RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1RHM. 1RHM was compared to 45 industry peers in the Aerospace & Defense industry. 1RHM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1RHM shows excellent growth, but is valued quite expensive already. 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.
1RHM had a positive operating cash flow in the past year.
1RHM had positive earnings in 4 of the past 5 years.
In the past 5 years 1RHM always reported a positive cash flow from operatings.
1.2 Ratios
1RHM has a Return On Assets of 5.14%. This is in the better half of the industry: 1RHM outperforms 68.89% of its industry peers.
With a decent Return On Equity value of 16.85%, 1RHM is doing good in the industry, outperforming 64.44% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.50%, 1RHM belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 9.16%.
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 has a better Profit Margin (7.19%) than 62.22% of its industry peers.
In the last couple of years the Profit Margin of 1RHM has grown nicely.
The Operating Margin of 1RHM (13.85%) is better than 84.44% of its industry peers.
In the last couple of years the Operating Margin of 1RHM has grown nicely.
Looking at the Gross Margin, with a value of 50.81%, 1RHM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1RHM 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
1RHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
1RHM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that 1RHM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.77, 1RHM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of 1RHM is 1.16, which is an excellent value as it means it would take 1RHM, only 1.16 years of fcf income to pay off all of its debts.
1RHM has a Debt to FCF ratio of 1.16. This is amongst the best in the industry. 1RHM outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that 1RHM is not too dependend on debt financing.
1RHM has a Debt to Equity ratio of 0.34. This is in the better half of the industry: 1RHM outperforms 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 5.77 |
ROIC/WACC2.05
WACC7.06%
2.3 Liquidity
A Current Ratio of 1.21 indicates that 1RHM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, 1RHM is in line with its industry, outperforming 48.89% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.57, 1RHM is doing worse than 77.78% of the companies in the same industry.
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
1RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.45%, which is quite good.
Measured over the past years, 1RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
1RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.88%.
Measured over the past years, 1RHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
EPS 1Y (TTM)19.45%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%-60.54%
Revenue 1Y (TTM)35.88%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%5.99%
3.2 Future
1RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.05% yearly.
1RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.04% yearly.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue Next Year26.8%
Revenue Next 2Y30.53%
Revenue Next 3Y31.63%
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
A Price/Earnings ratio of 98.95 indicates a quite expensive valuation of 1RHM.
1RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 73.33% of the companies in the same industry.
1RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.41.
1RHM is valuated quite expensively with a Price/Forward Earnings ratio of 35.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1RHM indicates a slightly more expensive valuation: 1RHM is more expensive than 64.44% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. 1RHM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.95 | ||
| Fwd PE | 35.16 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than 1RHM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1RHM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.77 | ||
| EV/EBITDA | 38.31 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as 1RHM's earnings are expected to grow with 57.98% in the coming years.
PEG (NY)1.11
PEG (5Y)6.47
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, 1RHM is not a good candidate for dividend investing.
1RHM's Dividend Yield is slightly below the industry average, which is at 1.24.
With a Dividend Yield of 0.49, 1RHM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
32.93% of the earnings are spent on dividend by 1RHM. This is a low number and 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 (8/12/2025, 2:30:02 PM)
1557.5
+7.5 (+0.48%)
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 Cap71.55B
Analysts81.9
Price Target2061.2 (32.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)9.13%
PT rev (3m)32.4%
EPS NQ rev (1m)-7.68%
EPS NQ rev (3m)-19.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.95 | ||
| Fwd PE | 35.16 | ||
| P/S | 6.83 | ||
| P/FCF | 48.77 | ||
| P/OCF | 31.84 | ||
| P/B | 16.01 | ||
| P/tB | 42.36 | ||
| EV/EBITDA | 38.31 |
EPS(TTM)15.74
EY1.01%
EPS(NY)44.29
Fwd EY2.84%
FCF(TTM)31.93
FCFY2.05%
OCF(TTM)48.91
OCFY3.14%
SpS228.01
BVpS97.3
TBVpS36.77
PEG (NY)1.11
PEG (5Y)6.47
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 | 5.77 |
F-Score6
WACC7.06%
ROIC/WACC2.05
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)19.45%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%-60.54%
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue 1Y (TTM)35.88%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%5.99%
Revenue Next Year26.8%
Revenue Next 2Y30.53%
Revenue Next 3Y31.63%
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%