RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
Taking everything into account, 1RHM scores 7 out of 10 in our fundamental rating. 1RHM was compared to 41 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making 1RHM a very profitable company, without any liquidiy or solvency issues. 1RHM shows excellent growth, but is valued quite expensive already. These ratings would make 1RHM suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1RHM had positive earnings in the past year.
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 better Return On Assets (5.14%) than 75.61% of its industry peers.
Looking at the Return On Equity, with a value of 16.85%, 1RHM is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
1RHM has a Return On Invested Capital of 14.50%. This is amongst the best in the industry. 1RHM outperforms 82.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 9.24%.
The 3 year average ROIC (11.89%) for 1RHM is below the current ROIC(14.50%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.19%, 1RHM is doing good in the industry, outperforming 65.85% of the companies in the same industry.
1RHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.85%, 1RHM belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
In the last couple of years the Operating Margin of 1RHM has grown nicely.
The Gross Margin of 1RHM (50.81%) is better than 78.05% of its industry peers.
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.
Compared to 1 year ago, 1RHM has about the same amount of shares outstanding.
The number of shares outstanding for 1RHM has been increased compared to 5 years ago.
The debt/assets ratio for 1RHM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.50 indicates that 1RHM is not in any danger for bankruptcy at the moment.
1RHM has a better Altman-Z score (6.50) than 95.12% of its industry peers.
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 87.80% of its industry peers.
1RHM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
1RHM has a Debt to Equity ratio of 0.34. This is in the better half of the industry: 1RHM outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.5 |
ROIC/WACC2.05
WACC7.07%
2.3 Liquidity
A Current Ratio of 1.21 indicates that 1RHM should not have too much problems paying its short term obligations.
The Current ratio of 1RHM (1.21) is comparable to the rest of the industry.
A Quick Ratio of 0.57 indicates that 1RHM may have some problems paying its short term obligations.
The Quick ratio of 1RHM (0.57) is worse than 73.17% 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
1RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
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.
The Revenue has grown by 41.65% in the past year. This is a very strong growth!
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)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
Based on estimates for the next years, 1RHM will show a very strong growth in Earnings Per Share. The EPS will grow by 47.45% on average per year.
1RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.33% yearly.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.45%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y25.33%
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.
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
The Price/Earnings ratio is 109.95, which means the current valuation is very expensive for 1RHM.
Based on the Price/Earnings ratio, 1RHM is valued a bit more expensive than 73.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1RHM to the average of the S&P500 Index (26.29), we can say 1RHM is valued expensively.
A Price/Forward Earnings ratio of 41.30 indicates a quite expensive valuation of 1RHM.
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 70.73% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1RHM to the average of the S&P500 Index (22.17), we can say 1RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.95 | ||
| Fwd PE | 41.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1RHM is valued expensively inside the industry as 80.49% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1RHM indicates a slightly more expensive valuation: 1RHM is more expensive than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.94 | ||
| EV/EBITDA | 44.92 |
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)1.23
PEG (5Y)7.19
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 1.19.
With a Dividend Yield of 0.43, 1RHM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
On average, the dividend of 1RHM grows each year by 22.25%, which is quite nice.
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.
1RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
BIT:1RHM (6/3/2025, 9:12:15 AM)
1829.5
-1.5 (-0.08%)
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 Cap83.53B
Analysts82.61
Price Target1598.35 (-12.63%)
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)2.67%
PT rev (3m)78.04%
EPS NQ rev (1m)-13.06%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.95 | ||
| Fwd PE | 41.3 | ||
| P/S | 7.97 | ||
| P/FCF | 56.94 | ||
| P/OCF | 37.18 | ||
| P/B | 18.69 | ||
| P/tB | 49.46 | ||
| EV/EBITDA | 44.92 |
EPS(TTM)16.64
EY0.91%
EPS(NY)44.29
Fwd EY2.42%
FCF(TTM)32.13
FCFY1.76%
OCF(TTM)49.21
OCFY2.69%
SpS229.41
BVpS97.9
TBVpS36.99
PEG (NY)1.23
PEG (5Y)7.19
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 | 6.5 |
F-Score6
WACC7.07%
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)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 5Y47.45%
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 5Y25.33%
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%