RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - Deutsche Boerse Ag - DE0007030009 - Common Stock - Currency: EUR
Taking everything into account, RHM scores 7 out of 10 in our fundamental rating. RHM was compared to 41 industry peers in the Aerospace & Defense industry. RHM gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year RHM had a positive cash flow from operations.
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 4.55%, RHM is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.95%, RHM is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
RHM has a better Return On Invested Capital (13.07%) than 86.84% of its industry peers.
RHM had an Average Return On Invested Capital over the past 3 years of 11.07%. This is above the industry average of 8.91%.
The 3 year average ROIC (11.07%) for RHM is below the current ROIC(13.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 16.95% | ||
| ROIC | 13.07% |
ROA(3y)4.73%
ROA(5y)3.67%
ROE(3y)15%
ROE(5y)11.86%
ROIC(3y)11.07%
ROIC(5y)9.79%
1.3 Margins
RHM has a Profit Margin of 6.44%. This is in the better half of the industry: RHM outperforms 68.42% of its industry peers.
RHM's Profit Margin has improved in the last couple of years.
RHM's Operating Margin of 12.59% is fine compared to the rest of the industry. RHM outperforms 78.95% of its industry peers.
In the last couple of years the Operating Margin of RHM has grown nicely.
RHM has a Gross Margin of 52.52%. This is amongst the best in the industry. RHM outperforms 84.21% of its industry peers.
RHM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 6.44% | ||
| GM | 52.52% |
OM growth 3Y13.32%
OM growth 5Y7.77%
PM growth 3YN/A
PM growth 5Y8.49%
GM growth 3Y2.48%
GM growth 5Y2.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHM is creating value.
RHM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RHM has been increased compared to 5 years ago.
Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.77 indicates that RHM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.77, RHM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
RHM has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as RHM would need 2.05 years to pay back of all of its debts.
The Debt to FCF ratio of RHM (2.05) is better than 86.84% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that RHM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, RHM is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.84
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.25 indicates that RHM should not have too much problems paying its short term obligations.
RHM's Current ratio of 1.25 is fine compared to the rest of the industry. RHM outperforms 68.42% of its industry peers.
RHM has a Quick Ratio of 1.25. This is a bad value and indicates that RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, RHM is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
RHM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.25 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.36% over the past year.
The Earnings Per Share has been growing by 12.77% on average over the past years. This is quite good.
The Revenue has grown by 27.18% in the past year. This is a very strong growth!
RHM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)21.36%
EPS 3YN/A
EPS 5Y12.77%
EPS Q2Q%32.03%
Revenue 1Y (TTM)27.18%
Revenue growth 3Y9.91%
Revenue growth 5Y3.14%
Sales Q2Q%39.53%
3.2 Future
The Earnings Per Share is expected to grow by 40.26% on average over the next years. This is a very strong growth
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.27% yearly.
EPS Next Y58.18%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
EPS Next 5Y40.26%
Revenue Next Year34.55%
Revenue Next 2Y30.54%
Revenue Next 3Y30.28%
Revenue Next 5Y28.27%
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
A Price/Earnings ratio of 80.10 indicates a quite expensive valuation of RHM.
Compared to the rest of the industry, the Price/Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 68.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RHM is valued quite expensively.
A Price/Forward Earnings ratio of 37.52 indicates a quite expensive valuation of RHM.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.1 | ||
| Fwd PE | 37.52 |
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 73.68% of the companies listed in the same industry.
RHM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.07 | ||
| EV/EBITDA | 34.02 |
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.
RHM's earnings are expected to grow with 48.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)6.27
EPS Next 2Y51.07%
EPS Next 3Y48.54%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.48%, which is pretty low.
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 2.33, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of RHM is nicely growing with an annual growth rate of 17.96%!
Dividend Growth(5Y)17.96%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
43.66% 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.
