RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - Deutsche Boerse Ag - DE0007030009 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to RHM. RHM was compared to 45 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making RHM a very profitable company, without any liquidiy or solvency issues. RHM shows excellent growth, but is valued quite expensive already. These ratings would make RHM suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year RHM was profitable.
RHM had a positive operating cash flow in the past year.
Of the past 5 years RHM 4 years were profitable.
RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.14%, RHM is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
RHM has a better Return On Equity (16.85%) than 64.44% of its industry peers.
RHM has a Return On Invested Capital of 14.50%. This is amongst the best in the industry. RHM outperforms 84.44% of its industry peers.
RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 8.61%.
The last Return On Invested Capital (14.50%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 16.85% | ||
| ROIC | 14.5% |
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 has a Profit Margin of 7.19%. This is in the better half of the industry: RHM outperforms 62.22% of its industry peers.
RHM's Profit Margin has improved in the last couple of years.
RHM has a Operating Margin of 13.85%. 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.
With a decent Gross Margin value of 50.81%, RHM is doing good in the industry, outperforming 80.00% 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 | 13.85% | ||
| PM (TTM) | 7.19% | ||
| GM | 50.81% |
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.
RHM has more shares outstanding than it did 5 years ago.
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.14 indicates that RHM is not in any danger for bankruptcy at the moment.
RHM has a better Altman-Z score (6.14) than 91.11% of its industry peers.
The Debt to FCF ratio of RHM is 1.16, which is an excellent value as it means it would take RHM, only 1.16 years of fcf income to pay off all of its debts.
RHM has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. RHM outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RHM is not too dependend on debt financing.
RHM has a better Debt to Equity ratio (0.34) than 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.14 |
ROIC/WACC2.04
WACC7.11%
2.3 Liquidity
RHM has a Current Ratio of 1.21. This is a normal value and indicates that RHM is financially healthy and should not expect problems in meeting its short term obligations.
RHM's Current ratio of 1.21 is in line compared to the rest of the industry. RHM outperforms 48.89% of its industry peers.
A Quick Ratio of 0.57 indicates that RHM may have some problems paying its short term obligations.
The Quick ratio of RHM (0.57) is worse than 80.00% of its industry peers.
The current and quick ratio evaluation for RHM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.30% over the past year.
The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 41.65%.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
EPS 1Y (TTM)28.3%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%73.64%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
3.2 Future
The Earnings Per Share is expected to grow by 47.05% on average over the next years. This is a very strong growth
Based on estimates for the next years, RHM will show a very strong growth in Revenue. The Revenue will grow by 29.04% on average per year.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y29.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RHM is valuated quite expensively with a Price/Earnings ratio of 105.47.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 77.78% of the companies in the same industry.
RHM is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 39.62, RHM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
RHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.47 | ||
| Fwd PE | 39.62 |
4.2 Price Multiples
82.22% of the companies in the same industry are cheaper than RHM, based on the Enterprise Value to EBITDA ratio.
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 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.62 | ||
| EV/EBITDA | 41.69 |
4.3 Compensation for Growth
RHM's 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.
RHM's earnings are expected to grow with 57.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)6.9
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, RHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.20, RHM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 32.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
FRA:RHM (7/4/2025, 7:00:00 PM)
1755
+56.5 (+3.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.64%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap80.13B
Analysts81.82
Price Target1899.18 (8.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP32.93%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.61%
Min EPS beat(2)-23.39%
Max EPS beat(2)-17.83%
EPS beat(4)0
Avg EPS beat(4)-29.4%
Min EPS beat(4)-55.72%
Max EPS beat(4)-17.83%
EPS beat(8)1
Avg EPS beat(8)-21.55%
EPS beat(12)3
Avg EPS beat(12)-12.4%
EPS beat(16)5
Avg EPS beat(16)-10.06%
Revenue beat(2)1
Avg Revenue beat(2)2.67%
Min Revenue beat(2)-6.12%
Max Revenue beat(2)11.46%
Revenue beat(4)3
Avg Revenue beat(4)3.15%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)3
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.78%
PT rev (1m)19.33%
PT rev (3m)80.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.47 | ||
| Fwd PE | 39.62 | ||
| P/S | 7.65 | ||
| P/FCF | 54.62 | ||
| P/OCF | 35.66 | ||
| P/B | 17.93 | ||
| P/tB | 47.44 | ||
| EV/EBITDA | 41.69 |
EPS(TTM)16.64
EY0.95%
EPS(NY)44.29
Fwd EY2.52%
FCF(TTM)32.13
FCFY1.83%
OCF(TTM)49.21
OCFY2.8%
SpS229.41
BVpS97.9
TBVpS36.99
PEG (NY)1.18
PEG (5Y)6.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 16.85% | ||
| ROCE | 19.31% | ||
| ROIC | 14.5% | ||
| ROICexc | 16.95% | ||
| ROICexgc | 29.86% | ||
| OM | 13.85% | ||
| PM (TTM) | 7.19% | ||
| GM | 50.81% | ||
| FCFM | 14% |
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%
ROICexcg growth 3Y12.63%
ROICexcg 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-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 183.96% | ||
| Cap/Sales | 7.45% | ||
| Interest Coverage | 725.5 | ||
| Cash Conversion | 119.84% | ||
| Profit Quality | 194.82% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.14 |
F-Score6
WACC7.11%
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)28.3%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%73.64%
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y29.04%
EBIT growth 1Y66.21%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y41.54%
FCF growth 1Y762.94%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y323.96%
OCF growth 3Y35.59%
OCF growth 5Y23.4%