RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - FRA:RHM - DE0007030009 - Common Stock
1707 EUR
-22 (-1.27%)
Taking everything into account, RHM scores 6 out of 10 in our fundamental rating. RHM was compared to 46 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 expensive, but it does show an excellent growth. These ratings would make RHM suitable for growth 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.
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
The Return On Assets of RHM (5.63%) is better than 69.57% of its industry peers.
RHM has a better Return On Equity (18.45%) than 65.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.83%, RHM belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RHM is above the industry average of 9.55%.
The last Return On Invested Capital (14.83%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 18.45% | ||
| ROIC | 14.83% |
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's Profit Margin of 7.70% is fine compared to the rest of the industry. RHM outperforms 69.57% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
RHM has a better Operating Margin (13.50%) than 76.09% of its industry peers.
In the last couple of years the Operating Margin of RHM has grown nicely.
RHM has a better Gross Margin (51.30%) than 78.26% 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 | 13.5% | ||
| PM (TTM) | 7.7% | ||
| GM | 51.3% |
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.
RHM has about the same amout of shares outstanding than it did 1 year ago.
RHM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
RHM has an Altman-Z score of 6.28. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RHM (6.28) is better than 86.96% of its industry peers.
RHM has a debt to FCF ratio of 5.20. This is a neutral value as RHM would need 5.20 years to pay back of all of its debts.
RHM has a Debt to FCF ratio (5.20) which is comparable to the rest of the industry.
RHM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RHM (0.27) is better than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 6.28 |
ROIC/WACC2.01
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.15 indicates that RHM should not have too much problems paying its short term obligations.
RHM has a Current ratio of 1.15. This is comparable to the rest of the industry: RHM outperforms 41.30% of its industry peers.
RHM has a Quick Ratio of 1.15. 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 has a worse Quick ratio (0.47) than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.85% 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.
The Revenue has grown by 31.24% in the past year. This is a very strong growth!
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)43.85%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%156.76%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
3.2 Future
Based on estimates for the next years, RHM will show a very strong growth in Earnings Per Share. The EPS will grow by 46.94% on average per year.
The Revenue is expected to grow by 29.31% on average over the next years. This is a very strong growth
EPS Next Y86.07%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
EPS Next 5Y46.94%
Revenue Next Year26.34%
Revenue Next 2Y30.92%
Revenue Next 3Y31.99%
Revenue Next 5Y29.31%
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
Based on the Price/Earnings ratio of 90.03, the valuation of RHM can be described as expensive.
RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 67.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. RHM is valued rather expensively when compared to this.
RHM is valuated quite expensively with a Price/Forward Earnings ratio of 38.60.
RHM's Price/Forward Earnings ratio is in line with the industry average.
RHM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.03 | ||
| Fwd PE | 38.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than the industry average as 76.09% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 203.42 | ||
| EV/EBITDA | 42.69 |
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.
A more expensive valuation may be justified as RHM's earnings are expected to grow with 60.58% in the coming years.
PEG (NY)1.05
PEG (5Y)5.89
EPS Next 2Y67.14%
EPS Next 3Y60.58%
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 1.07, RHM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
On average, the dividend of RHM grows each year by 22.25%, which is quite nice.
Dividend Growth(5Y)22.25%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
44.89% of the earnings are spent on dividend by RHM. 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.
DP44.89%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
FRA:RHM (11/5/2025, 7:00:00 PM)
1707
-22 (-1.27%)
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 Cap78.52B
Revenue(TTM)10.67B
Net Income(TTM)822.00M
Analysts82.5
Price Target2198.44 (28.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP44.89%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.47%
Min EPS beat(2)-17.83%
Max EPS beat(2)-3.11%
EPS beat(4)0
Avg EPS beat(4)-16.25%
Min EPS beat(4)-23.39%
Max EPS beat(4)-3.11%
EPS beat(8)1
Avg EPS beat(8)-20.21%
EPS beat(12)3
Avg EPS beat(12)-10.58%
EPS beat(16)5
Avg EPS beat(16)-8.89%
Revenue beat(2)1
Avg Revenue beat(2)3.75%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)11.46%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)3
Avg Revenue beat(12)-0.94%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)4%
PT rev (3m)10.87%
EPS NQ rev (1m)23.51%
EPS NQ rev (3m)-31.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-3.77%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.03 | ||
| Fwd PE | 38.6 | ||
| P/S | 7.36 | ||
| P/FCF | 203.42 | ||
| P/OCF | 63.43 | ||
| P/B | 17.63 | ||
| P/tB | 45.21 | ||
| EV/EBITDA | 42.69 |
EPS(TTM)18.96
EY1.11%
EPS(NY)44.22
Fwd EY2.59%
FCF(TTM)8.39
FCFY0.49%
OCF(TTM)26.91
OCFY1.58%
SpS231.98
BVpS96.85
TBVpS37.76
PEG (NY)1.05
PEG (5Y)5.89
Graham Number203.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 18.45% | ||
| ROCE | 19.75% | ||
| ROIC | 14.83% | ||
| ROICexc | 15.58% | ||
| ROICexgc | 25.6% | ||
| OM | 13.5% | ||
| PM (TTM) | 7.7% | ||
| GM | 51.3% | ||
| FCFM | 3.62% |
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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 184.82% | ||
| Cap/Sales | 7.98% | ||
| Interest Coverage | 480.33 | ||
| Cash Conversion | 65.09% | ||
| Profit Quality | 46.96% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 6.28 |
F-Score6
WACC7.36%
ROIC/WACC2.01
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)43.85%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%156.76%
EPS Next Y86.07%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
EPS Next 5Y46.94%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
Revenue Next Year26.34%
Revenue Next 2Y30.92%
Revenue Next 3Y31.99%
Revenue Next 5Y29.31%
EBIT growth 1Y45.12%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year76.69%
EBIT Next 3Y52.41%
EBIT Next 5Y42.5%
FCF growth 1Y208.8%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y143.7%
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 5 / 10.
Is the dividend of RHEINMETALL AG sustainable?
The dividend rating of RHEINMETALL AG (RHM.DE) is 4 / 10 and the dividend payout ratio is 44.89%.