RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RHM - DE0007030009 - Common Stock
1779 EUR
-74.5 (-4.02%)
RHM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year RHM was profitable.
- In the past year RHM had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 5.36%, RHM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- RHM has a Return On Equity of 17.96%. This is in the better half of the industry: RHM outperforms 70.37% of its industry peers.
- RHM has a Return On Invested Capital of 14.80%. This is amongst the best in the industry. RHM outperforms 88.89% of its industry peers.
- RHM had an Average Return On Invested Capital over the past 3 years of 11.89%. This is above the industry average of 9.17%.
- 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
- RHM has a better Profit Margin (7.63%) than 62.96% of its industry peers.
- RHM's Profit Margin has improved in the last couple of years.
- 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's Gross Margin of 52.12% is fine compared to the rest of the industry. RHM outperforms 79.63% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RHM is creating some value.
- Compared to 1 year ago, RHM has about the same amount of shares outstanding.
- The number of shares outstanding for RHM has been increased compared to 5 years ago.
- Compared to 1 year ago, RHM has a worse debt to assets ratio.
2.2 Solvency
- RHM has an Altman-Z score of 6.16. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
- RHM has a better Altman-Z score (6.16) than 85.19% of its industry peers.
- The Debt to FCF ratio of RHM is 25.05, which is on the high side as it means it would take RHM, 25.05 years of fcf income to pay off all of its debts.
- RHM has a Debt to FCF ratio of 25.05. This is in the lower half of the industry: RHM underperforms 68.52% of its industry peers.
- RHM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of RHM (0.26) is better than 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 25.05 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.76
WACC8.42%
2.3 Liquidity
- RHM has a Current Ratio of 1.14. 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 1.14, RHM perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
- A Quick Ratio of 0.49 indicates that RHM may have some problems paying its short term obligations.
- The Quick ratio of RHM (0.49) is worse than 79.63% 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.
- RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.61%.
- The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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
- 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 92.56, the valuation of RHM can be described as expensive.
- 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 (27.32), we can say RHM is valued expensively.
- Based on the Price/Forward Earnings ratio of 42.37, the valuation of RHM can be described as expensive.
- 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 61.11% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. RHM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.56 | ||
| Fwd PE | 42.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 72.22% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RHM is valued a bit more expensive than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 843.65 | ||
| EV/EBITDA | 44.55 |
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.
- RHM's earnings are expected to grow with 58.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)6.05
EPS Next 2Y62.85%
EPS Next 3Y58.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.42%, RHM is not a good candidate for dividend investing.
- RHM's Dividend Yield is comparable with the industry average which is at 0.75.
- Compared to an average S&P500 Dividend Yield of 1.86, 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.
- RHM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.98%
EPS Next 2Y62.85%
EPS Next 3Y58.18%
FRA:RHM (1/22/2026, 4:55:14 PM)
1779
-74.5 (-4.02%)
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 Cap81.83B
Revenue(TTM)11.00B
Net Income(TTM)839.00M
Analysts83.2
Price Target2232.57 (25.5%)
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 | 92.56 | ||
| Fwd PE | 42.37 | ||
| P/S | 7.44 | ||
| P/FCF | 843.65 | ||
| P/OCF | 80.94 | ||
| P/B | 17.52 | ||
| P/tB | 42.93 | ||
| EV/EBITDA | 44.55 |
EPS(TTM)19.22
EY1.08%
EPS(NY)41.98
Fwd EY2.36%
FCF(TTM)2.11
FCFY0.12%
OCF(TTM)21.98
OCFY1.24%
SpS239.09
BVpS101.57
TBVpS41.43
PEG (NY)1.3
PEG (5Y)6.05
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 | 6.16 |
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 3 / 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%.