Rheinmetall Ag Unsponsored Adr (RNMBY)
OTHER OTC:RNMBY
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Rheinmetall
(OTC:RNMBY)
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Rating:62Neutral
Price Target:
$304.00
▼(-12.31% Downside)
Action:Downgraded
Date:05/09/26
The score reflects solid underlying financial quality and a notably strong outlook/backlog from the latest earnings call, tempered by weak near-term technicals (downtrend and negative momentum) and a demanding valuation (high P/E, low yield). Cash-flow volatility and weaker recent cash conversion are an additional constraint on the overall rating.
Positive Factors
Large backlog & high coverage
A ~EUR64bn backlog with roughly EUR41bn fixed and ~91% coverage gives multi-year revenue visibility across segments. This reduces near-term demand risk, supports production planning and staffing, and underpins predictable revenue recognition across defense programs.
Negative Factors
Weak cash conversion & prepayment reliance
Free-cash-flow conversion has been volatile and TTM FCF covers only about half of net income. Management's cash-conversion targets materially depend on sizeable customer prepayments (~EUR2bn), increasing liquidity and execution risk if advance payments or timings fall short.
Read all positive and negative factors
Positive Factors
Negative Factors
Large backlog & high coverage
A ~EUR64bn backlog with roughly EUR41bn fixed and ~91% coverage gives multi-year revenue visibility across segments. This reduces near-term demand risk, supports production planning and staffing, and underpins predictable revenue recognition across defense programs.
Read all positive factors
Rheinmetall (RNMBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.34B
Dividend Yield0.5%
Average Volume (3M)95.99K
Price to Earnings (P/E)148.6
Beta (1Y)0.39
Revenue Growth-1.37%
EPS Growth-1.44%
CountryUS
Employees29,515
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.47
Shares Outstanding233,317,600
10 Day Avg. Volume152,112
30 Day Avg. Volume95,986
Financial Highlights & Ratios
PEG Ratio2.21
Price to Book (P/B)9.51
Price to Sales (P/S)4.99
P/FCF Ratio35.07
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue6.05
Enterprise Value/Gross Profit14.08
Enterprise Value/Ebitda32.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.89
Revenue Forecast (FY)$16.55B
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 S...
How the Company Makes Money
Rheinmetall primarily makes money by designing, manufacturing, and supporting defense systems and platforms for government and defense customers. Key revenue streams include: (1) Sales of defense products such as military vehicles, weapon systems,...
Rheinmetall Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a strong set of financial results (double-digit operating-profit growth, higher margins, robust free cash flow) and ambitious growth guidance for 2026 with large backlog and nomination momentum across ammunition, vehicles, air defense, naval and space. Management highlighted active capacity ramp-ups and strategic acquisitions/JVs to capture accelerated defense spending. Key challenges were customer-side timing delays, a site accident that reduced 2025 sales, margin pressure in some ramping digital and naval areas, and reliance on prepayments to achieve elevated cash-conversion outcomes. On balance, the positives (strong organic growth, margin expansion, large fixed backlog and concrete ramp plans) outweigh the execution and timing risks described.Positive Updates
Strong revenue and operating profit growth (FY2025)
Continuing-operations sales were reported at nearly EUR 10.0 billion in FY2025; operating result increased 33% to EUR 1.841 billion and operating margin expanded to 18.5%.
Negative Updates
Murcia accident and its sales impact
An accident at the Murcia site reduced 2025 sales by more than EUR 200 million (ammunition business impact) and constrained year-over-year growth that otherwise would have been larger.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong revenue and operating profit growth (FY2025)
Continuing-operations sales were reported at nearly EUR 10.0 billion in FY2025; operating result increased 33% to EUR 1.841 billion and operating margin expanded to 18.5%.
