RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1541 EUR
-4 (-0.26%)
RHM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 47 industry peers in the Aerospace & Defense industry. While RHM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RHM is valued quite expensive, but it does show an excellent growth.
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.
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
RHM has a better Return On Assets (5.36%) than 70.21% of its industry peers.
With a decent Return On Equity value of 17.96%, RHM is doing good in the industry, outperforming 65.96% of the companies in the same industry.
RHM's Return On Invested Capital of 14.80% is amongst the best of the industry. RHM outperforms 87.23% of its industry peers.
RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.56%.
The 3 year average ROIC (11.89%) for RHM is below the current ROIC(14.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 17.96% | ||
| ROIC | 14.8% |
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 7.63%, RHM is doing good in the industry, outperforming 68.09% of the companies in the same industry.
In the last couple of years the Profit Margin of RHM has grown nicely.
Looking at the Operating Margin, with a value of 13.41%, RHM is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
In the last couple of years the Operating Margin of RHM has grown nicely.
The Gross Margin of RHM (52.12%) is better than 82.98% of its industry peers.
RHM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.41% | ||
| PM (TTM) | 7.63% | ||
| GM | 52.12% |
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
RHM 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, RHM has about the same amount of shares outstanding.
The number of shares outstanding for RHM has been increased compared to 5 years ago.
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.38 indicates that RHM is not in any danger for bankruptcy at the moment.
RHM has a Altman-Z score of 5.38. This is amongst the best in the industry. RHM outperforms 85.11% of its industry peers.
The Debt to FCF ratio of RHM is 25.05, which is on the high side as it means it would take RHM, 25.05 years of fcf income to pay off all of its debts.
RHM has a Debt to FCF ratio of 25.05. This is in the lower half of the industry: RHM underperforms 72.34% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
RHM has a better Debt to Equity ratio (0.26) than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.89
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
The Current ratio of RHM (1.14) is worse than 61.70% of its industry peers.
RHM has a Quick Ratio of 1.14. This is a bad value and indicates that RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.49, RHM is not doing good in the industry: 82.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.07% over the past year.
The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
Looking at the last year, RHM shows a very strong growth in Revenue. The Revenue has grown by 24.61%.
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)38.07%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%8.52%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
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 47.46% on average per year.
The Revenue is expected to grow by 30.08% on average over the next years. This is a very strong growth
EPS Next Y75.28%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
EPS Next 5Y47.46%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.08%
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 80.18, 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 70.21% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.59, RHM is valued quite expensively.
A Price/Forward Earnings ratio of 36.43 indicates a quite expensive valuation of RHM.
RHM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 65.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (24.03), we can say RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.18 | ||
| Fwd PE | 36.43 |
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 72.34% of the companies listed in the same industry.
72.34% of the companies in the same industry are cheaper than RHM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 730.78 | ||
| EV/EBITDA | 37.2 |
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.
A more expensive valuation may be justified as RHM's earnings are expected to grow with 59.11% in the coming years.
PEG (NY)1.07
PEG (5Y)5.24
EPS Next 2Y63.47%
EPS Next 3Y59.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, RHM is not a good candidate for dividend investing.
In the last 3 months the price of RHM has falen by -21.40%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RHM's Dividend Yield is comparable with the industry average which is at 0.87.
With a Dividend Yield of 0.52, RHM pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of RHM is nicely growing with an annual growth rate of 22.25%!
Dividend Growth(5Y)22.25%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
RHM pays out 43.98% of its income as dividend. 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.
DP43.98%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
FRA:RHM (12/23/2025, 7:00:00 PM)
1541
-4 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners45.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap70.89B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts81.54
Price Target2237.17 (45.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP43.98%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.21%
Min EPS beat(2)-23.31%
Max EPS beat(2)-3.11%
EPS beat(4)0
Avg EPS beat(4)-16.91%
Min EPS beat(4)-23.39%
Max EPS beat(4)-3.11%
EPS beat(8)0
Avg EPS beat(8)-24.24%
EPS beat(12)2
Avg EPS beat(12)-13.02%
EPS beat(16)4
Avg EPS beat(16)-12%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-2.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)11.46%
Revenue beat(8)3
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-0.92%
PT rev (1m)1.76%
PT rev (3m)5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.75%
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.18 | ||
| Fwd PE | 36.43 | ||
| P/S | 6.45 | ||
| P/FCF | 730.78 | ||
| P/OCF | 70.11 | ||
| P/B | 15.17 | ||
| P/tB | 37.19 | ||
| EV/EBITDA | 37.2 |
EPS(TTM)19.22
EY1.25%
EPS(NY)42.3
Fwd EY2.75%
FCF(TTM)2.11
FCFY0.14%
OCF(TTM)21.98
OCFY1.43%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.07
PEG (5Y)5.24
Graham Number209.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 17.96% | ||
| ROCE | 19.7% | ||
| ROIC | 14.8% | ||
| ROICexc | 15.99% | ||
| ROICexgc | 26.61% | ||
| OM | 13.41% | ||
| PM (TTM) | 7.63% | ||
| GM | 52.12% | ||
| FCFM | 0.88% |
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%
ROICexgc growth 3Y12.63%
ROICexgc 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-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 190.02% | ||
| Cap/Sales | 8.31% | ||
| Interest Coverage | 210.71 | ||
| Cash Conversion | 51.69% | ||
| Profit Quality | 11.56% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 5.38 |
F-Score5
WACC7.84%
ROIC/WACC1.89
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)38.07%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%8.52%
EPS Next Y75.28%
EPS Next 2Y63.47%
EPS Next 3Y59.11%
EPS Next 5Y47.46%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.08%
EBIT growth 1Y32.76%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year77.05%
EBIT Next 3Y53.51%
EBIT Next 5Y43.29%
FCF growth 1Y44.78%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y120.26%
OCF growth 3Y35.59%
OCF growth 5Y23.4%
RHEINMETALL AG / RHM.DE FAQ
What is the fundamental rating for RHM stock?
ChartMill assigns a fundamental rating of 6 / 10 to RHM.DE.
What is the valuation status of RHEINMETALL AG (RHM.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to RHEINMETALL AG (RHM.DE). This can be considered as Overvalued.
Can you provide the profitability details for RHEINMETALL AG?
RHEINMETALL AG (RHM.DE) has a profitability rating of 8 / 10.
What is the financial health of RHEINMETALL AG (RHM.DE) stock?
The financial health rating of RHEINMETALL AG (RHM.DE) is 4 / 10.
Is the dividend of RHEINMETALL AG sustainable?
The dividend rating of RHEINMETALL AG (RHM.DE) is 4 / 10 and the dividend payout ratio is 43.98%.