RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
Overall 1RHM gets a fundamental rating of 7 out of 10. We evaluated 1RHM against 43 industry peers in the Aerospace & Defense industry. 1RHM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1RHM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 1RHM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1RHM was profitable.
In the past year 1RHM had a positive cash flow from operations.
Of the past 5 years 1RHM 4 years were profitable.
1RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1RHM has a better Return On Assets (5.14%) than 74.42% of its industry peers.
With a decent Return On Equity value of 16.85%, 1RHM is doing good in the industry, outperforming 65.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.50%, 1RHM belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1RHM is above the industry average of 8.78%.
The last Return On Invested Capital (14.50%) for 1RHM 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
1RHM's Profit Margin of 7.19% is fine compared to the rest of the industry. 1RHM outperforms 65.12% of its industry peers.
1RHM's Profit Margin has improved in the last couple of years.
The Operating Margin of 1RHM (13.85%) is better than 83.72% of its industry peers.
1RHM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.81%, 1RHM belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
1RHM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1RHM is creating value.
The number of shares outstanding for 1RHM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1RHM has more shares outstanding
Compared to 1 year ago, 1RHM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.34 indicates that 1RHM is not in any danger for bankruptcy at the moment.
1RHM's Altman-Z score of 6.34 is amongst the best of the industry. 1RHM outperforms 90.70% of its industry peers.
1RHM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.16, 1RHM belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
1RHM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.34, 1RHM is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.34 |
ROIC/WACC2
WACC7.25%
2.3 Liquidity
A Current Ratio of 1.21 indicates that 1RHM should not have too much problems paying its short term obligations.
1RHM has a Current ratio of 1.21. This is comparable to the rest of the industry: 1RHM outperforms 48.84% of its industry peers.
1RHM has a Quick Ratio of 1.21. This is a bad value and indicates that 1RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
1RHM has a worse Quick ratio (0.57) than 79.07% of its industry peers.
1RHM 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 | 1.21 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.30% over the past year.
1RHM 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 41.65% in the past year. This is a very strong growth!
1RHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.29% yearly.
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, 1RHM 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
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
The Price/Earnings ratio is 106.49, which means the current valuation is very expensive for 1RHM.
1RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 76.74% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. 1RHM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 40.01, which means the current valuation is very expensive for 1RHM.
1RHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 67.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1RHM to the average of the S&P500 Index (21.49), we can say 1RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.49 | ||
| Fwd PE | 40.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1RHM indicates a rather expensive valuation: 1RHM more expensive than 81.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1RHM is valued a bit more expensive than the industry average as 62.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.15 | ||
| EV/EBITDA | 43.48 |
4.3 Compensation for Growth
1RHM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1RHM may justify a higher PE ratio.
1RHM's earnings are expected to grow with 57.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)6.96
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, 1RHM is not a good candidate for dividend investing.
1RHM's Dividend Yield is slightly below the industry average, which is at 1.22.
With a Dividend Yield of 0.43, 1RHM pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of 1RHM is nicely growing with an annual growth rate of 22.25%!
Dividend Growth(5Y)22.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1RHM pays out 32.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
BIT:1RHM (6/27/2025, 7:00:00 PM)
1772
-83 (-4.47%)
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 Cap80.91B
Analysts81.82
Price Target1888.81 (6.59%)
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 Years0
Div Non Decr Years0
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)18.17%
PT rev (3m)30.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.64%
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 | 106.49 | ||
| Fwd PE | 40.01 | ||
| P/S | 7.72 | ||
| P/FCF | 55.15 | ||
| P/OCF | 36.01 | ||
| P/B | 18.1 | ||
| P/tB | 47.9 | ||
| EV/EBITDA | 43.48 |
EPS(TTM)16.64
EY0.94%
EPS(NY)44.29
Fwd EY2.5%
FCF(TTM)32.13
FCFY1.81%
OCF(TTM)49.21
OCFY2.78%
SpS229.41
BVpS97.9
TBVpS36.99
PEG (NY)1.19
PEG (5Y)6.96
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 5Y16.71%
ROICexc growth 3Y2.66%
ROICexc growth 5Y9.71%
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 | 6.34 |
F-Score6
WACC7.25%
ROIC/WACC2
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%