Rheinmetall AG (DE:RHM)
XETRA:RHM
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Rheinmetall
(XETRA:RHM)
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Rating:62Neutral
Price Target:
€1,437.00
▼(-3.89% Downside)
Action:ReiteratedDate:03/17/26
The score is driven by strong financial performance (improving profitability, stronger balance sheet, and robust free cash flow), but is held back by weak technicals (below key moving averages with negative MACD) and an expensive valuation (high P/E with a low dividend yield).
Positive Factors
Strong cash generation
Rheinmetall's marked OCF and FCF improvement to €2.29B/€1.41B in 2025 demonstrates durable cash-generation. Sustainable cash supports reinvestment in programs, lifecycle services, debt reduction and M&A optionality, enhancing long-term financial flexibility despite some working-capital drag.
Negative Factors
2025 revenue decline
A near-10% drop in 2025 revenue reduces top-line visibility and may reflect order timing or demand softening. For a business tied to multi-year procurements and automotive cycles, persistent revenue declines can pressure operating leverage and complicate multi-quarter planning and investment decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Rheinmetall's marked OCF and FCF improvement to €2.29B/€1.41B in 2025 demonstrates durable cash-generation. Sustainable cash supports reinvestment in programs, lifecycle services, debt reduction and M&A optionality, enhancing long-term financial flexibility despite some working-capital drag.
Read all positive factors
Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€63.10B
Dividend Yield0.53%
Average Volume (3M)243.19K
Price to Earnings (P/E)101.5
Beta (1Y)1.00
Revenue Growth1.89%
EPS Growth-7.46%
CountryDE
Employees29,515
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)14.06
Shares Outstanding46,557,404
10 Day Avg. Volume250,890
30 Day Avg. Volume243,188
Financial Highlights & Ratios
PEG Ratio-14.82
Price to Book (P/B)14.09
Price to Sales (P/S)7.11
P/FCF Ratio49.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2,063.18Price Target Upside37.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)38.91
Revenue Forecast (FY)€14.32B
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 S...
How the Company Makes Money
Rheinmetall makes money mainly by designing, manufacturing, and supporting defense equipment and by supplying technology products to industrial and automotive customers. Its core revenue streams include: (1) Defense platforms and systems sales: re...
Rheinmetall Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.94B | 9.75B | 7.18B | 6.41B | 5.66B |
| Gross Profit | 5.20B | 5.06B | 3.94B | 3.38B | 3.03B |
| EBITDA | 2.19B | 1.77B | 1.23B | 960.00M | 850.00M |
| Net Income | 696.00M | 717.00M | 535.00M | 474.00M | 291.00M |
Balance Sheet | |||||
| Total Assets | 17.08B | 14.34B | 11.94B | 8.09B | 7.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.69B | 1.25B | 915.00M | 696.00M | 1.22B |
| Total Debt | 1.28B | 2.42B | 1.91B | 972.00M | 921.00M |
| Total Liabilities | 11.46B | 9.88B | 8.30B | 5.01B | 5.11B |
| Stockholders Equity | 5.01B | 4.05B | 3.32B | 2.81B | 2.42B |
Cash Flow | |||||
| Free Cash Flow | 1.41B | 988.00M | 345.00M | -175.00M | 419.00M |
| Operating Cash Flow | 2.29B | 1.72B | 743.00M | 174.00M | 690.00M |
| Investing Cash Flow | -843.00M | -1.17B | -1.18B | -534.00M | -462.00M |
| Financing Cash Flow | -861.00M | -234.00M | 746.00M | -131.00M | -202.00M |
Rheinmetall Technical Analysis
Negative
1495.20
Price Trends
1576.17
Negative
1624.92
Negative
1698.22
Negative
Market Momentum
-22.64
Negative
46.18
Neutral
43.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RHM, the sentiment is Negative. The current price of 1495.2 is below the 20-day moving average (MA) of 1496.41, below the 50-day MA of 1576.17, and below the 200-day MA of 1698.22, indicating a bearish trend. The MACD of -22.64 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 43.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:RHM.
Rheinmetall Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | €5.31B | 45.14 | 12.09% | 0.51% | 21.37% | ― | |
62 Neutral | €63.10B | 101.47 | 14.96% | 0.53% | 1.89% | -7.46% | |
62 Neutral | €15.69B | 18.80 | 26.38% | 0.62% | 18.24% | 60.48% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | €5.40B | 53.43 | 22.72% | 0.80% | 19.79% | 88.22% | |
54 Neutral | €6.28B | -4.09 | 1.72% | 1.23% | -7.20% | ― | |
54 Neutral | €8.91B | 95.25 | 9.97% | 0.68% | 9.60% | -17.59% |
* General Sector Average
DE:RHM
Rheinmetall
1,355.80
-212.26
-13.54%
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278.00
207.55
294.63%
DE:TKA
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2.46
32.24%
DE:HAG
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9.02%
DE:R3NK
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53.97
-1.15
-2.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.