Rheinmetall (RNMBY) AI Stock Analysis

• Market Cap: $93.82B
• Dividend Yield: 0.44%
• Average Volume (3M): 7.15K
• Price to Earnings (P/E): 100.8
• Beta (1Y): 0.28
• Revenue Growth: 31.97%
• EPS Growth: 52.78%
• Country: US
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 0.66
• Shares Outstanding: 230,012,660
• 10 Day Avg. Volume: 2,431
• 30 Day Avg. Volume: 7,146
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 18.29
• Enterprise Value/Ebitda: 52.89
• 1Y Price Target: $423.00
• Price Target Upside: 3.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $423.00 ▲(3.30% Upside)

Rheinmetall's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust growth in the defense segment and significant order backlog contribute positively. However, the high P/E ratio and low dividend yield suggest overvaluation, and technical indicators point to potential short-term bearish momentum.

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 primarily through its two main sectors: Defense and Automotive. In the Defense sector, the company generates revenue by supplying military equipment and technology to governments and defense contractors around the world. This includes sales of armored vehicles, weapons, ammunition, and defense electronics. The company often engages in long-term contracts with governments, which provides a stable revenue stream. In the Automotive sector, Rheinmetall earns income by manufacturing and selling components and systems to major automotive manufacturers. This includes engine parts, air management systems, and emission control technologies, which are used in a wide range of vehicles. The company benefits from its strong research and development capabilities, which help it to maintain competitive in both sectors. Strategic partnerships and joint ventures also play a role in Rheinmetall's revenue generation, allowing it to expand its market reach and enhance its technological offerings.

Rheinmetall Financial Statement Overview

Summary

Rheinmetall shows solid financial health with strong revenue growth, improved profitability, efficient cash flow management, and a balanced capital structure. Although there is moderate leverage, the company efficiently utilizes its equity and generates strong cash flows, supporting its 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	10.67B	9.75B	7.18B	6.41B	5.66B	5.88B
Gross Profit	5.47B	5.06B	3.94B	3.38B	3.03B	2.94B
EBITDA	1.89B	1.77B	1.23B	960.00M	838.00M	644.00M
Net Income	822.00M	717.00M	535.00M	474.00M	432.00M	1.00M
Balance Sheet
Total Assets	14.59B	14.34B	11.71B	8.09B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	352.00M	1.25B	915.00M	696.00M	1.22B	1.04B
Total Debt	0.00	2.42B	1.91B	972.00M	921.00M	1.02B
Total Liabilities	9.68B	9.88B	8.06B	5.01B	5.11B	5.21B
Stockholders Equity	4.46B	4.05B	3.32B	2.81B	2.42B	1.89B
Cash Flow
Free Cash Flow	385.00M	988.00M	345.00M	-175.00M	419.00M	216.00M
Operating Cash Flow	1.24B	1.72B	743.00M	174.00M	690.00M	453.00M
Investing Cash Flow	-1.25B	-1.17B	-1.18B	-534.00M	-462.00M	-188.00M
Financing Cash Flow	-168.00M	-234.00M	746.00M	-131.00M	-202.00M	-148.00M

Rheinmetall Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 409.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 409.49 is above the 20-day moving average (MA) of 382.85, above the 50-day MA of 401.71, and above the 200-day MA of 287.67, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.38 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	79 Outperform	$86.85B	21.68	17.91%	1.81%	11.85%	16.12%
LHX	78 Outperform	$50.96B	30.41	8.90%	1.75%	2.93%	43.29%
NOC	77 Outperform	$83.16B	21.36	26.50%	1.50%	-0.65%	77.20%
RNMBY	73 Outperform	$93.82B	100.79	20.96%	0.44%	31.97%	52.78%
LMT	71 Outperform	$108.30B	26.12	73.06%	2.85%	1.09%	-35.50%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
BA	58 Neutral	$173.62B	―	-162.23%	―	2.41%	-193.57%