RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - DE0007030009 - Common Stock
1635.5 EUR
-14.5 (-0.88%)
Taking everything into account, RHM scores 6 out of 10 in our fundamental rating. RHM was compared to 45 industry peers in the Aerospace & Defense industry. RHM has an excellent profitability rating, but there are some minor concerns on its financial health. RHM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make RHM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
RHM had positive earnings in the past year.
RHM had a positive operating cash flow in the past year.
Of the past 5 years RHM 4 years were profitable.
RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.63%, RHM is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
RHM's Return On Equity of 18.45% is fine compared to the rest of the industry. RHM outperforms 68.89% of its industry peers.
RHM has a Return On Invested Capital of 14.83%. This is amongst the best in the industry. RHM outperforms 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.43%.
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
RHM has a Profit Margin of 7.70%. This is in the better half of the industry: RHM outperforms 71.11% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
RHM has a better Operating Margin (13.50%) than 77.78% of its industry peers.
In the last couple of years the Operating Margin of RHM has grown nicely.
Looking at the Gross Margin, with a value of 51.30%, RHM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
RHM's Gross Margin has been stable in the last couple of years.
| 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.
RHM has about the same amout of shares outstanding than it did 1 year ago.
RHM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.05 indicates that RHM is not in any danger for bankruptcy at the moment.
The Altman-Z score of RHM (6.05) is better than 88.89% 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.
RHM has a Debt to FCF ratio of 5.20. This is comparable to the rest of the industry: RHM outperforms 57.78% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that RHM is not too dependend on debt financing.
RHM has a Debt to Equity ratio of 0.27. This is in the better half of the industry: RHM outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 6.05 |
ROIC/WACC2.07
WACC7.17%
2.3 Liquidity
RHM has a Current Ratio of 1.15. This is a normal value and indicates that RHM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, RHM perfoms like the industry average, outperforming 42.22% 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.
Looking at the Quick ratio, with a value of 0.47, RHM is doing worse than 80.00% of the companies in the same industry.
| 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.
RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
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
Based on estimates for the next years, RHM will show a very strong growth in Earnings Per Share. The EPS will grow by 50.02% on average per year.
The Revenue is expected to grow by 31.07% on average over the next years. This is a very strong growth
EPS Next Y83.96%
EPS Next 2Y66.06%
EPS Next 3Y60.16%
EPS Next 5Y50.02%
Revenue Next Year26.46%
Revenue Next 2Y30.55%
Revenue Next 3Y32.13%
Revenue Next 5Y31.07%
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 86.26, which means the current valuation is very expensive for RHM.
68.89% of the companies in the same industry are cheaper than RHM, based on the Price/Earnings ratio.
RHM is valuated expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.47, RHM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 71.11% 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 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.26 | ||
| Fwd PE | 37.47 |
4.2 Price Multiples
RHM's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. RHM is more expensive than 82.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 194.65 | ||
| EV/EBITDA | 40.72 |
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 RHM may justify a higher PE ratio.
RHM's earnings are expected to grow with 60.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)5.64
EPS Next 2Y66.06%
EPS Next 3Y60.16%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.50%, which is pretty low.
RHM's Dividend Yield is slightly below the industry average, which is at 1.27.
With a Dividend Yield of 0.50, RHM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 2Y66.06%
EPS Next 3Y60.16%
FRA:RHM (8/26/2025, 7:00:00 PM)
1635.5
-14.5 (-0.88%)
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 Cap75.13B
Analysts81.9
Price Target2092.77 (27.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)5.55%
PT rev (3m)31.5%
EPS NQ rev (1m)-29.24%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.79%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)-10.54%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.26 | ||
| Fwd PE | 37.47 | ||
| P/S | 7.04 | ||
| P/FCF | 194.65 | ||
| P/OCF | 60.69 | ||
| P/B | 16.87 | ||
| P/tB | 43.26 | ||
| EV/EBITDA | 40.72 |
EPS(TTM)18.96
EY1.16%
EPS(NY)43.65
Fwd EY2.67%
FCF(TTM)8.4
FCFY0.51%
OCF(TTM)26.95
OCFY1.65%
SpS232.28
BVpS96.97
TBVpS37.81
PEG (NY)1.03
PEG (5Y)5.64
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 | 6.05 |
F-Score6
WACC7.17%
ROIC/WACC2.07
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 Y83.96%
EPS Next 2Y66.06%
EPS Next 3Y60.16%
EPS Next 5Y50.02%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
Revenue Next Year26.46%
Revenue Next 2Y30.55%
Revenue Next 3Y32.13%
Revenue Next 5Y31.07%
EBIT growth 1Y45.12%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y44.6%
FCF growth 1Y208.8%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y143.7%
OCF growth 3Y35.59%
OCF growth 5Y23.4%