tiprankstipranks
Trending News
More News >
Rheinmetall AG (DE:RHM)
XETRA:RHM
Advertisement

Rheinmetall (RHM) AI Stock Analysis

Compare
2,973 Followers

Top Page

DE:RHM

Rheinmetall

(XETRA:RHM)

Rating:57Neutral
Price Target:
€1,626.00
▼(-0.58% Downside)
Rheinmetall's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high valuation. The company's robust revenue growth and profitability are strengths, but the high P/E ratio and weak technical momentum present risks. The lack of earnings call data and corporate events means these factors do not impact the score.
Positive Factors
Defense Spending
The proposed changes could pave the way for sustainably higher defense spending in Germany.
Financial Performance
Free cash flow at €266 million, 26% ahead of expectations.
Negative Factors
Earnings
Sales are 4% below expectations.
Order Intake
Limited order intake due to the government transition in Germany.

Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)

Rheinmetall Business Overview & Revenue Model

Company DescriptionRheinmetall 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 MoneyRheinmetall generates revenue through multiple streams primarily from its Defense and Automotive sectors. In the Defense segment, the company earns income by providing military equipment, such as armored vehicles, weapons systems, and munitions to government and military clients, often secured through long-term contracts and partnerships with defense ministries around the world. The Automotive sector contributes to revenue through the sale of automotive components, including engine and transmission parts, which are supplied to major automotive manufacturers. Additionally, Rheinmetall benefits from government defense budgets and spending on military modernization, as well as collaborations with other defense contractors and technology firms, enhancing its product offerings and market reach.

Rheinmetall Financial Statement Overview

Summary
Rheinmetall demonstrates strong financial performance with solid revenue growth, robust profit margins, and efficient cash flow management. The company maintains a conservative debt-to-equity ratio and a strong equity base, indicating financial stability.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.67B9.75B7.18B6.41B5.66B5.88B
Gross Profit5.47B5.06B3.94B3.38B3.03B2.94B
EBITDA1.89B1.77B1.23B960.00M867.00M644.00M
Net Income822.00M717.00M535.00M474.00M291.00M1.00M
Balance Sheet
Total Assets14.59B14.34B11.94B8.09B7.73B7.27B
Cash, Cash Equivalents and Short-Term Investments352.00M1.25B915.00M696.00M1.22B1.04B
Total Debt2.01B2.42B1.91B972.00M921.00M1.02B
Total Liabilities9.68B9.88B8.30B5.01B5.11B5.21B
Stockholders Equity4.46B4.05B3.32B2.81B2.42B1.89B
Cash Flow
Free Cash Flow385.00M988.00M345.00M-175.00M419.00M216.00M
Operating Cash Flow1.24B1.72B743.00M174.00M690.00M453.00M
Investing Cash Flow-1.25B-1.17B-1.18B-534.00M-462.00M-188.00M
Financing Cash Flow-168.00M-234.00M746.00M-131.00M-202.00M-148.00M

Rheinmetall Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1635.50
Price Trends
50DMA
1726.23
Negative
100DMA
1674.66
Negative
200DMA
1253.11
Positive
Market Momentum
MACD
-34.61
Negative
RSI
46.64
Neutral
STOCH
79.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RHM, the sentiment is Neutral. The current price of 1635.5 is below the 20-day moving average (MA) of 1650.60, below the 50-day MA of 1726.23, and above the 200-day MA of 1253.11, indicating a neutral trend. The MACD of -34.61 indicates Negative momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:RHM.

Rheinmetall Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
57
Neutral
€74.94B87.8121.91%0.50%31.24%52.48%
€20.54B24.0824.74%
€1.25B222.221.42%0.87%
79
Outperform
€16.21B7.5012.80%5.29%-2.98%-14.55%
$84.34B85.059.35%
64
Neutral
€10.14B110.7411.52%0.57%18.53%73.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:RHM
Rheinmetall
1,635.50
1,102.60
206.90%
GB:0FC9
MTU Aero Engines
380.88
116.27
43.94%
GB:0FH7
OHB SE
67.20
23.24
52.87%
DE:8TRA
TRATON SE
32.12
4.57
16.59%
SMEGF
Siemens Energy
109.97
82.04
293.73%
DE:HAG
HENSOLDT AG
87.75
54.94
167.45%
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.Date of analysis: Aug 20, 2025