Education
About Us
Working with TipRanks
Follow Us
Rheinmetall (RNMBY)
OTHER OTC:RNMBY
Top Page
Rheinmetall
(OTC:RNMBY)
77Outperform
Rheinmetall (RNMBY) vs. S&P 500 (SPY)
Market Cap
$64.02B
Dividend Yield0.29%
Average Volume (3M)5.08K
Price to Earnings (P/E)79.8
Beta (1Y)0.53
Revenue Growth29.76%
EPS Growth17.51%
CountryUS
Employees28,539
SectorIndustrials
Sector Strength67
IndustryAerospace & Defense
Share Statistics
EPS (TTM)3.55
Shares Outstanding221,495,350
10 Day Avg. Volume0
30 Day Avg. Volume5,083
Financial Highlights & Ratios
PEG Ratio2.39
Price to Book (P/B)N/A
Price to Sales (P/S)2.02
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rheinmetall Business Overview & Revenue Model
Company DescriptionRheinmetall 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 MoneyRheinmetall generates revenue through two main segments: Defense and Automotive. The Defense segment is the primary revenue driver, offering products such as armored vehicles, weapons systems, and ammunition, alongside electronic defense and simulation systems. This sector benefits significantly from government contracts, long-term defense procurement programs, and international expansion, particularly in NATO countries. The Automotive segment, though smaller, contributes by supplying components like pistons, bearings, and electric motors to automotive manufacturers across the globe. Rheinmetall's earnings are further bolstered by strategic partnerships and joint ventures in both sectors, enhancing its product offerings and expanding its market reach.
Rheinmetall Financial Statement Overview
Summary
Rheinmetall shows strong revenue growth and profitability with a solid balance sheet and robust cash flow. The company maintains zero debt, enhancing financial stability, although there is potential to better utilize leverage for growth.Income Statement
Rheinmetall shows strong revenue growth with a TTM increase from €7.18B to €8.83B, indicating a robust expansion trajectory. Gross profit margin remains solid at 29.97%, and net profit margin is healthy at 6.43% for TTM, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also positive, suggesting operational efficiency. However, the gross profit margin has decreased compared to previous years, indicating potential pressure on production costs.85
Very Positive
Balance Sheet
The company's balance sheet displays no debt, with a notable equity ratio of 26.86%, indicating financial stability. The ROE is strong at 16.94%, showcasing effective utilization of equity. The absence of debt enhances financial resilience, but the equity ratio suggests possible underutilization of leverage, which could limit growth opportunities.78
Positive
Cash Flow
Rheinmetall's cash flow is robust, with a significant growth in free cash flow from €345M to €881M, reflecting improved cash generation capabilities. Operating cash flow to net income ratio is strong, indicating efficient conversion of earnings to cash. However, the free cash flow to net income ratio suggests potential volatility in cash flows relative to earnings.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.83B | 7.18B | 6.41B | 5.66B | 5.88B | 6.25B | Gross Profit |
| 2.65B | 3.94B | 3.38B | 3.03B | 2.94B | 3.05B | EBIT |
| 821.00M | 1.43B | 754.00M | 624.00M | 293.00M | 521.00M | EBITDA |
| 1.48B | 1.23B | 1.00B | 867.00M | 710.00M | 801.00M | Net Income Common Stockholders |
| 568.00M | 535.00M | 474.00M | 432.00M | 1.00M | 335.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 515.00M | 915.00M | 696.00M | 1.22B | 1.04B | 959.00M | Total Assets |
| 11.59B | 11.71B | 8.09B | 7.73B | 7.27B | 7.42B | Total Debt |
| 1.79B | 1.91B | 972.00M | 921.00M | 1.02B | 993.00M | Net Debt |
| 1.27B | 1.06B | 427.00M | -118.00M | -4.00M | 73.00M | Total Liabilities |
| 7.91B | 8.06B | 5.01B | 5.11B | 5.21B | 5.14B | Stockholders Equity |
| 3.35B | 3.32B | 2.81B | 2.42B | 1.89B | 2.13B |
| Cash Flow | Free Cash Flow | ||||
| 881.00M | 345.00M | -175.00M | 419.00M | 216.00M | 314.00M | Operating Cash Flow |
| 1.46B | 743.00M | 174.00M | 690.00M | 453.00M | 602.00M | Investing Cash Flow |
| -392.00M | -1.18B | -534.00M | -462.00M | -188.00M | -252.00M | Financing Cash Flow |
| -981.00M | 746.00M | -131.00M | -202.00M | -148.00M | -158.00M |
Rheinmetall Technical Analysis
Positive
291.87
Price Trends
207.07
Positive
166.43
Positive
138.35
Positive
Market Momentum
25.72
Positive
68.68
Neutral
23.83
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 291.87 is above the 20-day moving average (MA) of 271.75, above the 50-day MA of 207.07, and above the 200-day MA of 138.35, indicating a bullish trend. The MACD of 25.72 indicates Positive momentum. The RSI at 68.68 is Neutral, neither overbought nor oversold. The STOCH value of 23.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNMBY.