Read all positive updates
Company Guidance
Rheinmetall guided FY‑2026 sales of EUR 14.0–14.5bn (c. +40–45% YoY) with an operating margin rising to ~19% (from 18.5% in 2025 when sales were ~EUR10bn and EBIT was EUR1.841bn, +33%), backed by a year‑end 2025 backlog of ~EUR64bn (≈EUR41bn fixed) and a 2025 nomination run‑rate of ~EUR26.4bn; management said 2026 sales are ~91% covered and sees a broader order pipeline (up to ~EUR80bn potential). Segment guidance includes Vehicles ~+20% (to ~EUR6bn, margin 12–13%), Weapon & Ammunition ~+40% (margin ~30%), Digital Systems ~+27%, Air Defense ~+25% (margin ~19%), and Naval Systems EUR1.3–1.5bn (margin 11–13% with a 15% target long‑term). Cash guidance targets an operational free‑cash‑flow conversion of ~40% (management noted upside if large down‑payments materialize), CapEx is expected broadly in line with prior CMD plans (2025 CapEx ~7.8% of sales), and headcount (ex‑civilian/naval) is ~29,000.Rheinmetall Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.58B | 9.54B | 9.75B | 7.18B | 6.41B | 5.66B |
| Gross Profit | 4.12B | 2.31B | 5.06B | 3.94B | 3.38B | 3.03B |
| EBITDA | 1.81B | 1.82B | 1.77B | 1.23B | 960.00M | 838.00M |
| Net Income | 720.75M | 668.53M | 717.00M | 535.00M | 474.00M | 432.00M |
Balance Sheet | ||||||
| Total Assets | 19.63B | 17.07B | 14.34B | 11.71B | 8.09B | 7.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.65B | 1.25B | 915.00M | 696.00M | 1.22B |
| Total Debt | 2.16B | 1.28B | 2.42B | 1.91B | 972.00M | 921.00M |
| Total Liabilities | 13.60B | 11.46B | 9.88B | 8.06B | 5.01B | 5.11B |
| Stockholders Equity | 5.34B | 5.01B | 4.05B | 3.32B | 2.81B | 2.42B |
Cash Flow | ||||||
| Free Cash Flow | 706.22M | 1.36B | 988.00M | 345.00M | -175.00M | 419.00M |
| Operating Cash Flow | 1.62B | 2.20B | 1.72B | 743.00M | 174.00M | 690.00M |
| Investing Cash Flow | -1.90B | -809.73M | -1.17B | -1.18B | -534.00M | -462.00M |
| Financing Cash Flow | 569.58M | -827.02M | -234.00M | 746.00M | -131.00M | -202.00M |
Rheinmetall Technical Analysis
Negative
346.66
Price Trends
325.77
Negative
362.80
Negative
379.59
Negative
Market Momentum
-15.66
Negative
42.16
Neutral
89.13
Negative
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 above the 20-day moving average (MA) of 295.05, above the 50-day MA of 325.77, and below the 200-day MA of 379.59, indicating a bearish trend. The MACD of -15.66 indicates Negative momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 89.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNMBY.
Rheinmetall Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $91.60B | 21.10 | 17.41% | 1.73% | 9.35% | 10.49% | |
69 Neutral | $57.07B | 32.48 | 8.87% | 1.61% | 5.79% | 9.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $78.34B | 27.70 | 28.05% | 1.55% | 4.95% | 26.05% | |
62 Neutral | $65.34B | 148.59 | 14.85% | 0.50% | -1.37% | -1.44% | |
59 Neutral | $120.54B | 23.12 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $173.12B | -10,177.67 | -8723.08% | ― | 32.74% | ― |
* Industrials Sector Average
RNMBY
Rheinmetall
284.66
-117.03
-29.13%
BA
Boeing
219.02
16.66
8.23%
GD
General Dynamics
342.89
73.10
27.09%
LHX
L3Harris Technologies
311.98
78.49
33.62%
LMT
Lockheed Martin
533.24
76.83
16.83%
NOC
Northrop Grumman
555.58
91.58
19.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.