RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - Deutsche Boerse Ag - DE0007030009 - Common Stock - Currency: EUR
Overall RHM gets a fundamental rating of 7 out of 10. We evaluated RHM against 46 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making RHM a very profitable company, without any liquidiy or solvency issues. RHM shows excellent growth, but is valued quite expensive already. With these ratings, RHM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year RHM was profitable.
RHM had a positive operating cash flow in the past year.
RHM had positive earnings in 4 of the past 5 years.
In the past 5 years RHM always reported a positive cash flow from operatings.
1.2 Ratios
RHM has a Return On Assets of 5.14%. This is in the better half of the industry: RHM outperforms 65.22% of its industry peers.
Looking at the Return On Equity, with a value of 16.85%, RHM is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
RHM has a better Return On Invested Capital (14.50%) than 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHM is above the industry average of 9.15%.
The last Return On Invested Capital (14.50%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
RHM's Profit Margin of 7.19% is in line compared to the rest of the industry. RHM outperforms 56.52% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
Looking at the Operating Margin, with a value of 13.85%, RHM belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
RHM's Operating Margin has improved in the last couple of years.
RHM has a Gross Margin of 50.81%. This is in the better half of the industry: RHM outperforms 78.26% of its industry peers.
RHM's Gross Margin has been stable in the last couple of years.
| 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
RHM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for RHM is higher compared to a year ago.
2.2 Solvency
RHM has an Altman-Z score of 6.19. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
RHM has a Altman-Z score of 6.19. This is amongst the best in the industry. RHM outperforms 89.13% of its industry peers.
RHM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
RHM's Debt to FCF ratio of 1.16 is amongst the best of the industry. RHM outperforms 89.13% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RHM is not too dependend on debt financing.
The Debt to Equity ratio of RHM (0.34) is better than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.19 |
ROIC/WACC2.01
WACC7.21%
2.3 Liquidity
RHM has a Current Ratio of 1.21. 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 1.21, RHM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
RHM has a Quick Ratio of 1.21. This is a bad value and indicates that RHM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.57, RHM is doing worse than 78.26% of the companies in the same industry.
RHM 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
RHM 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, RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
Looking at the last year, RHM shows a very strong growth in Revenue. The Revenue has grown by 41.65%.
RHM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.29% yearly.
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
RHM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.05% yearly.
The Revenue is expected to grow by 29.04% on average over the next years. This is a very strong growth
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue Next Year26.8%
Revenue Next 2Y30.53%
Revenue Next 3Y31.63%
Revenue Next 5Y29.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RHM is valuated quite expensively with a Price/Earnings ratio of 106.07.
Compared to the rest of the industry, the Price/Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 71.74% of the companies listed in the same industry.
RHM is valuated expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 39.85, the valuation of RHM can be described as expensive.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than the industry average as 63.04% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (36.21), we can say RHM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.07 | ||
| Fwd PE | 39.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHM indicates a rather expensive valuation: RHM more expensive than 82.61% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RHM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.27 | ||
| EV/EBITDA | 42.17 |
4.3 Compensation for Growth
RHM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RHM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RHM's earnings are expected to grow with 57.98% in the coming years.
PEG (NY)1.19
PEG (5Y)6.93
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.47%, which is pretty low.
RHM's Dividend Yield is slightly below the industry average, which is at 1.19.
With a Dividend Yield of 0.47, RHM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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
RHM pays out 32.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
FRA:RHM (8/4/2025, 5:36:16 PM)
1765
+57.5 (+3.37%)
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 Cap81.08B
Analysts81.82
Price Target1982.81 (12.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP32.93%
Div Incr Years1
Div Non Decr Years4
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)4.4%
PT rev (3m)28.61%
EPS NQ rev (1m)-4.95%
EPS NQ rev (3m)-17.36%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.07 | ||
| Fwd PE | 39.85 | ||
| P/S | 7.74 | ||
| P/FCF | 55.27 | ||
| P/OCF | 36.09 | ||
| P/B | 18.14 | ||
| P/tB | 48.01 | ||
| EV/EBITDA | 42.17 |
EPS(TTM)16.64
EY0.94%
EPS(NY)44.29
Fwd EY2.51%
FCF(TTM)31.93
FCFY1.81%
OCF(TTM)48.91
OCFY2.77%
SpS228.01
BVpS97.3
TBVpS36.77
PEG (NY)1.19
PEG (5Y)6.93
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 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 Turnover0.71
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 | 6.19 |
F-Score6
WACC7.21%
ROIC/WACC2.01
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 5Y47.05%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
Revenue Next Year26.8%
Revenue Next 2Y30.53%
Revenue Next 3Y31.63%
Revenue Next 5Y29.04%
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%