RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - FRA:RHM - DE0007030009 - Common Stock
1727 EUR
-23.5 (-1.34%)
RHM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 44 industry peers in the Aerospace & Defense industry. While RHM has a great profitability rating, 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
In the past year RHM was profitable.
In the past year RHM had a positive cash flow from operations.
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 Return On Assets of 5.36%. This is in the better half of the industry: RHM outperforms 67.39% of its industry peers.
RHM has a better Return On Equity (17.96%) than 63.04% of its industry peers.
RHM has a better Return On Invested Capital (14.80%) than 86.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.16%.
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
Looking at the Profit Margin, with a value of 7.63%, RHM is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
In the last couple of years the Profit Margin of RHM has grown nicely.
Looking at the Operating Margin, with a value of 13.41%, RHM is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
In the last couple of years the Operating Margin of RHM has grown nicely.
RHM has a Gross Margin of 52.12%. This is in the better half of the industry: RHM outperforms 78.26% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHM is creating value.
Compared to 1 year ago, RHM has about the same amount of shares outstanding.
Compared to 5 years ago, RHM has more shares outstanding
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.85 indicates that RHM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.85, RHM belongs to the best of the industry, outperforming 93.48% 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 worse Debt to FCF ratio (25.05) than 73.91% 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 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.85 |
ROIC/WACC2.04
WACC7.24%
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 in line compared to the rest of the industry. RHM outperforms 41.30% 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 80.43% 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 nice 19.10% over the past year.
Measured over the past years, RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
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)19.1%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%-78.07%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%15.08%
3.2 Future
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.50% yearly.
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.80% yearly.
EPS Next Y84.45%
EPS Next 2Y66.76%
EPS Next 3Y59.98%
EPS Next 5Y47.5%
Revenue Next Year26.03%
Revenue Next 2Y31.12%
Revenue Next 3Y32.16%
Revenue Next 5Y29.8%
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
RHM is valuated quite expensively with a Price/Earnings ratio of 104.16.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 69.57% of the companies in the same industry.
RHM is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 39.23, which means the current valuation is very expensive for RHM.
67.39% of the companies in the same industry are cheaper than RHM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, RHM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.16 | ||
| Fwd PE | 39.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHM indicates a rather expensive valuation: RHM more expensive than 80.43% 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 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 818.99 | ||
| EV/EBITDA | 41.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.23
PEG (5Y)6.81
EPS Next 2Y66.76%
EPS Next 3Y59.98%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.46%, which is pretty low.
RHM's Dividend Yield is slightly below the industry average, which is at 1.19.
Compared to an average S&P500 Dividend Yield of 2.44, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 2Y66.76%
EPS Next 3Y59.98%
FRA:RHM (11/14/2025, 7:00:00 PM)
1727
-23.5 (-1.34%)
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 Cap79.44B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts82.5
Price Target2198.44 (27.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-43.8%
Min EPS beat(2)-84.5%
Max EPS beat(2)-3.11%
EPS beat(4)0
Avg EPS beat(4)-32.21%
Min EPS beat(4)-84.5%
Max EPS beat(4)-3.11%
EPS beat(8)0
Avg EPS beat(8)-31.89%
EPS beat(12)2
Avg EPS beat(12)-18.12%
EPS beat(16)4
Avg EPS beat(16)-15.83%
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-1.23%
Revenue beat(4)1
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)3
Avg Revenue beat(12)-0.94%
Revenue beat(16)4
Avg Revenue beat(16)-0.83%
PT rev (1m)1.06%
PT rev (3m)6.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-2.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.16 | ||
| Fwd PE | 39.23 | ||
| P/S | 7.22 | ||
| P/FCF | 818.99 | ||
| P/OCF | 78.58 | ||
| P/B | 17 | ||
| P/tB | 41.68 | ||
| EV/EBITDA | 41.57 |
EPS(TTM)16.58
EY0.96%
EPS(NY)44.02
Fwd EY2.55%
FCF(TTM)2.11
FCFY0.12%
OCF(TTM)21.98
OCFY1.27%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.23
PEG (5Y)6.81
Graham Number194.65
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 | 5.85 |
F-Score5
WACC7.24%
ROIC/WACC2.04
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)19.1%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%-78.07%
EPS Next Y84.45%
EPS Next 2Y66.76%
EPS Next 3Y59.98%
EPS Next 5Y47.5%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%15.08%
Revenue Next Year26.03%
Revenue Next 2Y31.12%
Revenue Next 3Y32.16%
Revenue Next 5Y29.8%
EBIT growth 1Y32.76%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year76.69%
EBIT Next 3Y52.41%
EBIT Next 5Y42.88%
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%.