RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:RHM • DE0007030009
1781.5 EUR
-14 (-0.78%)
Last: Jan 30, 2026, 07:00 PM
Overall RHM gets a fundamental rating of 6 out of 10. We evaluated RHM against 53 industry peers in the Aerospace & Defense industry. RHM has an excellent profitability rating, but there are concerns on its financial health. RHM shows excellent growth, but is valued quite expensive already.
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
- With a decent Return On Assets value of 5.36%, RHM is doing good in the industry, outperforming 69.81% of the companies in the same industry.
- RHM has a better Return On Equity (17.96%) than 62.26% of its industry peers.
- RHM's Return On Invested Capital of 14.80% is amongst the best of the industry. RHM outperforms 84.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.60%.
- 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 66.04% of its industry peers.
- In the last couple of years the Profit Margin of RHM has grown nicely.
- RHM has a better Operating Margin (13.41%) than 79.25% of its industry peers.
- RHM's Operating Margin has improved in the last couple of years.
- RHM has a Gross Margin of 52.12%. This is amongst the best in the industry. RHM outperforms 81.13% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RHM is still creating some value.
- The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
- 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 5.98. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.98, 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.
- Looking at the Debt to FCF ratio, with a value of 25.05, RHM is doing worse than 67.92% of the companies in the same industry.
- 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 | 5.98 |
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.
- The Current ratio of RHM (1.14) is worse than 60.38% of its industry peers.
- A Quick Ratio of 0.49 indicates that RHM may have some problems paying 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
- 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!
- 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 47.18% on average over the next years. This is a very strong growth
- 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.
- 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 92.69, the valuation of RHM can be described as expensive.
- 67.92% of the companies in the same industry are cheaper than RHM, based on the Price/Earnings ratio.
- RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 42.43, the valuation of RHM can be described as expensive.
- Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 64.15% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.69 | ||
| Fwd PE | 42.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than the industry average as 73.58% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than the industry average as 69.81% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 844.83 | ||
| EV/EBITDA | 42.85 |
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)1.3
PEG (5Y)6.06
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 0.71, RHM has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, RHM's dividend is way lower than the S&P500 average.
| 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
- 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 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%.