XTRA:RHM

Stock Analysis Report

Executive Summary

Rheinmetall AG manufactures and supplies automotive components and defense equipment in Germany and internationally.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Rheinmetall's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RHM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.2%

RHM

-7.8%

DE Industrials

-6.8%

DE Market


1 Year Return

-8.1%

RHM

2.4%

DE Industrials

6.5%

DE Market

Return vs Industry: RHM underperformed the German Industrials industry which returned 1.6% over the past year.

Return vs Market: RHM underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

RHMIndustryMarket
7 Day-10.2%-7.8%-6.8%
30 Day-14.3%-12.5%-3.7%
90 Day-11.4%-13.4%-3.6%
1 Year-6.1%-8.1%5.7%2.4%9.8%6.5%
3 Year20.1%13.9%-5.7%-14.5%6.8%-2.6%
5 Year102.2%87.4%33.8%13.4%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Rheinmetall's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rheinmetall undervalued compared to its fair value and its price relative to the market?

12.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RHM (€86.3) is trading below our estimate of fair value (€98.1)

Significantly Below Fair Value: RHM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RHM is good value based on its PE Ratio (11.9x) compared to the Industrials industry average (14.8x).

PE vs Market: RHM is good value based on its PE Ratio (11.9x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: RHM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RHM is overvalued based on its PB Ratio (2x) compared to the XE Industrials industry average (1x).


Next Steps

Future Growth

How is Rheinmetall forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHM's forecast earnings growth (6.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: RHM's earnings (6.6% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: RHM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RHM's revenue (4.5% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: RHM's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RHM's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Rheinmetall performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHM has high quality earnings.

Growing Profit Margin: RHM's current net profit margins (5%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: RHM's earnings have grown significantly by 32% per year over the past 5 years.

Accelerating Growth: RHM's earnings growth over the past year (13.8%) is below its 5-year average (32% per year).

Earnings vs Industry: RHM earnings growth over the past year (13.8%) exceeded the Industrials industry 7.6%.


Return on Equity

High ROE: RHM's Return on Equity (17.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rheinmetall's financial position?


Financial Position Analysis

Short Term Liabilities: RHM's short term assets (€4.0B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: RHM's short term assets (€4.0B) exceed its long term liabilities (€2.3B).


Debt to Equity History and Analysis

Debt Level: RHM's debt to equity ratio (44.4%) is considered high.

Reducing Debt: RHM's debt to equity ratio has reduced from 66.5% to 44.4% over the past 5 years.

Debt Coverage: RHM's debt is well covered by operating cash flow (51%).

Interest Coverage: RHM's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet

Inventory Level: RHM has a high level of physical assets or inventory.

Debt Coverage by Assets: RHM's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

What is Rheinmetall's current dividend yield, its reliability and sustainability?

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: RHM's dividend (2.43%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: RHM's dividend (2.43%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: RHM's dividend payments have been volatile in the past 10 years.

Growing Dividend: RHM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), RHM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RHM's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Armin Papperger (56yo)

7.1yrs

Tenure

€5,657,000

Compensation

Mr. Armin Papperger serves as the Chief Executive Officer of Rheinmetall Ag of KSPG AG. Mr. Papperger has been the Chairman of the Executive Board and Chief Executive Officer at Rheinmetall AG since Januar ...


CEO Compensation Analysis

Compensation vs Market: Armin's total compensation ($USD6.15M) is above average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Armin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Armin Papperger
Chairman of the Executive Board7.1yrs€5.66mno data
Helmut Merch
CFO and Member of Executive Board & Member of the Management Board Defense7.1yrs€3.30mno data
Peter Krause
Labor Director of Human Resources & Member of Executive Board3.1yrs€2.13mno data
Franz-Bernd Reich
Head of Investor Relations0yrsno datano data
Michael Salzmann
Chief Compliance Officer5.6yrsno datano data
Rolf Giebeler
Senior Executive Officer Law & General Counsel3.1yrsno datano data
Peter Rücker
Head of Corporate Communications0yrsno datano data

5.6yrs

Average Tenure

59yo

Average Age

Experienced Management: RHM's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andreas Georgi
Member of Supervisory Board17.7yrsno datano data
Detlef Moog
Member of Supervisory Board9.6yrsno datano data
Rudolf Luz
Vice Chairman of Supervisory Board7.8yrsno datano data
Ulrich Grillo
Chairman of Supervisory Board0yrsno datano data
Michael Mielke
Member of Supervisory Board9.4yrsno datano data
Roswitha Armbruster
Member of Supervisory Board7.8yrsno datano data
Susanne Hannemann
Member of Supervisory Board7.8yrsno datano data
Daniel Hay
Member of Supervisory Board5.8yrsno datano data
Markus Schaubel
Member of Supervisory Board5.6yrsno datano data
Sven Schmidt
Member of Supervisory Board5.6yrsno datano data

7.8yrs

Average Tenure

58yo

Average Age

Experienced Board: RHM's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rheinmetall AG's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Rheinmetall AG
  • Rheinmetall Platz 1
  • Düsseldorf
  • 40476
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNMB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
RHMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
RHMXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
0NI1LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
RHMDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
RHMSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
RHMETLX (Eurotlx)YesCommon StockITEURJan 1992
RHMWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
RNMB.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.2 ORDUSUSDDec 2008
RHMBBST (Boerse-Stuttgart)UNSP ADR EACH REPR 0.2 ORDDEEURDec 2008

Biography

Rheinmetall AG manufactures and supplies automotive components and defense equipment in Germany and internationally. The company’s automotive products include mechatronics, such as cutting emissions, actuators, and solenoid valves, as well as water, oil, and vacuum pumps; hardparts, including pistons, engine blocks, structural components and cylinder heads, plain bearings, and bushes; and replacement parts. Its defense equipment comprise armored tracked vehicles, CBRN protection systems, turret systems, and wheeled logistics and tactical vehicles; weapons and ammunitions, such as weapon stations, large and medium-caliber weapons and ammunition, protection systems, and propellants and powders; and electronic solutions, including air defense systems, soldier systems, command systems, control and reconnaissance systems, fire control systems, and sensors, as well as simulations for the army, air force, navy, and civil applications. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:20
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.