Rheinmetall (RHM) AI Stock Analysis

• Market Cap: €76.69B
• Dividend Yield: 0.34%
• Average Volume (3M): 361.38K
• Price to Earnings (P/E): 97.8
• Beta (1Y): 0.80
• Revenue Growth: 41.65%
• EPS Growth: 42.12%
• Country: DE
• Employees: 28,539
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 1.91
• Shares Outstanding: 45,635,650
• 10 Day Avg. Volume: 317,371
• 30 Day Avg. Volume: 361,383
• PEG Ratio: 2.98
• Price to Book (P/B): 15.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.14
• 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: €1,721.38
• Price Target Upside: 7.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Rheinmetall's strong financial performance is the primary driver of its stock score, with impressive revenue growth and profitability. However, the high P/E ratio indicates potential overvaluation, and the low dividend yield may deter income investors. Technical analysis shows strong upward momentum, but the lack of comprehensive indicators requires cautious optimism.

Positive Factors

Financial Performance

Free cash flow at €266 million, 26% ahead of expectations.

Growth Potential

Significant upside is expected on stronger defense growth, standing 25% above on adj. EBIT.

Market Outlook

Analyst reiterates a Buy recommendation and raises the price target for Rheinmetall AG to €650, indicating confidence in the company's future performance and growth prospects.

Negative Factors

Geopolitical Risks

Investors have had concerns about a potential ceasefire between Russia and Ukraine, which could affect Rheinmetall AG's ammunition sales, although this risk is considered priced-in for now.

Revenue Concerns

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.

Rheinmetall Business Overview & Revenue Model

Company Description

Rheinmetall 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 Money

Rheinmetall 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.75B	7.18B	6.41B	5.66B	5.88B
	Gross Profit
5.06B	3.94B	3.38B	3.03B	2.94B
	EBIT
2.35B	1.43B	754.00M	624.00M	293.00M
	EBITDA
1.75B	1.23B	960.00M	838.00M	644.00M
	Net Income Common Stockholders
717.00M	535.00M	474.00M	432.00M	1.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.25B	915.00M	696.00M	1.22B	1.04B
	Total Assets
14.34B	11.94B	8.09B	7.73B	7.27B
	Total Debt
2.42B	1.91B	972.00M	921.00M	1.02B
	Net Debt
1.24B	1.06B	427.00M	-118.00M	-4.00M
	Total Liabilities
9.88B	8.30B	5.01B	5.11B	5.21B
	Stockholders Equity
4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow		Free Cash Flow
988.00M	345.00M	-175.00M	419.00M	216.00M
	Operating Cash Flow
1.72B	743.00M	174.00M	690.00M	453.00M
	Investing Cash Flow
-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
	Financing Cash Flow
-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1594.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1594 is above the 20-day moving average (MA) of 1498.17, above the 50-day MA of 1358.02, and above the 200-day MA of 786.54, indicating a bullish trend. The MACD of 94.05 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, 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
SIE	75 Outperform	€167.64B	17.53	14.18%	2.43%	-1.13%	8.98%
AIR	74 Outperform	$125.41B	28.24	21.75%	1.19%	5.16%	12.89%
MTX	70 Outperform	€17.62B	27.86	20.33%	0.62%	38.19%	―
RHM	68 Neutral	€76.69B	97.81	21.45%	0.34%	41.65%	42.12%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
BAS	59 Neutral	€38.60B	52.23	2.02%	7.86%	-2.04%	2258.97%