Rheinmetall (RHM) AI Stock Analysis

• Market Cap: €87.17B
• Dividend Yield: 0.53%
• Average Volume (3M): 243.19K
• Price to Earnings (P/E): 100.0
• Beta (1Y): 0.91
• Revenue Growth: 24.61%
• EPS Growth: 45.20%
• Country: DE
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.30
• Shares Outstanding: 46,002,533
• 10 Day Avg. Volume: 250,890
• 30 Day Avg. Volume: 243,188
• PEG Ratio: 1.22
• Price to Book (P/B): 6.10
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 25.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €2,165.78
• Price Target Upside: 13.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €1,629.00 ▼(-14.26% Downside)

Rheinmetall's strong financial performance is offset by technical indicators suggesting a bearish trend and a high P/E ratio indicating potential overvaluation. The decline in free cash flow growth is a notable risk, while the lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion.

Market Position

As a leader in defense and automotive sectors, Rheinmetall benefits from a strong competitive position, securing government contracts and partnerships.

Profitability

High profitability margins reflect efficient operations and pricing power, contributing to sustained financial health and competitive advantage.

Negative Factors

Free Cash Flow Decline

The sharp decline in free cash flow growth could hinder future investments and financial flexibility, impacting long-term stability.

Cash Flow Efficiency

Low cash flow efficiency relative to net income suggests potential challenges in converting earnings into cash, affecting liquidity management.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and investor insights into management's strategic direction and future outlook.

Rheinmetall Business Overview & Revenue Model

Company Description

Rheinmetall AG provides technologies to the mobility and security sectors worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, support, logistics, and special vehicles, including armored tracked vehicles, CBRN protection systems, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides threat-appropriate, effective and accurate firepower, and protection solutions, such as large and medium-caliber weapons and ammunition, weapon stations, protection systems, and propellants and powders. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment focuses on the development of system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.

How the Company Makes Money

Rheinmetall generates revenue primarily through the sale of defense products and automotive components. The Defense sector is a significant revenue driver, benefiting from government contracts for military equipment, including armored vehicles, artillery systems, and munitions. The Automotive division earns income by supplying parts and systems to major automotive manufacturers, focusing on engine management and emission control technologies. Additionally, Rheinmetall engages in partnerships with defense ministries and private sector entities, enhancing its market presence and securing long-term contracts. The company's ongoing investment in research and development further positions it to capitalize on emerging technologies, contributing to sustained revenue growth.

Rheinmetall Financial Statement Overview

Summary

Rheinmetall demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is stable with manageable leverage, though the increase in debt should be monitored. Cash flow performance is mixed, with a significant drop in free cash flow growth, highlighting a potential area of concern.

Income Statement

Rheinmetall shows strong revenue growth with a TTM increase of 1.87% and consistent profitability margins. The gross profit margin remains robust at over 50%, and the net profit margin is stable around 7%. EBIT and EBITDA margins are healthy, indicating efficient operations. Overall, the income statement reflects a strong financial performance with steady growth and profitability.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.38 in the TTM, indicating manageable leverage. Return on equity is strong at 19.91%, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -73.74% in the TTM, which is a concern. However, the operating cash flow to net income ratio is reasonable, indicating that operating activities are generating sufficient cash relative to net income. The free cash flow to net income ratio is also healthy, but the recent decline in free cash flow growth needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.00B	9.75B	7.18B	6.41B	5.66B	5.88B
Gross Profit	4.92B	5.06B	3.94B	3.38B	3.03B	2.94B
EBITDA	1.96B	1.77B	1.23B	960.00M	850.00M	644.00M
Net Income	840.00M	717.00M	535.00M	474.00M	291.00M	1.00M
Balance Sheet
Total Assets	15.66B	14.34B	11.94B	8.09B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	557.00M	1.25B	915.00M	696.00M	1.22B	1.04B
Total Debt	2.43B	2.42B	1.91B	972.00M	921.00M	1.02B
Total Liabilities	10.51B	9.88B	8.30B	5.01B	5.11B	5.21B
Stockholders Equity	4.67B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow
Free Cash Flow	98.00M	988.00M	345.00M	-175.00M	419.00M	216.00M
Operating Cash Flow	1.01B	1.72B	743.00M	174.00M	690.00M	453.00M
Investing Cash Flow	-1.36B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
Financing Cash Flow	447.00M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RHM, the sentiment is Positive. The current price of 1900 is above the 20-day moving average (MA) of 1624.30, above the 50-day MA of 1627.53, and above the 200-day MA of 1691.14, indicating a bullish trend. The MACD of 59.21 indicates Negative momentum. The RSI at 75.67 is Negative, neither overbought nor oversold. The STOCH value of 96.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RHM.

Rheinmetall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTX	76 Outperform	€20.64B	24.23	24.74%	0.62%	45.24%	―
ENR	72 Outperform	$107.21B	74.96	14.04%	―	13.38%	22.22%
8TRA	68 Neutral	€15.76B	8.86	10.20%	5.67%	-7.11%	-30.83%
HAG	68 Neutral	€10.55B	85.04	15.96%	0.68%	14.89%	619.09%
RHM	63 Neutral	€87.17B	100.03	21.48%	0.53%	24.61%	45.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OHB	59 Neutral	€2.66B	433.29	1.49%	0.51%	10.80%	-91.79%