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Rheinmetall (RNMBY)
OTHER OTC:RNMBY
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Rheinmetall
(OTC:RNMBY)
77Outperform
Rheinmetall (RNMBY) vs. S&P 500 (SPY)
Market Cap
$68.85B
Dividend Yield0.28%
Average Volume (3M)8.97K
Price to Earnings (P/E)86.4
Beta (1Y)0.51
Revenue Growth35.78%
EPS Growth33.43%
CountryUS
Employees28,539
SectorIndustrials
Sector Strength70
IndustryAerospace & Defense
Share Statistics
EPS (TTM)3.55
Shares Outstanding221,495,350
10 Day Avg. Volume26,908
30 Day Avg. Volume8,969
Financial Highlights & Ratios
PEG Ratio2.58
Price to Book (P/B)N/A
Price to Sales (P/S)2.02
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rheinmetall Business Overview & Revenue Model
Company DescriptionRheinmetall AG is a prominent German automotive and defense company that operates in two main sectors: Automotive and Defence. The Automotive sector, under the brand name Kolbenschmidt Pierburg, focuses on supplying a wide range of components and systems for reducing emissions, fuel consumption, and enhancing engine efficiency. The Defence sector provides products and services including vehicle systems, weapon systems, and ammunition, catering primarily to military and defense clients worldwide.
How the Company Makes MoneyRheinmetall makes money through its dual-sector approach, with significant revenue streams coming from its Defence and Automotive divisions. The Defence sector generates income by supplying military vehicles, electronic and weapon systems, and ammunition to governments and defense organizations globally. Key revenue streams in this sector include long-term contracts with national armies and defense ministries, as well as international partnerships. The Automotive division contributes to the revenue by manufacturing and selling engine components, emission control technologies, and other automotive parts to vehicle manufacturers. This segment benefits from its collaborations with major global car manufacturers, leveraging advancements in technology to meet the growing demand for fuel-efficient and environmentally friendly automotive solutions.
Rheinmetall Financial Statement Overview
Summary
Rheinmetall shows strong revenue growth and profitability with a solid balance sheet and robust cash flow. The company maintains zero debt, enhancing financial stability, although there is potential to better utilize leverage for growth.Income Statement
Rheinmetall shows strong revenue growth with a TTM increase from €7.18B to €8.83B, indicating a robust expansion trajectory. Gross profit margin remains solid at 29.97%, and net profit margin is healthy at 6.43% for TTM, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also positive, suggesting operational efficiency. However, the gross profit margin has decreased compared to previous years, indicating potential pressure on production costs.85
Very Positive
Balance Sheet
The company's balance sheet displays no debt, with a notable equity ratio of 26.86%, indicating financial stability. The ROE is strong at 16.94%, showcasing effective utilization of equity. The absence of debt enhances financial resilience, but the equity ratio suggests possible underutilization of leverage, which could limit growth opportunities.78
Positive
Cash Flow
Rheinmetall's cash flow is robust, with a significant growth in free cash flow from €345M to €881M, reflecting improved cash generation capabilities. Operating cash flow to net income ratio is strong, indicating efficient conversion of earnings to cash. However, the free cash flow to net income ratio suggests potential volatility in cash flows relative to earnings.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.83B | 7.18B | 6.41B | 5.66B | 5.88B | 6.25B | Gross Profit |
| 2.65B | 3.94B | 3.38B | 3.03B | 2.94B | 3.05B | EBIT |
| 821.00M | 1.43B | 754.00M | 624.00M | 293.00M | 521.00M | EBITDA |
| 1.48B | 1.23B | 1.00B | 867.00M | 710.00M | 801.00M | Net Income Common Stockholders |
| 568.00M | 535.00M | 474.00M | 432.00M | 1.00M | 335.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 515.00M | 915.00M | 696.00M | 1.22B | 1.04B | 959.00M | Total Assets |
| 11.59B | 11.71B | 8.09B | 7.73B | 7.27B | 7.42B | Total Debt |
| 1.79B | 1.91B | 972.00M | 921.00M | 1.02B | 993.00M | Net Debt |
| 1.27B | 1.06B | 427.00M | -118.00M | -4.00M | 73.00M | Total Liabilities |
| 7.91B | 8.06B | 5.01B | 5.11B | 5.21B | 5.14B | Stockholders Equity |
| 3.35B | 3.32B | 2.81B | 2.42B | 1.89B | 2.13B |
| Cash Flow | Free Cash Flow | ||||
| 881.00M | 345.00M | -175.00M | 419.00M | 216.00M | 314.00M | Operating Cash Flow |
| 1.46B | 743.00M | 174.00M | 690.00M | 453.00M | 602.00M | Investing Cash Flow |
| -392.00M | -1.18B | -534.00M | -462.00M | -188.00M | -252.00M | Financing Cash Flow |
| -981.00M | 746.00M | -131.00M | -202.00M | -148.00M | -158.00M |
Rheinmetall Technical Analysis
Positive
308.52
Price Trends
238.08
Positive
185.94
Positive
148.38
Positive
Market Momentum
21.42
Positive
66.80
Neutral
40.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNMBY, the sentiment is Positive. The current price of 308.52 is above the 20-day moving average (MA) of 291.43, above the 50-day MA of 238.08, and above the 200-day MA of 148.38, indicating a bullish trend. The MACD of 21.42 indicates Positive momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 40.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNMBY.
