RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1920 EUR
+18 (+0.95%)
We assign a fundamental rating of 6 out of 10 to RHM. RHM was compared to 54 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 expensively, but it does show have an excellent growth rating.
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 5.36%. This is in the better half of the industry: RHM outperforms 72.22% of its industry peers.
- The Return On Equity of RHM (17.96%) is better than 70.37% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.80%, RHM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RHM is above the industry average of 9.17%.
- 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
- Looking at the Profit Margin, with a value of 7.63%, RHM is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
- In the last couple of years the Profit Margin of RHM has grown nicely.
- The Operating Margin of RHM (13.41%) is better than 81.48% of its industry peers.
- In the last couple of years the Operating Margin of RHM has grown nicely.
- RHM has a Gross Margin of 52.12%. This is in the better half of the industry: RHM outperforms 79.63% 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 just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
- 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
- RHM has an Altman-Z score of 6.29. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- RHM's Altman-Z score of 6.29 is amongst the best of the industry. RHM outperforms 85.19% of its industry peers.
- RHM has a debt to FCF ratio of 25.05. This is a negative value and a sign of low solvency as RHM would need 25.05 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 25.05, RHM is not doing good in the industry: 68.52% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, RHM is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.29 |
ROIC/WACC1.76
WACC8.42%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
- RHM's Current ratio of 1.14 is in line compared to the rest of the industry. RHM outperforms 40.74% of its industry peers.
- A Quick Ratio of 0.49 indicates that RHM may have some problems paying its short term obligations.
- RHM's Quick ratio of 0.49 is on the low side compared to the rest of the industry. RHM is outperformed by 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.07%, 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 24.61%.
- 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)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 47.18% on average per year.
- RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.02% yearly.
EPS Next Y71.24%
EPS Next 2Y62.85%
EPS Next 3Y58.18%
EPS Next 5Y47.18%
Revenue Next Year23.18%
Revenue Next 2Y29.45%
Revenue Next 3Y31.6%
Revenue Next 5Y30.02%
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
- A Price/Earnings ratio of 99.90 indicates a quite expensive valuation of RHM.
- Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 68.52% of the companies in the same industry.
- 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.
- A Price/Forward Earnings ratio of 45.73 indicates a quite expensive valuation of RHM.
- Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 62.96% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.9 | ||
| Fwd PE | 45.73 |
4.2 Price Multiples
- 74.07% of the companies in the same industry are cheaper than RHM, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 910.51 | ||
| EV/EBITDA | 45.69 |
4.3 Compensation for Growth
- The 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 58.18% in the coming years.
PEG (NY)1.4
PEG (5Y)6.53
EPS Next 2Y62.85%
EPS Next 3Y58.18%
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 0.75.
- Compared to an average S&P500 Dividend Yield of 1.84, 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
- 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 2Y62.85%
EPS Next 3Y58.18%
FRA:RHM (1/19/2026, 5:36:15 PM)
1920
+18 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-06 2025-11-06/dmh
Earnings (Next)03-11 2026-03-11/amc
Inst Owners45.42%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap88.32B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts83.2
Price Target2232.57 (16.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)-0.73%
PT rev (3m)2.63%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)-2.3%
EPS NY rev (3m)-7.97%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.9 | ||
| Fwd PE | 45.73 | ||
| P/S | 8.03 | ||
| P/FCF | 910.51 | ||
| P/OCF | 87.36 | ||
| P/B | 18.9 | ||
| P/tB | 46.34 | ||
| EV/EBITDA | 45.69 |
EPS(TTM)19.22
EY1%
EPS(NY)41.98
Fwd EY2.19%
FCF(TTM)2.11
FCFY0.11%
OCF(TTM)21.98
OCFY1.14%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.4
PEG (5Y)6.53
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 | 6.29 |
F-Score5
WACC8.42%
ROIC/WACC1.76
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 Y71.24%
EPS Next 2Y62.85%
EPS Next 3Y58.18%
EPS Next 5Y47.18%
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 5Y30.02%
EBIT growth 1Y32.76%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.21%
EBIT Next 3Y53.32%
EBIT Next 5Y44.03%
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 for RHM 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.
Can you provide the dividend sustainability for RHM stock?
The dividend rating of RHEINMETALL AG (RHM.DE) is 4 / 10 and the dividend payout ratio is 43.98%.