Rheinmetall AG (DE:RHM)
XETRA:RHM
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Rheinmetall
(XETRA:RHM)
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Rating:59Neutral
Price Target:
€1,273.00
▼(-14.86% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by strong profitability and solid balance-sheet leverage, but it is held back by the pronounced downtrend/weak momentum in technical indicators and a very high P/E with low dividend yield. Softer TTM revenue and weaker free-cash-flow momentum further temper the overall outlook.
Positive Factors
Strong margins & ROE
Sustained high gross and operating margins plus ~15% ROE indicate durable profitability and pricing power in core defense and industrial lines. These margins provide a cushion against program timing volatility, supporting reinvestment, R&D and long-term returns even through revenue lulls.
Negative Factors
Declining free cash flow & weak conversion
A roughly 40% drop in FCF and cash conversion of ~49% of net income materially reduces internal funding capacity. Persistently weaker FCF increases reliance on external financing for capex, inventories or contract working capital, raising financial risk and limiting strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins & ROE
Sustained high gross and operating margins plus ~15% ROE indicate durable profitability and pricing power in core defense and industrial lines. These margins provide a cushion against program timing volatility, supporting reinvestment, R&D and long-term returns even through revenue lulls.
Read all positive factors
Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€57.12B
Dividend Yield0.53%
Average Volume (3M)243.19K
Price to Earnings (P/E)150.1
Beta (1Y)1.10
Revenue Growth-8.66%
EPS Growth-8.96%
CountryDE
Employees29,515
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)15.80
Shares Outstanding46,663,520
10 Day Avg. Volume250,890
30 Day Avg. Volume243,188
Financial Highlights & Ratios
PEG Ratio-14.82
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
€1,887.08Price Target Upside26.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)37.94
Revenue Forecast (FY)€14.13B
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 S...
How the Company Makes Money
Rheinmetall makes money mainly by designing, manufacturing, and supporting defense equipment and by supplying technology products to industrial and automotive customers. Its core revenue streams include: (1) Defense platforms and systems sales: re...
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
1397.95
Negative
1552.33
Negative
1623.93
Negative
Market Momentum
-65.01
Negative
42.79
Neutral
74.69
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 1257.58, above the 50-day MA of 1397.95, and below the 200-day MA of 1623.93, indicating a bearish trend. The MACD of -65.01 indicates Negative momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 74.69 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 | €15.95B | 9.32 | 26.38% | 0.62% | 18.24% | 60.48% | |
62 Neutral | €4.90B | 82.50 | 25.11% | 0.80% | 17.16% | 102.59% | |
61 Neutral | €10.28B | -114.89 | 10.96% | 0.68% | 10.84% | 7.53% | |
59 Neutral | €57.12B | 150.11 | 14.85% | 0.53% | -8.66% | -8.96% | |
59 Neutral | €11.30B | 129.70 | 12.09% | 0.51% | 22.46% | 1421500.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | €6.79B | 1,153.24 | 0.10% | 1.23% | -6.47% | ― |
* General Sector Average
DE:RHM
Rheinmetall
1,227.20
-596.57
-32.71%
DE:MTX
MTU Aero Engines
296.00
-48.35
-14.04%
DE:OHB
OHB SE
590.00
518.56
725.89%
DE:TKA
thyssenkrupp
10.91
3.95
56.70%
DE:HAG
HENSOLDT AG
89.04
7.61
9.35%
DE:R3NK
RENK Group AG
49.03
-22.41
-31.37%
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.