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Rheinmetall AG (DE:RHM)
XETRA:RHM
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Rheinmetall (RHM) AI Stock Analysis

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DE:RHM

Rheinmetall

(XETRA:RHM)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
€1,227.00
▲(18.25% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily driven by strong operating performance and sustained revenue growth, but is held back by weakening cash conversion and rising leverage. Technically, momentum is mildly positive but the stock remains below longer-term moving averages, and valuation is a key headwind due to the very high P/E and modest dividend yield.
Positive Factors
Sustained Revenue Growth
Multi-year revenue expansion to €10.4B TTM reflects durable demand and backlog in defense programs. Large, multi-year government contracts provide visibility into future sales, enable scale advantages across manufacturing and supply chains, and support investment in product development.
Negative Factors
Rising Leverage
Material increase in debt reduces financial flexibility and raises interest and execution risk. With higher leverage, the company is more sensitive to cash flow volatility and may face constraints on organic investment, M&A or bidding on capital-intensive programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year revenue expansion to €10.4B TTM reflects durable demand and backlog in defense programs. Large, multi-year government contracts provide visibility into future sales, enable scale advantages across manufacturing and supply chains, and support investment in product development.
Read all positive factors

Rheinmetall (RHM) vs. iShares MSCI Germany ETF (EWG)

Rheinmetall Business Overview & Revenue Model

Company Description
Globally, Rheinmetall AG is a technology group that delivers advanced solutions to both the mobility and security sectors. Its operations are structured into five distinct business units: Vehicle Systems, Weapon and Ammunition, Electronic Solution...
How the Company Makes Money
Rheinmetall primarily makes money by selling defense products and delivering long-term defense programs to government customers, complemented by aftermarket support and services. Key revenue streams include: (1) Defense platform sales and programs...

Rheinmetall Financial Statement Overview

Summary
Strong multi-year revenue growth and improving operating profitability (EBIT margin rising to ~18% TTM) support a solid fundamental profile. Offsetting this, leverage increased materially (debt-to-equity ~0.60 TTM) and cash conversion weakened with a sharp TTM free cash flow decline and lower FCF-to-net income coverage, alongside notable TTM gross margin compression.
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.43B9.94B9.75B7.18B6.41B5.66B
Gross Profit3.89B5.20B5.06B3.94B3.38B3.03B
EBITDA2.41B2.19B1.77B1.23B960.00M850.00M
Net Income716.00M696.00M717.00M535.00M474.00M291.00M
Balance Sheet
Total Assets20.64B17.08B14.34B11.94B8.09B7.73B
Cash, Cash Equivalents and Short-Term Investments255.00M1.69B1.25B915.00M696.00M1.22B
Total Debt2.98B1.28B2.42B1.91B972.00M921.00M
Total Liabilities14.87B11.46B9.88B8.30B5.01B5.11B
Stockholders Equity4.97B5.01B4.05B3.32B2.81B2.42B
Cash Flow
Free Cash Flow390.00M1.41B988.00M345.00M-175.00M419.00M
Operating Cash Flow1.31B2.29B1.72B743.00M174.00M690.00M
Investing Cash Flow-1.93B-843.00M-1.17B-1.18B-534.00M-462.00M
Financing Cash Flow595.00M-861.00M-234.00M746.00M-131.00M-202.00M

Rheinmetall Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1037.60
Price Trends
50DMA
1094.98
Positive
100DMA
1207.22
Negative
200DMA
1418.82
Negative
Market Momentum
MACD
28.94
Negative
RSI
54.48
Neutral
STOCH
55.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RHM, the sentiment is Neutral. The current price of 1037.6 is below the 20-day moving average (MA) of 1153.89, below the 50-day MA of 1094.98, and below the 200-day MA of 1418.82, indicating a neutral trend. The MACD of 28.94 indicates Negative momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:RHM.

Rheinmetall Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€19.36B20.1320.01%1.05%12.33%10.49%
71
Outperform
€10.39B85.9212.70%0.69%14.69%31.87%
69
Neutral
€4.80B48.7920.97%1.28%10.63%28.99%
64
Neutral
€54.22B73.9214.33%1.11%-2.29%-17.37%
58
Neutral
€4.78B96.927.83%0.49%18.38%642.89%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
€7.88B28.963.04%1.22%-2.22%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:RHM
Rheinmetall
1,155.40
-451.04
-28.08%
DE:MTX
MTU Aero Engines
352.40
-24.77
-6.57%
DE:OHB
OHB SE
220.00
153.79
232.28%
DE:TKA
thyssenkrupp
13.37
6.86
105.25%
DE:HAG
HENSOLDT AG
89.30
3.28
3.82%
DE:R3NK
RENK Group AG
47.82
-9.98
-17.27%
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.Date of analysis: Aug 10, 2026