RHEINMETALL AG (RHM.DE) Stock Fundamental Analysis
FRA:RHM - Deutsche Boerse Ag - DE0007030009 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to RHM. RHM was compared to 43 industry peers in the Aerospace & Defense industry. RHM gets an excellent profitability rating and is at the same time showing great financial health properties. 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
RHM had positive earnings in the past year.
RHM had a positive operating cash flow in the past year.
RHM had positive earnings in 4 of the past 5 years.
In the past 5 years RHM always reported a positive cash flow from operatings.
1.2 Ratios
RHM has a better Return On Assets (5.14%) than 74.42% of its industry peers.
The Return On Equity of RHM (16.85%) is better than 65.12% of its industry peers.
RHM has a Return On Invested Capital of 14.50%. This is amongst the best in the industry. RHM outperforms 86.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHM is above the industry average of 9.16%.
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 65.12% of its industry peers.
RHM's Profit Margin has improved in the last couple of years.
The Operating Margin of RHM (13.85%) is better than 79.07% of its industry peers.
In the last couple of years the Operating Margin of RHM has grown nicely.
With a decent Gross Margin value of 50.81%, RHM is doing good in the industry, outperforming 79.07% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHM is creating value.
The number of shares outstanding for RHM remains at a similar level compared to 1 year ago.
RHM has more shares outstanding than it did 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 6.35. 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 6.35, RHM belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.16, RHM belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that RHM is not too dependend on debt financing.
RHM has a better Debt to Equity ratio (0.34) than 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.35 |
ROIC/WACC1.99
WACC7.27%
2.3 Liquidity
RHM has a Current Ratio of 1.21. This is a normal value and indicates that RHM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RHM (1.21) is comparable to the rest of the industry.
A Quick Ratio of 0.57 indicates that RHM may have some problems paying its short term obligations.
RHM has a worse Quick ratio (0.57) than 76.74% 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 21.58% over the past year.
The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
The Revenue has grown by 41.65% 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)21.58%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%75.49%
Revenue 1Y (TTM)41.65%
Revenue growth 3Y19.89%
Revenue growth 5Y9.29%
Sales Q2Q%45.79%
3.2 Future
The Earnings Per Share is expected to grow by 47.45% on average over the next years. This is a very strong growth
RHM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.33% yearly.
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 5Y25.33%
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
The Price/Earnings ratio is 113.64, which means the current valuation is very expensive for RHM.
Based on the Price/Earnings ratio, RHM is valued a bit more expensive than 72.09% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, RHM is valued quite expensively.
RHM is valuated quite expensively with a Price/Forward Earnings ratio of 40.61.
69.77% of the companies in the same industry are cheaper than RHM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, RHM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.64 | ||
| Fwd PE | 40.61 |
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 76.74% of the companies listed 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 | 55.91 | ||
| EV/EBITDA | 43.61 |
4.3 Compensation for Growth
The 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)1.27
PEG (5Y)7.43
EPS Next 2Y67.28%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
RHM has a yearly dividend return of 0.48%, which is pretty low.
RHM's Dividend Yield is slightly below the industry average, which is at 1.31.
Compared to an average S&P500 Dividend Yield of 2.36, RHM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
RHM pays out 32.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of RHM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.93%
EPS Next 2Y67.28%
EPS Next 3Y57.98%
FRA:RHM (5/21/2025, 4:25:07 PM)
1799
+19 (+1.07%)
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 Cap82.02B
Analysts82.61
Price Target1591.5 (-11.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend5.71
Dividend Growth(5Y)22.25%
DP32.93%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)5.49%
PT rev (3m)108.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.64 | ||
| Fwd PE | 40.61 | ||
| P/S | 7.83 | ||
| P/FCF | 55.91 | ||
| P/OCF | 36.5 | ||
| P/B | 18.35 | ||
| P/tB | 48.56 | ||
| EV/EBITDA | 43.61 |
EPS(TTM)15.83
EY0.88%
EPS(NY)44.29
Fwd EY2.46%
FCF(TTM)32.18
FCFY1.79%
OCF(TTM)49.29
OCFY2.74%
SpS229.77
BVpS98.05
TBVpS37.05
PEG (NY)1.27
PEG (5Y)7.43
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 | 6.35 |
F-Score6
WACC7.27%
ROIC/WACC1.99
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)21.58%
EPS 3Y33.06%
EPS 5Y15.3%
EPS Q2Q%75.49%
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 5Y25.33%
EBIT growth 1Y66.21%
EBIT growth 3Y30.76%
EBIT growth 5Y23.18%
EBIT Next Year74.15%
EBIT Next 3Y48.03%
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%