Rheinmetall (RHM) AI Stock Analysis

• Market Cap: €81.06B
• Dividend Yield: 0.47%
• Average Volume (3M): 226.23K
• Price to Earnings (P/E): 102.1
• Beta (1Y): 0.75
• Revenue Growth: 41.65%
• EPS Growth: 42.12%
• Country: DE
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 3.02
• Shares Outstanding: 45,944,622
• 10 Day Avg. Volume: 173,156
• 30 Day Avg. Volume: 226,231
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2,085.58
• Price Target Upside: 18.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: €1,962.00 ▲(11.16% 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

Defense Business Growth

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

Facility Impact

A €200m headwind from the Murcia facility is affecting the current quarter.

Order Intake

Limited order intake due to the government transition in Germany.

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. In the Defense sector, the company earns money by supplying military equipment, such as armored vehicles, weapon systems, and ammunition, to governments and defense organizations worldwide. This sector benefits from long-term contracts with national governments and international defense alliances. In the Automotive sector, Rheinmetall makes money by manufacturing and selling components to major automotive manufacturers. This includes products related to engine efficiency, emission reduction, and fuel consumption optimization. Strategic partnerships and joint ventures in both sectors also contribute to the company's earnings by enhancing its technological capabilities and market reach.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.47B	9.75B	7.18B	6.41B	5.66B	5.88B
Gross Profit	5.32B	5.06B	3.94B	3.38B	3.03B	2.94B
EBITDA	1.85B	1.77B	1.23B	960.00M	867.00M	644.00M
Net Income	753.00M	717.00M	535.00M	474.00M	291.00M	1.00M
Balance Sheet
Total Assets	14.66B	14.34B	11.94B	8.09B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.25B	915.00M	696.00M	1.22B	1.04B
Total Debt	1.70B	2.42B	1.91B	972.00M	921.00M	1.02B
Total Liabilities	9.73B	9.88B	8.30B	5.01B	5.11B	5.21B
Stockholders Equity	4.47B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow
Free Cash Flow	1.47B	988.00M	345.00M	-175.00M	419.00M	216.00M
Operating Cash Flow	2.25B	1.72B	743.00M	174.00M	690.00M	453.00M
Investing Cash Flow	-1.22B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
Financing Cash Flow	-472.00M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1765.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1765 is below the 20-day moving average (MA) of 1787.78, below the 50-day MA of 1782.91, and above the 200-day MA of 1162.45, indicating a neutral trend. The MACD of -12.30 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥258.06B	14.45	8.48%	2.82%	6.32%	12.21%
RHM	69 Neutral	€81.06B	102.14	21.45%	0.47%	41.65%	42.12%
0FC9	―	€20.21B	23.98	24.74%	―	―	―
0FH7	―	€1.27B	324,000.00	<0.01%	0.89%	―	―
8TRA	73 Outperform	€14.84B	6.81	12.80%	5.78%	-2.98%	-14.55%
SMEGF	―	$89.95B	90.49	9.35%	―	―	―
HAG	64 Neutral	€10.84B	119.11	11.52%	0.55%	18.53%	73.20%