67 | ||
| EV/EBITDA | 36.69 |
EPS(TTM)19.22
EY1.26%
EPS(NY)44.02
Fwd EY2.9%
FCF(TTM)2.11
FCFY0.14%
OCF(TTM)21.98
OCFY1.45%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)0.94
PEG (5Y)5.17
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 | 5.33 |
F-Score5
WACC7.23%
ROIC/WACC2.05
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 Y84.45%
EPS Next 2Y66.76%
EPS Next 3Y59.98%
EPS Next 5Y47.46%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
Revenue Next Year26.03%
Revenue Next 2Y31.12%
Revenue Next 3Y32.16%
Revenue Next 5Y30.08%
EBIT growth 1Y32.76%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year76.69%
EBIT Next 3Y52.41%
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 of RHEINMETALL AG (RHM.DE) 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.
Is the dividend of RHEINMETALL AG sustainable?
The dividend rating of RHEINMETALL AG (RHM.DE) is 3 / 10 and the dividend payout ratio is 43.98%.