Rheinmetall (RNMBY) AI Stock Analysis

• Market Cap: $101.62B
• Dividend Yield: 0.5%
• Average Volume (3M): 20.40K
• Price to Earnings (P/E): 106.5
• Beta (1Y): 0.31
• Revenue Growth: 26.96%
• EPS Growth: 46.74%
• Country: US
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.77
• Shares Outstanding: 230,012,660
• 10 Day Avg. Volume: 17,798
• 30 Day Avg. Volume: 20,398
• PEG Ratio: 1.38
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 26.86
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 8.41
• Enterprise Value/Gross Profit: 16.14
• Enterprise Value/Ebitda: 47.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $384.00 ▲(10.77% Upside)

Rheinmetall's overall stock score is driven by its strong financial performance, particularly in revenue growth and profitability. However, the stock's technical indicators and valuation present challenges, with bearish momentum and a high P/E ratio suggesting potential overvaluation. The decline in free cash flow growth also poses a risk that needs addressing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Rheinmetall's products and services, supporting long-term business expansion and market presence.

Profitability

High profitability margins reflect effective cost management and pricing power, contributing to sustainable earnings and competitive advantage.

Balance Sheet Health

A moderate debt-to-equity ratio suggests financial stability and flexibility, enabling Rheinmetall to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Free Cash Flow Decline

A sharp decline in free cash flow growth can limit Rheinmetall's ability to fund operations and investments, potentially impacting long-term financial health.

Cash Flow Management

Low cash flow ratios relative to net income suggest challenges in converting earnings into cash, which may affect liquidity and operational flexibility.

Free Cash Flow Concerns

Addressing free cash flow issues is crucial for Rheinmetall to maintain its financial stability and support future growth initiatives.

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 generates revenue through multiple streams primarily from its Defense and Automotive divisions. In the Defense sector, revenue comes from contracts with government and military organizations for the supply of advanced weapon systems, vehicles, and munitions. This segment benefits from long-term contracts and ongoing defense budgets across various countries. In the Automotive division, revenue is derived from the sale of components and systems to major automotive manufacturers, including emission control systems and safety technologies. Additionally, Rheinmetall engages in strategic partnerships and joint ventures, enhancing its market access and technological capabilities. Factors contributing to its earnings include increasing defense spending in response to geopolitical tensions, a growing demand for environmentally friendly automotive solutions, and innovation in product offerings.

Rheinmetall Financial Statement Overview

Summary

Rheinmetall demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable with moderate leverage, and the company effectively utilizes its equity. However, the significant decline in free cash flow growth is a concern that needs addressing to ensure sustainable cash flow generation.

Income Statement

Rheinmetall has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.06%. The company maintains strong profitability metrics, with a gross profit margin of 51.30% and a net profit margin of 7.70% in the TTM. EBIT and EBITDA margins are also robust at 13.42% and 17.74%, respectively. These figures indicate a solid financial performance and effective cost management.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.45, indicating a balanced approach to leveraging. The return on equity is strong at 20.14%, reflecting efficient use of equity to generate profits. The equity ratio stands at 29.84%, suggesting a stable capital structure with a reasonable level of equity financing.

Cash Flow

Rheinmetall's cash flow performance is mixed, with a significant decline in free cash flow growth at -86.72% in the TTM. However, the operating cash flow to net income ratio is 0.17, and the free cash flow to net income ratio is 0.31, indicating some level of cash generation relative to net income. The company may need to focus on improving its cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.00B	9.75B	7.18B	6.41B	5.66B	5.88B
Gross Profit	5.73B	5.06B	3.94B	3.38B	3.03B	2.94B
EBITDA	1.96B	1.77B	1.23B	960.00M	838.00M	644.00M
Net Income	865.79M	717.00M	535.00M	474.00M	432.00M	1.00M
Balance Sheet
Total Assets	18.40B	14.34B	11.71B	8.09B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	654.48M	1.25B	915.00M	696.00M	1.22B	1.04B
Total Debt	2.86B	2.42B	1.91B	972.00M	921.00M	1.02B
Total Liabilities	12.34B	9.88B	8.06B	5.01B	5.11B	5.21B
Stockholders Equity	5.49B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow
Free Cash Flow	51.13M	988.00M	345.00M	-175.00M	419.00M	216.00M
Operating Cash Flow	1.01B	1.72B	743.00M	174.00M	690.00M	453.00M
Investing Cash Flow	-1.41B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
Financing Cash Flow	491.54M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 346.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 346.66 is below the 20-day moving average (MA) of 377.01, below the 50-day MA of 378.42, and below the 200-day MA of 388.64, indicating a bullish trend. The MACD of 10.81 indicates Negative momentum. The RSI at 73.87 is Negative, neither overbought nor oversold. The STOCH value of 98.05 is Negative, 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	80 Outperform	$94.93B	22.93	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$84.32B	22.21	26.15%	1.55%	-0.14%	72.35%
LHX	74 Outperform	$60.93B	36.05	9.13%	1.61%	2.83%	47.00%
LMT	70 Outperform	$125.63B	30.31	62.78%	2.77%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RNMBY	61 Neutral	$101.62B	106.50	20.43%	0.50%	26.96%	46.74%
BA	54 Neutral	$183.65B	-16.61	―	―	10.19%	-6.03%