Rheinmetall Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $73.34B | 17.47 | 27.75% | 1.59% | 4.44% | 110.33% | |
77 Outperform | $64.02B | 79.80 | 21.99% | 0.29% | 29.76% | 17.51% | |
77 Outperform | $181.12B | 37.91 | 7.96% | 1.86% | 17.15% | 58.66% | |
75 Outperform | $72.88B | 19.63 | 17.44% | 2.11% | 12.88% | 13.78% | |
74 Outperform | $104.79B | 19.82 | 81.04% | 2.86% | 5.14% | -19.14% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
46 Neutral | $137.38B | ― | -162.23% | ― | -14.49% | -399.90% |
* Industrials Sector Average
Performance Comparison
RNMBY
Rheinmetall
291.54
180.42
162.37%
BA
Boeing
179.11
-10.39
-5.48%
GD
General Dynamics
269.49
-16.28
-5.70%
LMT
Lockheed Martin
442.28
1.06
0.24%
NOC
Northrop Grumman
513.82
50.44
10.89%
RTX
RTX
133.43
37.77
39.48%
Rheinmetall Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 15.73% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in the defense segment with significant growth in operating results and cash flow. However, challenges remain in the civilian business and power systems division, with some delays in order fulfillment.Highlights
Remarkable Growth in Operating Results
Rheinmetall achieved an operating result of nearly €1.5 billion, representing a 61% increase. The operating margin stood at 15.2%.
Strong Defense Segment Performance
Defense business achieved a 19% operating margin, with a notable backlog increase from €38 billion to €55 billion, with potential to reach €65 billion.
Record Operating Free Cash Flow
The company reported an extraordinary operational free cash flow of over €1 billion, exceeding expectations for the first time in its history.
Significant Growth in Personnel
Rheinmetall plans to increase its workforce from 32,000 to 40,000 employees over the next two years.
Lowlights
Civilian Business Decline
The civilian business experienced a decline with a zero growth rate, specifically noting a 2% decrease.
Delayed Orders and Shipments
Delays in digitization and delivery of ships affected expected turnover, with a nomination delay resulting in €26 billion instead of the expected €38 billion.
Challenges in Power Systems Division
The power systems division faced a depressed market environment with no growth and price pressure, resulting in a 2% decline.
Company Guidance
During the Rheinmetall AG Fiscal Year 2024 earnings call, the company provided comprehensive guidance on several key metrics. Sales reached approximately €9.8 billion, narrowly missing the €10 billion target due to shipping delays. The operating results climbed to nearly €1.5 billion, marking a 61% increase, resulting in an operating margin of 15.2%. The Defence business accounted for a significant portion, maintaining a 19% operating margin. Rheinmetall plans to expand its workforce from 32,000 to 40,000 employees over the next two years, supported by their strong operational free cash flow exceeding €1 billion. The backlog stands at €54 billion, with expectations to reach €65 billion factoring in delays. The dividend increased from €5.70 to €0.10 per share, representing 39% of net profit. For the future, Rheinmetall anticipates significant growth opportunities with a potential market of €300 billion to €400 billion by 2030, driven by increased European defence spending.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.