RHEINMETALL AG (1RHM.MI) Stock Fundamental Analysis
BIT:1RHM - Euronext Milan - DE0007030009 - Common Stock - Currency: EUR
1RHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is valued quite expensive, but it does show an excellent growth. These ratings would make 1RHM suitable 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.
1RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1RHM (5.00%) is better than 73.17% of its industry peers.
The Return On Equity of 1RHM (17.70%) is better than 70.73% of its industry peers.
The Return On Invested Capital of 1RHM (13.79%) is better than 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1RHM is above the industry average of 8.87%.
The 3 year average ROIC (11.89%) for 1RHM is below the current ROIC(13.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 17.7% | ||
| ROIC | 13.79% |
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 7.35%, 1RHM is doing good in the industry, outperforming 73.17% of the companies in the same industry.
1RHM's Profit Margin has improved in the last couple of years.
1RHM has a Operating Margin of 14.23%. This is amongst the best in the industry. 1RHM outperforms 87.80% of its industry peers.
1RHM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 51.87%, 1RHM belongs to the best of the industry, outperforming 82.93% 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 | 14.23% | ||
| PM (TTM) | 7.35% | ||
| GM | 51.87% |
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.
1RHM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1RHM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.27 indicates that 1RHM is not in any danger for bankruptcy at the moment.
1RHM has a better Altman-Z score (5.27) than 92.68% of its industry peers.
1RHM has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as 1RHM would need 2.45 years to pay back of all of its debts.
1RHM's Debt to FCF ratio of 2.45 is amongst the best of the industry. 1RHM outperforms 80.49% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that 1RHM is not too dependend on debt financing.
1RHM has a better Debt to Equity ratio (0.46) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.9
WACC7.27%
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 51.22% of its industry peers.
A Quick Ratio of 0.63 indicates that 1RHM may have some problems paying its short term obligations.
The Quick ratio of 1RHM (0.63) is comparable to the rest of the industry.
The current and quick ratio evaluation for 1RHM is rather negative, while it does have 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 | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.58% 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 35.86% 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)21.58%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%23.04%
Revenue 1Y (TTM)35.86%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%36.16%
3.2 Future
1RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.45% yearly.
Based on estimates for the next years, 1RHM will show a very strong growth in Revenue. The Revenue will grow by 25.33% on average per year.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.45%
Revenue Next Year26.29%
Revenue Next 2Y29.53%
Revenue Next 3Y29.63%
Revenue Next 5Y25.33%
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
Based on the Price/Earnings ratio of 93.59, the valuation of 1RHM can be described as expensive.
65.85% of the companies in the same industry are cheaper than 1RHM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.98. 1RHM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 49.46, 1RHM can be considered very expensive at the moment.
1RHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1RHM is more expensive than 78.05% of the companies in the same industry.
1RHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.59 | ||
| Fwd PE | 49.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1RHM indicates a slightly more expensive valuation: 1RHM is more expensive than 73.17% of the companies listed in the same industry.
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 | 67.03 | ||
| EV/EBITDA | 36.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1RHM has an outstanding profitability rating, which 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)1.05
PEG (5Y)6.12
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 1RHM is not a good candidate for dividend investing.
1RHM's Dividend Yield is slightly below the industry average, which is at 1.41.
Compared to an average S&P500 Dividend Yield of 2.46, 1RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
34.59% of the earnings are spent on dividend by 1RHM. This is a low number and sustainable payout ratio.
1RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.59%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
BIT:1RHM (4/30/2025, 3:40:11 PM)
1481.5
+36.5 (+2.53%)
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 Cap66.22B
Analysts82.61
Price Target1556.84 (5.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP34.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.03%
Min EPS beat(2)-23.39%
Max EPS beat(2)-20.67%
EPS beat(4)0
Avg EPS beat(4)-37.24%
Min EPS beat(4)-55.72%
Max EPS beat(4)-20.67%
EPS beat(8)2
Avg EPS beat(8)-13.08%
EPS beat(12)4
Avg EPS beat(12)-9.63%
EPS beat(16)6
Avg EPS beat(16)-5.04%
Revenue beat(2)1
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-6.12%
Max Revenue beat(2)1.53%
Revenue beat(4)2
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-9.81%
Max Revenue beat(4)5.73%
Revenue beat(8)2
Avg Revenue beat(8)-2.06%
Revenue beat(12)3
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.99%
PT rev (1m)47.87%
PT rev (3m)112.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-4.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.59 | ||
| Fwd PE | 49.46 | ||
| P/S | 6.79 | ||
| P/FCF | 67.03 | ||
| P/OCF | 38.5 | ||
| P/B | 16.35 | ||
| P/tB | 53.02 | ||
| EV/EBITDA | 36.76 |
EPS(TTM)15.83
EY1.07%
EPS(NY)29.96
Fwd EY2.02%
FCF(TTM)22.1
FCFY1.49%
OCF(TTM)38.48
OCFY2.6%
SpS218.14
BVpS90.63
TBVpS27.94
PEG (NY)1.05
PEG (5Y)6.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 17.7% | ||
| ROCE | 18.35% | ||
| ROIC | 13.79% | ||
| ROICexc | 16.34% | ||
| ROICexgc | 29.15% | ||
| OM | 14.23% | ||
| PM (TTM) | 7.35% | ||
| GM | 51.87% | ||
| FCFM | 10.13% |
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-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 181.64% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.04% | ||
| Profit Quality | 137.8% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 5.27 |
F-Score5
WACC7.27%
ROIC/WACC1.9
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)21.58%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%23.04%
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.45%
Revenue 1Y (TTM)35.86%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%36.16%
Revenue Next Year26.29%
Revenue Next 2Y29.53%
Revenue Next 3Y29.63%
Revenue Next 5Y25.33%
EBIT growth 1Y64.07%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year74.15%
EBIT Next 3Y48.03%
EBIT Next 5Y41.54%
FCF growth 1Y186.38%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y131.49%
OCF growth 3Y35.59%
OCF growth 5Y23.4%