RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - Deutsche Boerse Ag - DE0007030009 - Common Stock - Currency: EUR
RHM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 45 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 is valued quite expensively, but it does show have an excellent growth rating. This makes RHM very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
RHM had positive earnings in the past year.
In the past year RHM had a positive cash flow from operations.
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
The Return On Assets of RHM (5.14%) is better than 73.33% of its industry peers.
RHM has a better Return On Equity (16.85%) than 64.44% of its industry peers.
RHM has a Return On Invested Capital of 14.50%. This is amongst the best in the industry. RHM outperforms 82.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 8.98%.
The last Return On Invested Capital (14.50%) for RHM is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
RHM has a better Profit Margin (7.19%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of RHM has grown nicely.
RHM has a Operating Margin of 13.85%. This is in the better half of the industry: RHM outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of RHM has grown nicely.
Looking at the Gross Margin, with a value of 50.81%, RHM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
RHM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHM 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
RHM has a worse debt/assets ratio than last year.
2.2 Solvency
RHM has an Altman-Z score of 6.55. This indicates that RHM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.55, RHM belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of RHM is 1.16, which is an excellent value as it means it would take RHM, only 1.16 years of fcf income to pay off all of its debts.
RHM's Debt to FCF ratio of 1.16 is amongst the best of the industry. RHM outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RHM is not too dependend on debt financing.
The Debt to Equity ratio of RHM (0.34) is better than 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.55 |
ROIC/WACC2.02
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.21 indicates that RHM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, RHM perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
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.
The Quick ratio of RHM (0.57) is worse than 80.00% of its industry peers.
The current and quick ratio evaluation for RHM is rather negative, while it does have 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
RHM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
Measured over the past years, RHM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
RHM shows a strong growth in Revenue. In the last year, the Revenue has grown by 41.65%.
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)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 47.05% yearly.
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.04% yearly.
EPS Next Y89.24%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
EPS Next 5Y47.05%
Revenue Next Year26.43%
Revenue Next 2Y29.66%
Revenue Next 3Y30.02%
Revenue Next 5Y29.04%
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
With a Price/Earnings ratio of 112.98, RHM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RHM indicates a slightly more expensive valuation: RHM is more expensive than 73.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RHM to the average of the S&P500 Index (27.41), we can say RHM is valued expensively.
With a Price/Forward Earnings ratio of 42.44, RHM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RHM is valued a bit more expensive than 68.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RHM to the average of the S&P500 Index (35.19), we can say RHM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.98 | ||
| Fwd PE | 42.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHM is valued a bit more expensive than 77.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.81 | ||
| EV/EBITDA | 45.36 |
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.
RHM's earnings are expected to grow with 57.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)7.39
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 1.09, RHM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
32.93% of the earnings are spent on dividend by RHM. This is a low number and 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 (7/14/2025, 5:36:15 PM)
1880
+40 (+2.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.64%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap86.27B
Analysts81.82
Price Target1899.18 (1.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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)0.62%
PT rev (3m)25.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.98 | ||
| Fwd PE | 42.44 | ||
| P/S | 8.24 | ||
| P/FCF | 58.81 | ||
| P/OCF | 38.39 | ||
| P/B | 19.3 | ||
| P/tB | 51.08 | ||
| EV/EBITDA | 45.36 |
EPS(TTM)16.64
EY0.89%
EPS(NY)44.29
Fwd EY2.36%
FCF(TTM)31.97
FCFY1.7%
OCF(TTM)48.96
OCFY2.6%
SpS228.26
BVpS97.41
TBVpS36.81
PEG (NY)1.27
PEG (5Y)7.39
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 | 6.55 |
F-Score6
WACC7.18%
ROIC/WACC2.02
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 5Y47.05%
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 5Y29.04%
EBIT growth 1Y66.21%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year75.78%
EBIT Next 3Y50.23%
EBIT Next 5Y41.54%
FCF growth 1Y762.94%
FCF growth 3Y33.1%
FCF growth 5Y25.85%
OCF growth 1Y323.96%
OCF growth 3Y35.59%
OCF growth 5Y23.4%