RHI Magnesita NV (RHIM) AI Stock Analysis

• Market Cap: £1.31B
• Dividend Yield: 5.56%
• Average Volume (3M): 24.71K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.63
• Revenue Growth: -5.74%
• EPS Growth: -75.29%
• Country: UK
• Employees: 29,207
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.52
• Shares Outstanding: 47,307,526
• 10 Day Avg. Volume: 21,327
• 30 Day Avg. Volume: 24,712
• PEG Ratio: -0.93
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 6.45
• 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: £3,366.25
• Price Target Upside: 21.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.2
• Revenue Forecast (FY): £3.08B

• Rating: 67 Neutral
• Price Target: 3,053.00p ▲(10.02% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

RHI Magnesita NV's overall stock score reflects a mix of strong technical indicators and positive corporate events, offset by financial performance challenges and a high valuation. The company's ability to improve margins and governance are positive signs, but financial stability and valuation concerns weigh on the score.

Positive Factors

Market Leadership

Being a leading global supplier in refractories gives durable competitive advantages: scale, long-term OEM and steel industry relationships, broad geographic footprint and specialized product know-how. These traits support pricing power, repeat contracts and resilience across cycles over months to years.

Diversified Revenue Model

A mix of product sales, recurring service contracts and technical consultancy reduces reliance on spot product demand. Long-term service agreements and partnerships with industrial customers create recurring cash streams and higher customer switching costs, stabilizing revenues over multi-quarter horizons.

Margin Stability / Improvements

Stable gross margins around 22.7% plus reported margin improvement initiatives indicate operational leverage and pricing discipline. If sustained, margin resilience supports cash flow generation and funds reinvestment, making profitability less sensitive to short-term volume swings over the coming quarters.

Negative Factors

High Leverage

Significant leverage elevates refinancing and interest-rate risk and reduces financial flexibility. With debt-to-equity near 1.9 and modest equity cushion, large capex, cyclical downturns or weaker cash conversion could pressure covenants or require higher debt service, constraining strategic investment over months.

Declining Profitability & Revenue

Negative revenue trends and a collapse in net margin to roughly 1.4% weaken internal funding for growth and debt service. Persistent revenue contraction signals demand or competitive pressures that, absent sustained recovery, can impair ability to restore margins and reinvest, affecting multi-quarter performance.

Weak Cash Generation

Declining free cash flow and low OCF-to-net-income conversion indicate strained cash conversion. This reduces capacity to pay down debt, fund capex or return capital, increasing reliance on external financing. Over a 2-6 month horizon, weak cash generation limits strategic options and resilience.

RHI Magnesita NV Business Overview & Revenue Model

Company Description

RHI Magnesita N.V., together with its subsidiaries, develops, produces, sells, installs, and maintains refractory products and systems used in industrial high-temperature processes worldwide. It offers magnesia spinel, dolomite, dolomite-magnesia, magnesia-chrome, alumina, alumina silicate, and mortars for the cement industry; shaped products based on silicon carbide, magnesia, zirconium, fireclay, and alumina; unshaped refractories; and high-temperature insulation, and ceramic and metallic anchoring systems. The company also provides induction and electric arc furnaces, AOD converters, dome and delta, ladles, isostatically pressed products, and slide gates. In addition, the company offers zircon-magnesia, mullite /andalusite, chrome-alumina, zircon, silica, and calcium aluminate materials. Further, the company provides high-purity magnesia and magnesia-chromite bricks, magnesia-carbon bricks, concrete with anti-wetting system, ceramic and metal anchors, sense and insulating concretes, ramming mixes, and low cement castables, as well as precast shapes, alumina-silica, insulating monolithic parts; and monolithic products. Additionally, it provides raw, caustic, and sintered magnesia, dolomite and sintered dolomite, slag conditioners, magnesium oxide, spinels, agalmatolite, chromite, grogs, and commodities. The company also offers electromechanical maintenance, repairs, assemblies, refractory maintenance and application; solutions development and monitoring; engineering, projects, lining, and metal working factory services. In addition, it provides iron, steel, continuous casting, and non-ferrous solutions. RHI Magnesita N.V. offers solutions for various ladles, tundish, hydraulical or electrical power, steel plant aggregates, and robotic handling sectors. The company was founded in 1834 and is headquartered in Vienna, Austria.

How the Company Makes Money

RHI Magnesita generates revenue primarily through the sale of refractory products and solutions. The company has a diversified revenue model that includes direct sales of refractory materials, service contracts for installation and maintenance, and technical consultancy for industrial applications. Key revenue streams come from major industries such as steel production, which accounts for a significant portion of sales, as well as the cement and glass sectors. Additionally, RHI Magnesita benefits from strategic partnerships with major industrial players, allowing for long-term contracts and repeat business. The company's focus on innovative and sustainable refractory solutions also positions it to capture emerging markets and demand shifts, further contributing to its earnings.

RHI Magnesita NV Financial Statement Overview

Summary

RHI Magnesita NV faces challenges across its financial statements. The income statement shows declining profitability and revenue, while the balance sheet highlights high leverage. Cash flow management is under pressure, with declining free cash flow growth. The company must address these issues to enhance financial stability and performance. However, past growth trends suggest potential for improvement if strategic adjustments are made.

