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Rheinmetall
(XETRA:RHM)
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Rating:61Neutral
Price Target:
€1,154.00
▼(-22.82% Downside)
Action:Reiterated
Date:06/25/26
The score is primarily supported by strong profitability and solid returns with reasonable leverage, but it is held back by deteriorating free-cash-flow momentum and a clear technical downtrend. A high P/E and modest dividend yield further pressure the risk/reward profile.
Positive Factors
High operating margins
Sustained high gross and EBIT margins provide durable underlying profitability that funds program execution, R&D and capacity. Strong margins improve the firm's ability to absorb timing volatility in multi‑year defense contracts and support ongoing operating cash generation.
Negative Factors
Sharp free-cash-flow decline
A ~40% drop in FCF and weaker cash conversion (~49% of net income) indicate higher working-capital consumption or elevated investment outlays. Persistently weaker FCF reduces internal funding for programs, raises reliance on external financing and increases cash-flow volatility risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating margins
Sustained high gross and EBIT margins provide durable underlying profitability that funds program execution, R&D and capacity. Strong margins improve the firm's ability to absorb timing volatility in multi‑year defense contracts and support ongoing operating cash generation.
Read all positive factors
Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€51.01B
Dividend Yield0.53%
Average Volume (3M)243.19K
Price to Earnings (P/E)70.3
Beta (1Y)1.21
Revenue Growth-8.66%
EPS Growth-8.96%
CountryDE
Employees29,515
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)15.87
Shares Outstanding46,777,220
10 Day Avg. Volume250,890
30 Day Avg. Volume243,188
Financial Highlights & Ratios
PEG Ratio-14.83
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
€1,737.64Price Target Upside16.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)37.88
Revenue Forecast (FY)€14.08B
Rheinmetall Business Overview & Revenue Model
Company Description
Globally, Rheinmetall AG is a technology group that delivers advanced solutions to both the mobility and security sectors. Its operations are structured into five distinct business units: Vehicle Systems, Weapon and Ammunition, Electronic Solution...
How the Company Makes Money
Rheinmetall primarily makes money by selling defense products and delivering long-term defense programs to government customers, complemented by aftermarket support and services. Key revenue streams include: (1) Defense platform sales and programs...
Rheinmetall Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.57B | 9.94B | 9.75B | 7.18B | 6.41B | 5.66B |
| Gross Profit | 4.39B | 5.20B | 5.06B | 3.94B | 3.38B | 3.03B |
| EBITDA | 2.17B | 2.19B | 1.77B | 1.23B | 960.00M | 850.00M |
| Net Income | 723.00M | 696.00M | 717.00M | 535.00M | 474.00M | 291.00M |
Balance Sheet | ||||||
| Total Assets | 19.61B | 17.08B | 14.34B | 11.94B | 8.09B | 7.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.69B | 1.25B | 915.00M | 696.00M | 1.22B |
| Total Debt | 2.16B | 1.28B | 2.42B | 1.91B | 972.00M | 921.00M |
| Total Liabilities | 13.59B | 11.46B | 9.88B | 8.30B | 5.01B | 5.11B |
| Stockholders Equity | 5.33B | 5.01B | 4.05B | 3.32B | 2.81B | 2.42B |
Cash Flow | ||||||
| Free Cash Flow | 842.00M | 1.41B | 988.00M | 345.00M | -175.00M | 419.00M |
| Operating Cash Flow | 1.71B | 2.29B | 1.72B | 743.00M | 174.00M | 690.00M |
| Investing Cash Flow | -1.84B | -843.00M | -1.17B | -1.18B | -534.00M | -462.00M |
| Financing Cash Flow | 469.00M | -861.00M | -234.00M | 746.00M | -131.00M | -202.00M |
Rheinmetall Technical Analysis
Negative
1495.20
Price Trends
1194.72
Negative
1370.55
Negative
1542.37
Negative
Market Momentum
-50.86
Negative
46.27
Neutral
56.88
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 above the 20-day moving average (MA) of 1114.79, above the 50-day MA of 1194.72, and below the 200-day MA of 1542.37, indicating a bearish trend. The MACD of -50.86 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 56.88 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €20.40B | 18.40 | 26.38% | 0.62% | 18.24% | 60.48% | |
64 Neutral | €4.68B | 41.46 | 25.11% | 0.80% | 17.16% | 102.59% | |
61 Neutral | €51.01B | 70.26 | 14.85% | 0.53% | -8.66% | -8.96% | |
61 Neutral | €8.73B | 88.46 | 10.96% | 0.68% | 10.84% | 7.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | €7.49B | 980.17 | 0.10% | 1.23% | -6.47% | ― | |
48 Neutral | €6.20B | 94.95 | 12.99% | 0.51% | 22.46% | 1398400.00% |
* General Sector Average
DE:RHM
Rheinmetall
1,093.40
-691.76
-38.75%
DE:MTX
MTU Aero Engines
378.60
6.87
1.85%
DE:OHB
OHB SE
297.00
224.90
311.91%
DE:TKA
thyssenkrupp
12.04
4.72
64.57%
DE:HAG
HENSOLDT AG
75.58
-24.99
-24.85%
DE:R3NK
RENK Group AG
46.80
-20.49
-30.45%
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.