DP43.66%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
FRA:RHM (3/7/2025, 7:00:00 PM)
1115
-84 (-7.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners41.98%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap49.39B
Analysts83.64
Price Target1054.94 (-5.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend4.31
Dividend Growth(5Y)17.96%
DP43.66%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.19%
Min EPS beat(2)-55.72%
Max EPS beat(2)-20.67%
EPS beat(4)0
Avg EPS beat(4)-31.58%
Min EPS beat(4)-55.72%
Max EPS beat(4)-0.72%
EPS beat(8)2
Avg EPS beat(8)-11.08%
EPS beat(12)4
Avg EPS beat(12)-10.37%
EPS beat(16)6
Avg EPS beat(16)-4.16%
Revenue beat(2)2
Avg Revenue beat(2)3.63%
Min Revenue beat(2)1.53%
Max Revenue beat(2)5.73%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-9.81%
Max Revenue beat(4)5.73%
Revenue beat(8)2
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-2.14%
PT rev (1m)38.36%
PT rev (3m)47.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.1 | ||
| Fwd PE | 37.52 | ||
| P/S | 5.6 | ||
| P/FCF | 56.07 | ||
| P/OCF | 33.81 | ||
| P/B | 14.74 | ||
| P/tB | 37.53 | ||
| EV/EBITDA | 34.02 |
EPS(TTM)13.92
EY1.25%
EPS(NY)29.72
Fwd EY2.67%
FCF(TTM)19.89
FCFY1.78%
OCF(TTM)32.98
OCFY2.96%
SpS199.23
BVpS75.67
TBVpS29.71
PEG (NY)1.38
PEG (5Y)6.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 16.95% | ||
| ROCE | 17.22% | ||
| ROIC | 13.07% | ||
| ROICexc | 14.11% | ||
| ROICexgc | 21.4% | ||
| OM | 12.59% | ||
| PM (TTM) | 6.44% | ||
| GM | 52.52% | ||
| FCFM | 9.98% |
ROA(3y)4.73%
ROA(5y)3.67%
ROE(3y)15%
ROE(5y)11.86%
ROIC(3y)11.07%
ROIC(5y)9.79%
ROICexc(3y)13.67%
ROICexc(5y)12.9%
ROICexgc(3y)18.83%
ROICexgc(5y)17.64%
ROCE(3y)14.89%
ROCE(5y)13.08%
ROICexcg growth 3Y13.23%
ROICexcg growth 5Y4.74%
ROICexc growth 3Y5.06%
ROICexc growth 5Y0.22%
OM growth 3Y13.32%
OM growth 5Y7.77%
PM growth 3YN/A
PM growth 5Y8.49%
GM growth 3Y2.48%
GM growth 5Y2.49%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 152.63% | ||
| Cap/Sales | 6.57% | ||
| Interest Coverage | 24.69 | ||
| Cash Conversion | 97.99% | ||
| Profit Quality | 155.11% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 4.77 |
F-Score5
WACC7.12%
ROIC/WACC1.84
Cap/Depr(3y)125.36%
Cap/Depr(5y)104.3%
Cap/Sales(3y)5.26%
Cap/Sales(5y)4.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.36%
EPS 3YN/A
EPS 5Y12.77%
EPS Q2Q%32.03%
EPS Next Y58.18%
EPS Next 2Y51.07%
EPS Next 3Y48.54%
EPS Next 5Y40.26%
Revenue 1Y (TTM)27.18%
Revenue growth 3Y9.91%
Revenue growth 5Y3.14%
Sales Q2Q%39.53%
Revenue Next Year34.55%
Revenue Next 2Y30.54%
Revenue Next 3Y30.28%
Revenue Next 5Y28.27%
EBIT growth 1Y38.01%
EBIT growth 3Y24.55%
EBIT growth 5Y11.16%
EBIT Next Year94.82%
EBIT Next 3Y50.23%
EBIT Next 5Y41.02%
FCF growth 1Y640.49%
FCF growth 3Y16.71%
FCF growth 5YN/A
OCF growth 1Y842.58%
OCF growth 3Y17.85%
OCF growth 5Y25.15%