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 43 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. These ratings could make RHM a good candidate 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.
RHM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RHM has a Return On Assets of 5.14%. This is in the better half of the industry: RHM outperforms 76.74% of its industry peers.
The Return On Equity of RHM (16.85%) is better than 67.44% of its industry peers.
With an excellent Return On Invested Capital value of 14.50%, RHM belongs to the best of the industry, outperforming 83.72% 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 8.85%.
The 3 year average ROIC (11.89%) for RHM is below the current ROIC(14.50%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.19%, RHM is doing good in the industry, outperforming 67.44% of the companies in the same industry.
RHM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.85%, RHM belongs to the top of the industry, outperforming 81.40% 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 79.07% of its industry peers.
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 | 13.85% | ||
| 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.
The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RHM has more shares outstanding
Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
RHM has an Altman-Z score of 6.34. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RHM (6.34) is better than 90.70% 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.
The Debt to FCF ratio of RHM (1.16) is better than 88.37% of its industry peers.
RHM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
RHM has a Debt to Equity ratio of 0.34. This is in the better half of the industry: RHM outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.34 |
ROIC/WACC2.03
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.21 indicates that RHM should not have too much problems paying its short term obligations.
RHM's Current ratio of 1.21 is in line compared to the rest of the industry. RHM outperforms 44.19% of its industry peers.
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.
RHM's Quick ratio of 0.57 is on the low side compared to the rest of the industry. RHM is outperformed by 74.42% of its industry peers.
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
The Earnings Per Share has grown by an impressive 28.30% over the past year.
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 41.65%.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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 47.45% yearly.
Based on estimates for the next years, RHM will show a very strong growth in Revenue. The Revenue will grow by 26.40% on average per year.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.45%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y26.4%
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
With a Price/Earnings ratio of 100.45, RHM can be considered very expensive at the moment.
RHM's Price/Earnings ratio is a bit more expensive when compared to the industry. RHM is more expensive than 74.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (26.59), we can say RHM is valued expensively.
The Price/Forward Earnings ratio is 37.74, 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 the industry average as 67.44% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (22.39), we can say RHM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.45 | ||
| Fwd PE | 37.74 |
4.2 Price Multiples
76.74% of the companies in the same industry are cheaper than RHM, based on the Enterprise Value to EBITDA ratio.
RHM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.02 | ||
| EV/EBITDA | 43.54 |
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 57.98% in the coming years.
PEG (NY)1.13
PEG (5Y)6.57
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, RHM is not a good candidate for dividend investing.
RHM's Dividend Yield is slightly below the industry average, which is at 1.16.
With a Dividend Yield of 0.43, RHM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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.
RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
FRA:RHM (6/10/2025, 7:00:00 PM)
1671.5
-103 (-5.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners41.98%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap76.32B
Analysts81.82
Price Target1887.38 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)22.42%
PT rev (3m)107.85%
EPS NQ rev (1m)-13.06%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.45 | ||
| Fwd PE | 37.74 | ||
| P/S | 7.29 | ||
| P/FCF | 52.02 | ||
| P/OCF | 33.97 | ||
| P/B | 17.07 | ||
| P/tB | 45.19 | ||
| EV/EBITDA | 43.54 |
EPS(TTM)16.64
EY1%
EPS(NY)44.29
Fwd EY2.65%
FCF(TTM)32.13
FCFY1.92%
OCF(TTM)49.21
OCFY2.94%
SpS229.41
BVpS97.9
TBVpS36.99
PEG (NY)1.13
PEG (5Y)6.57
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 | 6.34 |
F-Score6
WACC7.15%
ROIC/WACC2.03
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 5Y47.45%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y26.4%
EBIT growth 1Y66.21%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y37.69%
FCF growth 1Y762.94%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y323.96%
OCF growth 3Y35.59%
OCF growth 5Y23.4%