Rheinmetall Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $74.39B | 18.21 | 27.75% | 1.60% | 4.44% | 110.33% | |
77 Outperform | $68.85B | 86.37 | 21.99% | 0.28% | 35.78% | 33.43% | |
76 Outperform | $40.08B | 27.11 | 7.85% | 2.19% | 9.82% | 22.33% | |
75 Outperform | $72.95B | 19.94 | 17.44% | 2.09% | 12.88% | 13.78% | |
74 Outperform | $108.77B | 20.79 | 81.04% | 2.78% | 5.14% | -19.14% | |
62 Neutral | $7.50B | 12.89 | 3.19% | 3.38% | 3.64% | -14.27% | |
39 Underperform | $117.01B | ― | -162.23% | ― | -14.49% | -399.90% |
* Industrials Sector Average
Performance Comparison
RNMBY
Rheinmetall
308.52
192.12
165.05%
BA
Boeing
156.84
-10.98
-6.54%
GD
General Dynamics
276.65
-2.28
-0.82%
LHX
L3Harris Technologies
222.03
22.90
11.50%
LMT
Lockheed Martin
474.90
33.40
7.57%
NOC
Northrop
533.99
90.33
20.36%
Rheinmetall Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 22.33% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in the defense segment with significant growth in operating results and cash flow. However, challenges remain in the civilian business and power systems division, with some delays in order fulfillment.Highlights
Remarkable Growth in Operating Results
Rheinmetall achieved an operating result of nearly €1.5 billion, representing a 61% increase. The operating margin stood at 15.2%.
Strong Defense Segment Performance
Defense business achieved a 19% operating margin, with a notable backlog increase from €38 billion to €55 billion, with potential to reach €65 billion.
Record Operating Free Cash Flow
The company reported an extraordinary operational free cash flow of over €1 billion, exceeding expectations for the first time in its history.
Significant Growth in Personnel
Rheinmetall plans to increase its workforce from 32,000 to 40,000 employees over the next two years.
Lowlights
Civilian Business Decline
The civilian business experienced a decline with a zero growth rate, specifically noting a 2% decrease.
Delayed Orders and Shipments
Delays in digitization and delivery of ships affected expected turnover, with a nomination delay resulting in €26 billion instead of the expected €38 billion.
Challenges in Power Systems Division
The power systems division faced a depressed market environment with no growth and price pressure, resulting in a 2% decline.
Company Guidance
During the Rheinmetall AG Fiscal Year 2024 earnings call, the company provided comprehensive guidance on several key metrics. Sales reached approximately €9.8 billion, narrowly missing the €10 billion target due to shipping delays. The operating results climbed to nearly €1.5 billion, marking a 61% increase, resulting in an operating margin of 15.2%. The Defence business accounted for a significant portion, maintaining a 19% operating margin. Rheinmetall plans to expand its workforce from 32,000 to 40,000 employees over the next two years, supported by their strong operational free cash flow exceeding €1 billion. The backlog stands at €54 billion, with expectations to reach €65 billion factoring in delays. The dividend increased from €5.70 to €0.10 per share, representing 39% of net profit. For the future, Rheinmetall anticipates significant growth opportunities with a potential market of €300 billion to €400 billion by 2030, driven by increased European defence spending.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.