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Rheinmetall AG (DE:RHM)
XETRA:RHM

Rheinmetall (RHM) AI Stock Analysis

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DE

Rheinmetall

(XETRA:RHM)

Rating:69Neutral
Price Target:
€1,962.00
▲(5.23%Upside)
Rheinmetall's strong financial performance is the primary driver of its stock score, supported by solid revenue growth, profitability, and cash flow. The technical indicators are positive but suggest caution due to neutral momentum signals. The high P/E ratio indicates potential overvaluation, which tempers the overall score.
Positive Factors
Earnings
Strong growth across all defense businesses with sales up 49-93%.
Financial Performance
Free cash flow at €266 million, 26% ahead of expectations.
Negative Factors
Guidance
FY25 revenue outlook is slightly below consensus despite the revenue slippage from 4Q24 into FY25 while guided margin of approximately 15.5% falls short of consensus of 16.3% on higher ramp-up costs for the new ammunition production in Unterluess and the F35 fuselage production in Weeze.
Revenue
RHM reported FY24 results with 4Q24 group revenue approximately 6% below VisibleAlpha consensus as deliveries worth around €200m have slipped from 4Q24 into FY25.

Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)

Rheinmetall Business Overview & Revenue Model

Company DescriptionRheinmetall AG is a leading German multinational company specializing in the automotive and defense sectors. The company operates through two main divisions: Rheinmetall Automotive and Rheinmetall Defence. Rheinmetall Automotive focuses on the development and production of components and systems for the automotive industry, including engine parts, electric components, and emission control systems. Rheinmetall Defence provides a wide range of defense solutions, including military vehicles, weapons systems, ammunition, and electronic warfare technologies.
How the Company Makes MoneyRheinmetall AG generates revenue through its two primary divisions. The Automotive division earns money by supplying automotive parts and systems to major car manufacturers and suppliers worldwide. Key revenue streams include sales of engine components, mechatronic systems, and aftermarket products. Furthermore, the company invests in research and development to innovate in areas like electric mobility and emission reduction, which attract more business from environmentally-conscious automotive clients. The Defence division is a significant revenue driver, with earnings coming from the sale of military hardware, such as armored vehicles, ammunition, and advanced electronic systems to governments and defense contractors globally. Rheinmetall's defense business benefits from long-term contracts and partnerships with national defense agencies, ensuring steady income. Additionally, the company engages in joint ventures and strategic alliances to expand its technological capabilities and market reach in both the automotive and defense sectors.

Rheinmetall Financial Statement Overview

Summary
Rheinmetall demonstrates strong revenue growth and profitability with solid margins and robust cash generation. The company maintains a balanced leverage approach, supported by a strong equity base. Monitoring debt levels is advisable but overall financial health is strong.
Income Statement
85
Very Positive
Rheinmetall demonstrates strong revenue growth with an increase from €9.75 billion to €10.47 billion in TTM, indicating a positive growth trend. The Gross Profit Margin is solid at approximately 50.8% for TTM, reflecting efficient production. The Net Profit Margin is robust at about 7.2%, showcasing profitability. EBIT and EBITDA margins are healthy at 14% and 17.7% respectively, indicating operational efficiency.
Balance Sheet
78
Positive
The company's Debt-to-Equity ratio stands at 0.38, indicating a conservative approach to leverage. Return on Equity (ROE) is a strong 16.8%, reflecting effective use of equity. The Equity Ratio is solid at 30.5%, suggesting a stable financial structure with sufficient equity backing.
Cash Flow
82
Very Positive
Rheinmetall shows a significant increase in Free Cash Flow from €988 million to €1.47 billion, highlighting robust cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.98, indicating strong cash flow relative to profits. The Free Cash Flow to Net Income Ratio is 1.95, showcasing efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.47B9.75B7.18B6.41B5.66B5.88B
Gross Profit5.32B5.06B3.94B3.38B3.03B2.94B
EBITDA1.85B1.77B1.23B960.00M867.00M644.00M
Net Income753.00M717.00M535.00M474.00M291.00M1.00M
Balance Sheet
Total Assets14.66B14.34B11.94B8.09B7.73B7.27B
Cash, Cash Equivalents and Short-Term Investments1.08B1.25B915.00M696.00M1.22B1.04B
Total Debt1.70B2.42B1.91B972.00M921.00M1.02B
Total Liabilities9.73B9.88B8.30B5.01B5.11B5.21B
Stockholders Equity4.47B4.05B3.32B2.81B2.42B1.89B
Cash Flow
Free Cash Flow1.47B988.00M345.00M-175.00M419.00M216.00M
Operating Cash Flow2.25B1.72B743.00M174.00M690.00M453.00M
Investing Cash Flow-1.22B-1.17B-1.18B-534.00M-462.00M-188.00M
Financing Cash Flow-472.00M-234.00M746.00M-131.00M-202.00M-148.00M

Rheinmetall Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1864.50
Price Trends
50DMA
1682.55
Positive
100DMA
1401.14
Positive
200DMA
989.03
Positive
Market Momentum
MACD
16.90
Positive
RSI
60.70
Neutral
STOCH
56.67
Neutral
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 1864.5 is above the 20-day moving average (MA) of 1774.40, above the 50-day MA of 1682.55, and above the 200-day MA of 989.03, indicating a bullish trend. The MACD of 16.90 indicates Positive momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RHM.

Rheinmetall Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEHAG
79
Outperform
€10.91B111.0310.95%0.53%25.46%41.26%
74
Outperform
€13.77B5.4714.10%5.36%-2.53%-4.91%
DEENR
71
Outperform
$73.01B340.211.79%17.17%
DEMTX
70
Outperform
€19.89B31.4220.33%0.52%38.19%
DERHM
69
Neutral
€78.73B100.3521.45%0.47%41.65%42.12%
65
Neutral
$10.36B15.105.28%2.01%2.70%-26.16%
DEOHB
53
Neutral
€1.28B343,000.00<0.01%0.87%-2.53%-99.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:RHM
Rheinmetall
1,864.50
1,391.10
293.85%
DE:MTX
MTU Aero Engines
370.40
138.77
59.91%
DE:OHB
OHB SE
70.60
26.74
60.99%
DE:8TRA
TRATON SE
26.36
-2.00
-7.05%
DE:ENR
Siemens Energy
92.90
68.26
277.03%
DE:HAG
HENSOLDT AG
99.40
65.82
196.01%
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.Date of analysis: Jun 14, 2025