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Rheinmetall Ag Unsponsored Adr (RNMBY)
:RNMBY
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Rheinmetall
(OTC:RNMBY)
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Rating:60Neutral
Price Target:
$426.00
▲(4.79% Upside)
Rheinmetall's overall stock score is primarily supported by its strong financial performance, characterized by robust revenue growth and cash flow management. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation, which negatively impacts the overall score.
Rheinmetall (RNMBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.24B
Dividend Yield0.45%
Average Volume (3M)4.64K
Price to Earnings (P/E)100.2
Beta (1Y)0.22
Revenue Growth31.97%
EPS Growth52.78%
CountryUS
Employees29,515
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.66
Shares Outstanding230,012,660
10 Day Avg. Volume7,710
30 Day Avg. Volume4,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue9.38
Enterprise Value/Gross Profit18.29
Enterprise Value/Ebitda52.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rheinmetall Business Overview & Revenue Model
Company DescriptionRheinmetall AG is a leading German defense and automotive technology company, operating primarily in two sectors: Defense and Automotive. The Defense segment specializes in the development and production of military equipment, including armored vehicles, munitions, and various defense systems. The Automotive sector focuses on innovative solutions such as emission control technologies and vehicle safety systems, catering to a diverse range of automotive manufacturers globally.
How the Company Makes MoneyRheinmetall 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in the defense segment, strategic partnerships, and an upgraded credit rating. However, challenges remain in the civil business segment, and there are potential delays in production due to unforeseen events like the Murcia fire.Q1-2025 Updates
Positive Updates
Record Sales Growth in Defense Segment
Sales growth in the defense segment increased by 33%, reaching EUR 1.795 billion. Overall group sales grew by 46% to EUR 2.305 billion.
Strong Operating Margin in Defense
The defense segment achieved a record operating margin of 11.5%, with group operating margins at 8.7%.
Substantial Backlog and Nomination Growth
Backlog grew by 56% to over EUR 62 billion, with nominations increasing by 181% to more than EUR 11 billion.
High Volume of Job Applications
Rheinmetall received 70,000 job applications in Q1, indicating strong interest from potential employees.
Positive Free Cash Flow
Operational free cash flow increased by EUR 454 million compared to Q1 of last year, totaling over EUR 0.25 billion.
Strategic Partnerships and Joint Ventures
Rheinmetall entered into a joint venture with Lockheed Martin for missile production and with ICEYE for satellite technology, indicating strategic expansion.
Upgraded Credit Rating
Moody's upgraded Rheinmetall's credit rating to Baa1.
Negative Updates
Struggles in Civil Business
The civil business segment continues to struggle, with a decline in sales year-on-year by 7% and a profit margin of only 1.8%.
Impact of Murcia Fire
A fire in Murcia impacted ammunition production, causing a potential delay of about EUR 200 million from Q2 to Q3.
Challenges with Frame to Fixed Contract Conversion
The conversion of frame contracts to fixed contracts is expected to take time, impacting the short-term ability to book orders.
Company Guidance
In the first quarter of 2025, Rheinmetall reported a robust performance, particularly in its defense segment, with sales soaring by 33% to EUR1.795 billion and an impressive 46% growth on a group level to EUR2.305 billion. The defense operating results surged by 96% to EUR206 million, achieving a record operating margin of 11.5%, while the group's operational margin stood at 8.7%. The company's backlog expanded by 56% to over EUR62 billion, with nominations skyrocketing by 181% to more than EUR11 billion. Additionally, Rheinmetall received 70,000 applications in Q1, signaling strong workforce interest. The operational free cash flow increased by EUR454 million compared to the previous year, reaching over EUR0.25 billion. CapEx was managed at 6.6%, and the company anticipates needing to invest more in the coming years. The outlook for Rheinmetall remains optimistic, with expectations of significant contributions from planned joint ventures and increased defense spending across Europe.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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
Negative
406.52
Price Trends
424.76
Negative
414.64
Negative
346.01
Positive
Market Momentum
-8.81
Positive
41.17
Neutral
63.95
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 406.52 is below the 20-day moving average (MA) of 423.36, below the 50-day MA of 424.76, and above the 200-day MA of 346.01, indicating a neutral trend. The MACD of -8.81 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.95 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
| ― | $92.78B | 22.47 | 17.78% | 1.72% | 11.86% | 17.39% | |
| ― | $53.67B | 32.09 | 8.90% | 1.66% | 2.93% | 43.29% | |
| ― | $83.49B | 21.36 | 26.15% | 1.49% | -0.14% | 72.35% | |
| ― | $112.30B | 27.12 | 62.78% | 2.72% | 2.88% | -35.15% | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | $93.24B | 100.15 | 20.96% | 0.45% | 31.97% | 52.78% | |
| ― | $161.50B | ― | ― | ― | 2.41% | -193.57% |
* Industrials Sector Average
RNMBY
Rheinmetall
403.81
301.43
294.42%
BA
Boeing
213.58
64.27
43.04%
GD
General Dynamics
343.48
57.74
20.21%
LHX
L3Harris Technologies
286.87
44.19
18.21%
LMT
Lockheed Martin
485.33
-45.78
-8.62%
NOC
Northrop Grumman
584.99
84.74
16.94%
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.