RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - FRA:RHM - DE0007030009 - Common Stock
1816 EUR
+35.5 (+1.99%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 42 industry peers in the Aerospace & Defense industry. RHM scores excellent on profitability, but there are some minor concerns on its financial health. RHM is valued quite expensive, but it does show an excellent growth. This makes RHM very considerable for growth 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.
Each year in the past 5 years RHM had a positive operating cash flow.
1.2 Ratios
RHM has a Return On Assets of 5.63%. This is in the better half of the industry: RHM outperforms 71.43% of its industry peers.
RHM's Return On Equity of 18.45% is fine compared to the rest of the industry. RHM outperforms 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.83%, RHM belongs to the best of the industry, outperforming 88.10% 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 9.51%.
The 3 year average ROIC (11.89%) for RHM is below the current ROIC(14.83%), indicating increased profibility in the last year.
| 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 71.43% 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 13.50%, RHM is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of RHM has grown nicely.
With a decent Gross Margin value of 51.30%, RHM is doing good in the industry, outperforming 76.19% of the companies in the same industry.
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
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.
Compared to 5 years ago, RHM has more shares outstanding
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
RHM has an Altman-Z score of 6.42. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
RHM has a better Altman-Z score (6.42) than 92.86% 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 57.14% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that RHM is not too dependend on debt financing.
RHM's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. RHM outperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 6.42 |
ROIC/WACC2.05
WACC7.25%
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.
RHM has a Current ratio of 1.15. This is comparable to the rest of the industry: RHM outperforms 40.48% of its industry peers.
A Quick Ratio of 0.47 indicates that RHM may have some problems paying its short term obligations.
RHM's Quick ratio of 0.47 is on the low side compared to the rest of the industry. RHM is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.85% over the past year.
RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
Looking at the last year, RHM shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 46.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 29.31% on average over the next years. This is a very strong growth
EPS Next Y86.07%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
EPS Next 5Y46.94%
Revenue Next Year26.34%
Revenue Next 2Y30.92%
Revenue Next 3Y31.99%
Revenue Next 5Y29.31%
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
A Price/Earnings ratio of 95.78 indicates a quite expensive valuation of RHM.
RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (27.77), we can say RHM is valued expensively.
The Price/Forward Earnings ratio is 41.06, which means the current valuation is very expensive for RHM.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (23.23), we can say RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.78 | ||
| Fwd PE | 41.06 |
4.2 Price Multiples
RHM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RHM is more expensive than 76.19% of the companies in the same industry.
RHM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RHM is more expensive than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 216.41 | ||
| EV/EBITDA | 43.93 |
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 60.58% in the coming years.
PEG (NY)1.11
PEG (5Y)6.26
EPS Next 2Y67.14%
EPS Next 3Y60.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, RHM is not a good candidate for dividend investing.
RHM's Dividend Yield is comparable with the industry average which is at 1.12.
With a Dividend Yield of 0.46, RHM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 44.89% 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.
DP44.89%
EPS Next 2Y67.14%
EPS Next 3Y60.58%
FRA:RHM (10/22/2025, 1:49:57 PM)
1816
+35.5 (+1.99%)
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 Cap83.54B
Revenue(TTM)10.67B
Net Income(TTM)822.00M
Analysts82.5
Price Target2175.36 (19.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)2.91%
PT rev (3m)14.54%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-31.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.78 | ||
| Fwd PE | 41.06 | ||
| P/S | 7.83 | ||
| P/FCF | 216.41 | ||
| P/OCF | 67.48 | ||
| P/B | 18.75 | ||
| P/tB | 48.09 | ||
| EV/EBITDA | 43.93 |
EPS(TTM)18.96
EY1.04%
EPS(NY)44.22
Fwd EY2.44%
FCF(TTM)8.39
FCFY0.46%
OCF(TTM)26.91
OCFY1.48%
SpS231.98
BVpS96.85
TBVpS37.76
PEG (NY)1.11
PEG (5Y)6.26
Graham Number203.26
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%
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-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 | 6.42 |
F-Score6
WACC7.25%
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 5Y46.94%
Revenue 1Y (TTM)31.24%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%8.77%
Revenue Next Year26.34%
Revenue Next 2Y30.92%
Revenue Next 3Y31.99%
Revenue Next 5Y29.31%
EBIT growth 1Y45.12%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year76.69%
EBIT Next 3Y52.41%
EBIT Next 5Y42.5%
FCF growth 1Y208.8%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y143.7%
OCF growth 3Y35.59%
OCF growth 5Y23.4%