Rheinmetall (RNMBY) AI Stock Analysis

• Market Cap: $91.75B
• Dividend Yield: 0.45%
• Average Volume (3M): 33.21K
• Price to Earnings (P/E): 109.0
• Beta (1Y): 0.37
• Revenue Growth: 40.34%
• EPS Growth: 41.01%
• Country: US
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.40
• Shares Outstanding: 228,297,960
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 33,206
• PEG Ratio: 0.36
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.22
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $426.00 ▲(5.25%Upside)

Rheinmetall shows strong financial performance with robust growth in its defense segment, supported by a significant order backlog. However, the high valuation and challenges in the civilian business slightly offset these strengths. Technical indicators suggest mixed momentum, but the positive earnings call and strategic expansion plans, especially in defense, enhance the overall outlook.

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 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 Money

Rheinmetall 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 demonstrates solid financial health with strong revenue growth, improved profitability, efficient cash flow management, and a balanced capital structure. Despite moderate leverage, the company efficiently utilizes its equity and generates strong cash flows, supporting operational needs and growth strategies.

Income Statement

Rheinmetall displays strong revenue growth with a 36% increase from 2023 to 2024. The net profit margin improved to 7.35% in 2024, up from 7.45% in 2023. Although EBIT margins are not available for 2024, EBITDA margin in 2024 is 18.12%, showing robust operational efficiency. The consistent growth trajectory and profitability enhancements reflect a strong income statement performance.

Balance Sheet

The company's debt-to-equity ratio has increased slightly from 0.58 in 2023 to 0.60 in 2024, indicating a moderate leverage position. Return on equity (ROE) improved to 17.7% in 2024, up from 16.1% in 2023, showcasing efficient equity utilization. The equity ratio is stable at approximately 28.2% in 2024, suggesting a balanced capital structure, though slightly leveraged.

Cash Flow

Free cash flow grew significantly by 186% from 2023 to 2024, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 2.4 in 2024, demonstrating strong cash conversion efficiency. The free cash flow to net income ratio is 1.38, further highlighting effective cash management. Overall, cash flow performance is strong with improving liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.47B	9.75B	7.18B	6.41B	5.66B	5.88B
	Gross Profit
4.65B	5.06B	3.94B	3.38B	3.03B	2.94B
	EBIT
1.47B	1.41B	1.43B	754.00M	624.00M	293.00M
	EBITDA
1.85B	1.77B	1.23B	960.00M	838.00M	644.00M
	Net Income Common Stockholders
753.00M	717.00M	535.00M	474.00M	432.00M	1.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	1.25B	915.00M	696.00M	1.22B	1.04B
	Total Assets
14.66B	14.34B	11.71B	8.09B	7.73B	7.27B
	Total Debt
0.00	2.42B	1.91B	972.00M	921.00M	1.02B
	Net Debt
-1.08B	1.24B	1.06B	427.00M	-118.00M	-4.00M
	Total Liabilities
9.73B	9.88B	8.06B	5.01B	5.11B	5.21B
	Stockholders Equity
4.47B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow		Free Cash Flow
1.47B	988.00M	345.00M	-175.00M	419.00M	216.00M
	Operating Cash Flow
2.25B	1.72B	743.00M	174.00M	690.00M	453.00M
	Investing Cash Flow
-1.22B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
	Financing Cash Flow
-472.00M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 404.75
• 50DMA: Positive
• 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 RNMBY, the sentiment is Positive. The current price of 404.75 is below the 20-day moving average (MA) of 411.05, above the 50-day MA of 372.52, and above the 200-day MA of 210.32, indicating a neutral trend. The MACD of 7.95 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNMBY.

Rheinmetall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	79 Outperform	$74.82B	19.35	18.23%	2.15%	14.11%	17.65%
LMT	78 Outperform	$109.79B	20.24	82.55%	2.81%	3.12%	-15.29%
LHX	76 Outperform	$46.67B	29.59	8.49%	1.92%	5.39%	36.86%
NOC	74 Outperform	$71.63B	19.59	25.41%	1.86%	0.61%	77.28%
RNMBY	73 Outperform	$91.75B	109.04	21.29%	0.45%	40.34%	41.01%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
BA	58 Neutral	$149.86B	―	-162.23%	―	-9.15%	-406.76%