Income Statement

RHI Magnesita NV shows a mixed performance in its income statement. The TTM revenue has decreased by 0.74%, indicating a decline in sales. Gross profit margin is stable at 22.7%, but net profit margin has dropped to 1.38%, reflecting reduced profitability. EBIT and EBITDA margins have also decreased, suggesting operational challenges. Despite these issues, the company has previously demonstrated strong revenue growth, which could indicate potential for recovery.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.86, indicating significant leverage, which could pose financial risks. Return on equity has decreased to 4.32%, showing reduced efficiency in generating returns for shareholders. The equity ratio stands at 22.4%, suggesting a moderate level of financial stability. While the company has managed its assets effectively in the past, the current leverage levels require careful monitoring.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 16.2% in the TTM period, highlighting cash generation challenges. The operating cash flow to net income ratio is 0.30, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.63, indicating some ability to generate cash relative to net income. The company needs to focus on improving cash flow management to support its operations and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	3.49B	3.57B	3.32B	2.55B	2.26B
Gross Profit	780.00M	848.00M	857.40M	763.40M	583.50M	550.10M
EBITDA	416.40M	472.00M	507.30M	477.80M	463.20M	342.20M
Net Income	47.40M	142.00M	164.60M	155.70M	243.10M	24.80M
Balance Sheet
Total Assets	4.42B	4.58B	4.85B	4.07B	3.91B	3.05B
Cash, Cash Equivalents and Short-Term Investments	328.00M	577.00M	708.00M	495.50M	559.10M	587.20M
Total Debt	1.84B	1.82B	2.00B	1.67B	1.59B	1.19B
Total Liabilities	3.27B	3.20B	3.49B	3.03B	3.09B	2.39B
Stockholders Equity	991.00M	1.20B	1.20B	1.00B	785.90M	646.10M
Cash Flow
Free Cash Flow	207.70M	288.00M	320.20M	77.10M	-343.90M	162.10M
Operating Cash Flow	329.90M	433.00M	499.70M	233.80M	-91.80M	319.00M
Investing Cash Flow	-451.50M	-154.00M	-482.00M	-199.70M	-128.90M	-137.90M
Financing Cash Flow	-152.70M	-409.00M	173.00M	-83.90M	197.70M	-17.70M

RHI Magnesita NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2775.00
• 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 GB:RHIM, the sentiment is Negative. The current price of 2775 is below the 20-day moving average (MA) of 3081.75, below the 50-day MA of 2874.00, and above the 200-day MA of 2532.01, indicating a neutral trend. The MACD of 59.40 indicates Positive momentum. The RSI at 37.49 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RHIM.

RHI Magnesita NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBY	76 Outperform	£3.53B	6.66	16.34%	1.80%	9.97%	-15.46%
IMI	75 Outperform	£6.76B	22.91	23.79%	1.29%	-0.32%	-3.96%
SPX	72 Outperform	£5.52B	17.56	14.19%	2.46%	0.10%	-15.33%
MGAM	67 Neutral	£556.57M	10.38	8.04%	4.87%	-7.30%	-59.71%
RHIM	67 Neutral	£1.31B	17.84	4.21%	5.56%	-5.74%	-75.29%
ROR	66 Neutral	£3.05B	14.34	16.97%	2.04%	1.93%	-15.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

RHI Magnesita NV Corporate Events

RHI Magnesita Confirms Total Voting Rights as of Year-End 2025

RHI Magnesita has reported that, as of 31 December 2025, its issued share capital comprised 47,304,527 ordinary shares, with an additional 2,173,178 ordinary shares held in treasury. Excluding treasury shares, the company confirmed that the total number of shares carrying voting rights is 47,304,527, a figure that shareholders and other market participants should use as the reference denominator when assessing and notifying changes in their holdings under applicable disclosure and transparency rules.

The most recent analyst rating on (GB:RHIM) stock is a Hold with a £2760.00 price target. To see the full list of analyst forecasts on RHI Magnesita NV stock, see the GB:RHIM Stock Forecast page.

RHI Magnesita Announces Board of Directors Change

RHI Magnesita announced a change in its Board of Directors as Karin Garcia concludes her four-year term as an Employee Representative Director. This change is effective from December 9, 2025, and reflects the company’s adherence to its governance structure. The company expressed gratitude for her contributions during her tenure.

The most recent analyst rating on (GB:RHIM) stock is a Hold with a £2760.00 price target. To see the full list of analyst forecasts on RHI Magnesita NV stock, see the GB:RHIM Stock Forecast page.

RHI Magnesita Reports Strong Performance Amid Market Challenges

RHI Magnesita reported a trading update for the period ending October 2025, showing an improvement in performance despite challenging market conditions. The company achieved an adjusted EBITA of €136 million over four months, with a 12.7% margin, surpassing the first half of the year. While steel volumes remained weak, the company saw growth in India and the Middle East, Africa, and Türkiye. Cost efficiency programs and plant closures in Germany contributed to margin improvements. The integration of former Resco plants is progressing well, enhancing the North American footprint. The company remains on track to meet its full-year adjusted EBITA target, with expectations of continued performance improvement into 2026.

The most recent analyst rating on (GB:RHIM) stock is a Hold with a £2189.00 price target. To see the full list of analyst forecasts on RHI Magnesita NV stock, see the GB:RHIM Stock Forecast page.

RHI Magnesita Appoints New Employee Representative Director

RHI Magnesita has announced the appointment of Yasmin-Sarah Solmazer as an Employee Representative Director on its Board, effective from January 1, 2026, for a four-year term. This appointment follows the stepping down of Michael Schwarz, who served in the role for eight years. The company looks forward to Solmazer’s contributions as a workforce representative, highlighting its commitment to employee representation in governance.

The most recent analyst rating on (GB:RHIM) stock is a Hold with a £2189.00 price target. To see the full list of analyst forecasts on RHI Magnesita NV stock, see the GB:RHIM Stock Forecast page.