RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1561 EUR
+35 (+2.29%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 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 expensively, but it does show have an excellent growth rating.
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.
Of the past 5 years RHM 4 years were profitable.
Each year in the past 5 years RHM had a positive operating cash flow.
1.2 Ratios
RHM has a better Return On Assets (5.36%) than 71.11% of its industry peers.
The Return On Equity of RHM (17.96%) is better than 66.67% of its industry peers.
RHM has a better Return On Invested Capital (14.80%) than 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.11%.
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
With a decent Profit Margin value of 7.63%, RHM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
RHM's Profit Margin has improved in the last couple of years.
RHM's Operating Margin of 13.41% is fine compared to the rest of the industry. RHM outperforms 80.00% 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 is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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
RHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RHM has about the same amount of shares outstanding.
The number of shares outstanding for RHM has been increased compared to 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 5.43. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.43, RHM belongs to the top of the industry, outperforming 88.89% 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.
The Debt to FCF ratio of RHM (25.05) is worse than 71.11% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
RHM's Debt to Equity ratio of 0.26 is fine compared to the rest 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 | 5.43 |
ROIC/WACC1.92
WACC7.7%
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 of 1.14. This is comparable to the rest of the industry: RHM outperforms 44.44% 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.
RHM's Quick ratio of 0.49 is on the low side compared to the rest of the industry. RHM is outperformed by 80.00% 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.
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
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.46% yearly.
The Revenue is expected to grow by 30.08% on average over the next years. This is a very strong growth
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
With a Price/Earnings ratio of 81.22, RHM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 68.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. RHM is valued rather expensively when compared to this.
RHM is valuated quite expensively with a Price/Forward Earnings ratio of 36.90.
RHM's Price/Forward 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.
RHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.22 | ||
| Fwd PE | 36.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than 75.56% of the companies in the same industry.
RHM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RHM is more expensive than 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 740.27 | ||
| EV/EBITDA | 37.67 |
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 59.11% in the coming years.
PEG (NY)1.08
PEG (5Y)5.31
EPS Next 2Y63.47%
EPS Next 3Y59.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, RHM is not a good candidate for dividend investing.
In the last 3 months the price of RHM has falen by -20.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RHM's Dividend Yield is comparable with the industry average which is at 0.90.
With a Dividend Yield of 0.53, RHM pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
The dividend of RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.98%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
FRA:RHM (12/30/2025, 7:00:00 PM)
1561
+35 (+2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners45.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap71.81B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts81.54
Price Target2237.17 (43.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)-4.98%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.22 | ||
| Fwd PE | 36.9 | ||
| P/S | 6.53 | ||
| P/FCF | 740.27 | ||
| P/OCF | 71.02 | ||
| P/B | 15.37 | ||
| P/tB | 37.67 | ||
| EV/EBITDA | 37.67 |
EPS(TTM)19.22
EY1.23%
EPS(NY)42.3
Fwd EY2.71%
FCF(TTM)2.11
FCFY0.14%
OCF(TTM)21.98
OCFY1.41%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.08
PEG (5Y)5.31
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 | 5.43 |
F-Score5
WACC7.7%
ROIC/WACC1.92
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%.