RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1616 EUR
+13.5 (+0.84%)
Taking everything into account, RHM scores 6 out of 10 in our fundamental rating. RHM was compared to 49 industry peers in the Aerospace & Defense industry. RHM has an excellent profitability rating, but 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
RHM had positive earnings in the past year.
RHM had a positive operating cash flow in the past year.
Of the past 5 years RHM 4 years were profitable.
In the past 5 years RHM always reported a positive cash flow from operatings.
1.2 Ratios
RHM's Return On Assets of 5.36% is fine compared to the rest of the industry. RHM outperforms 71.43% of its industry peers.
The Return On Equity of RHM (17.96%) is better than 67.35% of its industry peers.
RHM has a Return On Invested Capital of 14.80%. This is amongst the best in the industry. RHM outperforms 89.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.30%.
The last Return On Invested Capital (14.80%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
The Profit Margin of RHM (7.63%) is better than 69.39% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
The Operating Margin of RHM (13.41%) is better than 81.63% of its industry peers.
RHM's Operating Margin has improved in the last couple of years.
RHM has a Gross Margin of 52.12%. This is amongst the best in the industry. RHM outperforms 81.63% 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 | 13.41% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHM is creating value.
Compared to 1 year ago, RHM has about the same amount of shares outstanding.
RHM has more shares outstanding than it did 5 years ago.
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
RHM has an Altman-Z score of 5.53. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
RHM has a better Altman-Z score (5.53) than 87.76% 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.
The Debt to FCF ratio of RHM (25.05) is worse than 69.39% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that RHM is not too dependend on debt financing.
The Debt to Equity ratio of RHM (0.26) is better than 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 5.53 |
ROIC/WACC2.01
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.14 indicates that RHM should not have too much problems paying its short term obligations.
RHM has a Current ratio (1.14) which is comparable to the rest of the industry.
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.
RHM's Quick ratio of 0.49 is on the low side compared to the rest of the industry. RHM is outperformed by 79.59% of its industry peers.
| 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.
RHM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.30% yearly.
The Revenue has grown by 24.61% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 47.46% on average over the next years. This is a very strong growth
Based on estimates for the next years, RHM will show a very strong growth in Revenue. The Revenue will grow by 30.08% on average per year.
EPS Next Y79.15%
EPS Next 2Y63.91%
EPS Next 3Y59.24%
EPS Next 5Y47.46%
Revenue Next Year23.58%
Revenue Next 2Y29.65%
Revenue Next 3Y31.8%
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.
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
Based on the Price/Earnings ratio of 84.08, the valuation of RHM can be described as expensive.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
RHM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.54.
A Price/Forward Earnings ratio of 38.00 indicates a quite expensive valuation of RHM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 65.31% of the companies listed in the same industry.
RHM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.08 | ||
| Fwd PE | 38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than 75.51% 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 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 766.35 | ||
| EV/EBITDA | 38.64 |
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 59.24% in the coming years.
PEG (NY)1.06
PEG (5Y)5.5
EPS Next 2Y63.91%
EPS Next 3Y59.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, RHM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.18, RHM has a dividend in line with its industry peers.
With a Dividend Yield of 0.53, RHM pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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
43.98% of the earnings are spent on dividend by RHM. 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 2Y63.91%
EPS Next 3Y59.24%
FRA:RHM (12/12/2025, 7:00:00 PM)
1616
+13.5 (+0.84%)
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 Cap74.34B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts81.54
Price Target2248.9 (39.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)2.3%
PT rev (3m)6.8%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-10.75%
EPS NY rev (1m)-2.87%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.08 | ||
| Fwd PE | 38 | ||
| P/S | 6.76 | ||
| P/FCF | 766.35 | ||
| P/OCF | 73.53 | ||
| P/B | 15.91 | ||
| P/tB | 39 | ||
| EV/EBITDA | 38.64 |
EPS(TTM)19.22
EY1.19%
EPS(NY)42.53
Fwd EY2.63%
FCF(TTM)2.11
FCFY0.13%
OCF(TTM)21.98
OCFY1.36%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.06
PEG (5Y)5.5
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 | 5.53 |
F-Score5
WACC7.37%
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)38.07%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%8.52%
EPS Next Y79.15%
EPS Next 2Y63.91%
EPS Next 3Y59.24%
EPS Next 5Y47.46%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%13.33%
Revenue Next Year23.58%
Revenue Next 2Y29.65%
Revenue Next 3Y31.8%
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%.