RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - FRA:RHM - DE0007030009 - Common Stock
1928 EUR
+8.5 (+0.44%)
RHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Aerospace & Defense industry. While RHM has a great profitability rating, there are some minor concerns on its financial health. RHM shows excellent growth, but is valued quite expensive already. With these ratings, RHM could be worth investigating further 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.
RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.63%, RHM is doing good in the industry, outperforming 78.26% of the companies in the same industry.
With a decent Return On Equity value of 18.45%, RHM is doing good in the industry, outperforming 73.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.83%, RHM belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.20%.
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
Looking at the Profit Margin, with a value of 7.70%, RHM is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
RHM's Profit Margin has improved in the last couple of years.
RHM has a Operating Margin of 13.50%. This is amongst the best in the industry. RHM outperforms 80.43% of its industry peers.
RHM's Operating Margin has improved in the last couple of years.
The Gross Margin of RHM (51.30%) is better 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.
The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RHM has more shares outstanding
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.82 indicates that RHM is not in any danger for bankruptcy at the moment.
RHM's Altman-Z score of 6.82 is amongst the best of the industry. RHM outperforms 91.30% 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.
With a decent Debt to FCF ratio value of 5.20, RHM is doing good in the industry, outperforming 60.87% of the companies in the same industry.
RHM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
RHM has a better Debt to Equity ratio (0.27) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 6.82 |
ROIC/WACC2.05
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.15 indicates that RHM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, RHM is in line with its industry, outperforming 41.30% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that RHM may have some problems paying its short term obligations.
RHM has a Quick ratio of 0.47. This is amonst the worse of the industry: RHM underperforms 80.43% of its industry peers.
The current and quick ratio evaluation for RHM 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 | 1.15 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.85%, which is quite impressive.
The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.24%.
Measured over the past years, RHM shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
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
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.06% yearly.
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.11% yearly.
EPS Next Y86.07%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
EPS Next 5Y50.06%
Revenue Next Year26.35%
Revenue Next 2Y30.55%
Revenue Next 3Y32.17%
Revenue Next 5Y31.11%
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
The Price/Earnings ratio is 101.69, which means the current valuation is very expensive for RHM.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than the industry average as 67.39% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (27.38), we can say RHM is valued expensively.
RHM is valuated quite expensively with a Price/Forward Earnings ratio of 43.60.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 69.57% of the companies in the same industry.
RHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.69 | ||
| Fwd PE | 43.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 78.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 229.76 | ||
| EV/EBITDA | 47.5 |
4.3 Compensation for Growth
RHM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RHM may justify a higher PE ratio.
RHM's earnings are expected to grow with 60.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)6.65
EPS Next 2Y67.14%
EPS Next 3Y60.58%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.42%, which is pretty low.
RHM's Dividend Yield is comparable with the industry average which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.38, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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.
The dividend of RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.89%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
FRA:RHM (9/19/2025, 7:00:00 PM)
1928
+8.5 (+0.44%)
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 Cap88.69B
Analysts83.81
Price Target2113.85 (9.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)2.5%
PT rev (3m)12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.15%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)5.37%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.69 | ||
| Fwd PE | 43.6 | ||
| P/S | 8.31 | ||
| P/FCF | 229.76 | ||
| P/OCF | 71.64 | ||
| P/B | 19.91 | ||
| P/tB | 51.06 | ||
| EV/EBITDA | 47.5 |
EPS(TTM)18.96
EY0.98%
EPS(NY)44.22
Fwd EY2.29%
FCF(TTM)8.39
FCFY0.44%
OCF(TTM)26.91
OCFY1.4%
SpS231.98
BVpS96.85
TBVpS37.76
PEG (NY)1.18
PEG (5Y)6.65
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%
ROICexcg growth 3Y12.63%
ROICexcg 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 | 6.82 |
F-Score6
WACC7.23%
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)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 5Y50.06%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
Revenue Next Year26.35%
Revenue Next 2Y30.55%
Revenue Next 3Y32.17%
Revenue Next 5Y31.11%
EBIT growth 1Y45.12%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year76.69%
EBIT Next 3Y52.41%
EBIT Next 5Y44.76%
FCF growth 1Y208.8%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y143.7%
OCF growth 3Y35.59%
OCF growth 5Y23.4%