Rheinmetall (RHM) AI Stock Analysis

• Market Cap: €79.33B
• Dividend Yield: 0.53%
• Average Volume (3M): 243.19K
• Price to Earnings (P/E): 92.0
• Beta (1Y): 0.70
• 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: €2,185.08
• Price Target Upside: 42.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €1,580.00 ▲(3.30% Upside)

Rheinmetall's overall stock score is primarily influenced by its strong financial performance, despite concerns over cash flow. Technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability.

Profitability Margins

Strong profitability margins suggest efficient operations and cost management, enhancing the company's ability to reinvest in growth opportunities.

Balance Sheet Health

A healthy balance sheet with manageable leverage ensures financial stability and flexibility for future investments and growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to fund new projects and pay down debt, impacting long-term growth prospects.

Debt Increase

Rising debt levels can strain financial resources and limit the company's ability to invest in new opportunities, affecting future growth.

Cash Flow Performance

Mixed cash flow performance may hinder the company's ability to sustain operations and invest in growth, posing a risk to long-term financial health.

Rheinmetall Business Overview & Revenue Model

Company Description

Rheinmetall AG (RHM) is a leading global defense and automotive supplier based in Germany. The company operates in two main sectors: Defense and Automotive. In the Defense sector, Rheinmetall manufactures military vehicles, weapons, and ammunition systems, as well as providing integrated security solutions. The Automotive division focuses on developing and producing components for internal combustion engines, electric mobility, and innovative vehicle systems. With a strong emphasis on technology and innovation, Rheinmetall serves both governmental and commercial clients across the globe.

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	10.67B	9.75B	7.18B	6.41B	5.66B	5.88B
Gross Profit	5.47B	5.06B	3.94B	3.38B	3.03B	2.94B
EBITDA	1.89B	1.77B	1.23B	960.00M	850.00M	644.00M
Net Income	822.00M	717.00M	535.00M	474.00M	291.00M	1.00M
Balance Sheet
Total Assets	14.59B	14.34B	11.94B	8.09B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	352.00M	1.25B	915.00M	696.00M	1.22B	1.04B
Total Debt	2.01B	2.42B	1.91B	972.00M	921.00M	1.02B
Total Liabilities	9.68B	9.88B	8.30B	5.01B	5.11B	5.21B
Stockholders Equity	4.46B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow
Free Cash Flow	385.00M	988.00M	345.00M	-175.00M	419.00M	216.00M
Operating Cash Flow	1.24B	1.72B	743.00M	174.00M	690.00M	453.00M
Investing Cash Flow	-1.25B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
Financing Cash Flow	-168.00M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1529.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1529.5 is below the 20-day moving average (MA) of 1593.00, below the 50-day MA of 1724.51, and below the 200-day MA of 1647.56, indicating a bearish trend. The MACD of -65.81 indicates Negative momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 79.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8TRA	78 Outperform	€13.60B	7.64	10.20%	5.76%	-7.11%	-30.83%
MTX	76 Outperform	€19.86B	23.31	24.74%	0.63%	45.24%	―
HAG	64 Neutral	€10.62B	116.70	15.96%	0.73%	14.89%	619.09%
OHB	64 Neutral	€2.03B	351.58	1.49%	0.53%	10.80%	-91.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENR	62 Neutral	$99.97B	70.03	14.05%	―	13.38%	21.99%
RHM	58 Neutral	€79.33B	92.01	21.48%	0.53%	24.61%	45.20%