Rheinmetall (RNMBY) AI Stock Analysis

• Market Cap: $85.47B
• Dividend Yield: 0.5%
• Average Volume (3M): 11.69K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.41
• Revenue Growth: 26.96%
• EPS Growth: 46.74%
• Country: US
• Employees: 29,515
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.25
• Shares Outstanding: 232,583,200
• 10 Day Avg. Volume: 11,670
• 30 Day Avg. Volume: 11,692
• PEG Ratio: 2.21
• Price to Book (P/B): 9.51
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 35.07
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 7.37
• Enterprise Value/Gross Profit: 31.67
• Enterprise Value/Ebitda: 40.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.16
• Revenue Forecast (FY): $16.92B

• Rating: 60 Neutral
• Price Target: $392.00 ▲(13.08% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily supported by strong recent cash-flow performance and a strengthening balance sheet, which lift financial performance. This is tempered by weak technical momentum (price below key moving averages and negative MACD) and a demanding valuation (high P/E with a low dividend yield).

Positive Factors

Cash generation

Sustained and rising operating and free cash flow through 2024–2025 strengthens internal funding for capex, R&D, and working capital. Durable FCF improves ability to pay down debt, finance multi‑year programs, and support strategic investment without routine reliance on external financing.

Balance sheet improvement

Material deleveraging and higher equity provide increased financial flexibility and resilience. Lower leverage reduces interest burden and bankruptcy risk, enabling the company to pursue large government contracts, sustain supply chains, and invest in backlog conversion across defense cycles.

Diversified defense business model

A broad portfolio across platforms, munitions, electronics and lifecycle services creates multiple, partly recurring revenue channels. Multi‑year procurement and after‑sales support produce steadier earnings and reduce dependence on any single contract or product line over medium term.

Negative Factors

Recent revenue decline

A sharp year‑over‑year revenue drop signals lumpy contract timing or weaker order intake; even with margin gains, reduced scale can pressure absolute profits and cash conversion. If sustained, lower top line limits reinvestment and weakens bargaining power with suppliers.

Earnings volatility

Historic swings in profitability reflect sensitivity to contract timing, project execution and pricing. This uneven earnings profile complicates forecasting, capital allocation and long‑term planning, increasing execution risk around large, multi‑year defense programs.

Dependence on government budgets & approvals

Heavy reliance on public procurement and export clearances exposes revenue visibility to political cycles, regulatory shifts, and export controls. Such constraints can delay orders, restrict market access, and create multi‑period revenue uncertainty despite strong underlying capabilities.

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 mainly by selling defense products and services to government customers and allied procurement agencies, typically under multi-year procurement contracts. Key revenue streams include: (1) Vehicle systems: development, production, and upgrades of military wheeled and tracked vehicles (and associated mission equipment), plus lifecycle support such as spare parts, maintenance, and modernization programs that generate recurring revenue over the fleet’s service life. (2) Weapons and ammunition: sales of medium- and large-caliber weapons, ammunition, and related propellants/explosives, where revenue is driven by procurement volumes, replenishment demand, and long-term supply arrangements. (3) Electronic solutions: sales of sensors, air defense elements, soldier systems, simulation/training, and command-and-control/digital battlefield components, often bundled with integration work and ongoing support. (4) Services and support: repair/overhaul, field service, logistics, training, and systems integration, which can provide steadier earnings than initial equipment deliveries. (5) Automotive-related business: sales of components and systems for vehicle manufacturers and industrial customers (e.g., selected powertrain, air management, or emissions-related solutions depending on the portfolio at the time), generally tied to production volumes and long-term supply relationships. Earnings are influenced by defense budgets, geopolitical demand, contract timing (milestone-based deliveries and acceptance), export approvals/regulations, and the company’s role in national and multinational defense programs; specific partnerships are not reliably available from the prompt, so null.

Rheinmetall Financial Statement Overview

Summary

Overall fundamentals are solid, supported by strong recent cash flow (rising operating cash flow and materially higher free cash flow in 2025) and an improving balance sheet (meaningfully lower debt and higher equity). The main offset is the notable 2025 revenue decline (~-13%) and some historical/metric volatility that makes near-term growth less consistent.

Income Statement

Revenue expanded strongly from 2022–2024, but the latest annual period (2025) shows a notable revenue decline (about -13%), creating a mixed near-term growth picture. Profitability is generally solid and improving at the operating level, with operating margin rising from ~11% (2022) to ~14% (2024) and ~19% (2025). Net margins are steady around ~7% in recent years, but earnings quality looks somewhat uneven given the sharp swing from near-breakeven profitability in 2020 to normalized profitability thereafter.

Balance Sheet

Leverage appears manageable and has improved versus 2024, with total debt falling meaningfully (from ~2.42B to ~1.28B) while equity increased (from ~4.05B to ~5.01B), supporting a stronger capital position. Asset growth has been robust over time (notably from 2020 through 2025), which can be positive, though it also implies the business is scaling its balance sheet. Some provided leverage/return fields are missing or shown as 0.0 in 2025, limiting full year-to-year comparability.

Cash Flow

Cash generation is a clear strength recently: operating cash flow increased sharply in 2024 and further in 2025, and free cash flow is strongly positive in both years (after a negative free cash flow year in 2022). Free cash flow in 2025 is materially higher than 2024, indicating improving conversion and/or working-capital tailwinds. The main weakness is volatility—cash flow was much weaker in 2022 (including negative free cash flow), and some cash-flow ratio fields are missing/0.0 in 2025, which reduces transparency on coverage metrics.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.54B	9.75B	7.18B	6.41B	5.66B
Gross Profit	2.31B	5.06B	3.94B	3.38B	3.03B
EBITDA	1.82B	1.77B	1.23B	960.00M	838.00M
Net Income	668.53M	717.00M	535.00M	474.00M	432.00M
Balance Sheet
Total Assets	17.07B	14.34B	11.71B	8.09B	7.73B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.25B	915.00M	696.00M	1.22B
Total Debt	1.28B	2.42B	1.91B	972.00M	921.00M
Total Liabilities	11.46B	9.88B	8.06B	5.01B	5.11B
Stockholders Equity	5.01B	4.05B	3.32B	2.81B	2.42B
Cash Flow
Free Cash Flow	1.36B	988.00M	345.00M	-175.00M	419.00M
Operating Cash Flow	2.20B	1.72B	743.00M	174.00M	690.00M
Investing Cash Flow	-809.73M	-1.17B	-1.18B	-534.00M	-462.00M
Financing Cash Flow	-827.02M	-234.00M	746.00M	-131.00M	-202.00M

Rheinmetall Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNMBY, the sentiment is Negative. The current price of 346.66 is below the 20-day moving average (MA) of 381.11, below the 50-day MA of 402.06, and below the 200-day MA of 402.52, indicating a bearish trend. The MACD of -8.13 indicates Negative momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNMBY.

Rheinmetall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$102.87B	19.57	26.50%	1.55%	-0.14%	72.35%
LHX	75 Outperform	$68.80B	47.45	8.28%	1.61%	2.83%	47.00%
GD	74 Outperform	$95.54B	21.58	17.57%	1.73%	11.86%	17.39%
LMT	74 Outperform	$147.78B	22.26	80.53%	2.77%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RNMBY	60 Neutral	$85.47B	28.35	14.96%	0.50%	26.96%	46.74%
BA	56 Neutral	$161.77B	74.05	-94.94%	―	10.19%	-6.03%