Rheinmetall
Market Cap
€3.4b
Last Updated
2020/07/02 22:06 UTC
Data Sources
Company Financials +
Executive Summary
Rheinmetall AG manufactures and supplies automotive components and defense equipment in Germany and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, undervalued 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
2.9%
RHM
4.1%
DE Industrials
2.7%
DE Market
1 Year Return
-27.0%
RHM
-1.8%
DE Industrials
0.2%
DE Market
Return vs Industry: RHM underperformed the German Industrials industry which returned -1.8% over the past year.
Return vs Market: RHM underperformed the German Market which returned 0.2% over the past year.
Shareholder returns
| RHM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | 4.1% | 2.7% |
| 30 Day | 4.0% | 3.8% | 3.7% |
| 90 Day | 29.6% | 38.7% | 28.3% |
| 1 Year | -24.4%-27.0% | 1.3%-1.8% | 2.3%0.2% |
| 3 Year | -0.06%-6.9% | 2.5%-7.0% | 4.0%-4.5% |
| 5 Year | 94.1%74.8% | 50.4%27.7% | 14.9%-0.3% |
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
9 months ago | Simply Wall St
Does Rheinmetall AG's (FRA:RHM) P/E Ratio Signal A Buying Opportunity?10 months ago | Simply Wall St
Why You Should Like Rheinmetall AG’s (FRA:RHM) ROCE10 months ago | Simply Wall St
Consider These Factors, Then Buy Rheinmetall AG (FRA:RHM)Valuation
Is Rheinmetall undervalued compared to its fair value and its price relative to the market?
32.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RHM (€78.82) is trading below our estimate of fair value (€115.83)
Significantly Below Fair Value: RHM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RHM is good value based on its PE Ratio (10.7x) compared to the Industrials industry average (13.8x).
PE vs Market: RHM is good value based on its PE Ratio (10.7x) compared to the German market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: RHM is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: RHM is overvalued based on its PB Ratio (1.6x) compared to the XE Industrials industry average (0.9x).
Next Steps
Future Growth
How is Rheinmetall forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
24.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RHM's forecast earnings growth (24% per year) is above the savings rate (0.2%).
Earnings vs Market: RHM's earnings (24% per year) are forecast to grow faster than the German market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RHM's revenue (6.2% per year) is forecast to grow faster than the German market (5.9% per year).
High Growth Revenue: RHM's revenue (6.2% 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 (12.3%).
Next Steps
Past Performance
How has Rheinmetall performed over the past 5 years?
25.5%
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 (5%).
Past Earnings Growth Analysis
Earnings Trend: RHM's earnings have grown significantly by 25.5% per year over the past 5 years.
Accelerating Growth: RHM's earnings growth over the past year (0.9%) is below its 5-year average (25.5% per year).
Earnings vs Industry: RHM earnings growth over the past year (0.9%) underperformed the Industrials industry 11.2%.
Return on Equity
High ROE: RHM's Return on Equity (15.1%) is considered low.
Next Steps
Financial Health
How is Rheinmetall's financial position?
Financial Position Analysis
Short Term Liabilities: RHM's short term assets (€4.3B) exceed its short term liabilities (€2.9B).
Long Term Liabilities: RHM's short term assets (€4.3B) exceed its long term liabilities (€2.3B).
Debt to Equity History and Analysis
Debt Level: RHM's debt to equity ratio (34.1%) is considered satisfactory.
Reducing Debt: RHM's debt to equity ratio has reduced from 68.3% to 34.1% over the past 5 years.
Debt Coverage: RHM's debt is well covered by operating cash flow (71.1%).
Interest Coverage: RHM's interest payments on its debt are well covered by EBIT (13.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Rheinmetall current dividend yield, its reliability and sustainability?
3.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RHM's dividend (3.04%) is higher than the bottom 25% of dividend payers in the German market (1.27%).
High Dividend: RHM's dividend (3.04%) is low compared to the top 25% of dividend payers in the German market (3.83%).
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 (32.7%), 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 (32.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Armin Papperger (57yo)
7.5yrs
Tenure
€5,495,000
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 ($USD6.18M) is above average for companies of similar size in the German market ($USD2.58M).
Compensation vs Earnings: Armin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Executive Board | 7.5yrs | €5.50m | no data | |
| CFO and Member of Executive Board & Member of the Management Board Defense | 7.5yrs | €3.09m | no data | |
| Labor Director of Human Resources & Member of Executive Board | 3.5yrs | €1.97m | no data | |
| Member of Executive Board | 0.25yr | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief Compliance Officer | 6yrs | no data | no data | |
| Senior Executive Officer Law & General Counsel | 3.5yrs | no data | no data | |
| Head of Corporate Communications | no data | no data | no data |
4.8yrs
Average Tenure
58.5yo
Average Age
Experienced Management: RHM's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Member of Supervisory Board | 18.08yrs | €135.00k | no data | |
| Member of Supervisory Board | 10yrs | €95.00k | no data | |
| Vice Chairman of Supervisory Board | 8.17yrs | €180.00k | no data | |
| Chairman of Supervisory Board | no data | €280.00k | no data | |
| Member of Supervisory Board | 9.83yrs | €80.00k | no data | |
| Member of Supervisory Board | 8.17yrs | €100.00k | no data | |
| Member of Supervisory Board | 8.17yrs | €100.00k | no data | |
| Member of Supervisory Board | 6.17yrs | €95.00k | no data | |
| Member of Supervisory Board | 6yrs | €95.00k | no data | |
| Member of Supervisory Board | 6yrs | €100.00k | no data |
8.2yrs
Average Tenure
59yo
Average Age
Experienced Board: RHM's board of directors are considered experienced (8.2 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
- Name: Rheinmetall AG
- Ticker: RHM
- Exchange: DB
- Founded: 1889
- Industry: Industrial Conglomerates
- Sector: Capital Goods
- Market Cap: €3.397b
- Shares outstanding: 43.08m
- Website: https://www.rheinmetall.com/en/rheinmetall_ag/home.php
Number of Employees
Location
- Rheinmetall AG
- Rheinmetall Platz 1
- Düsseldorf
- 40476
- Germany
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RNMB.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1992 |
| RHM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
| RHM | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1992 |
| 0NI1 | LSE (London Stock Exchange) | Yes | Common Stock | GB | EUR | Jan 1992 |
| RHMD | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | EUR | Jan 1992 |
| RHM | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1992 |
| RHM | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1992 |
| RHM | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1992 |
| RNMB.Y | OTCPK (Pink Sheets LLC) | UNSP ADR EACH REPR 0.2 ORD | US | USD | Dec 2008 | |
| RHMB | BST (Boerse-Stuttgart) | UNSP ADR EACH REPR 0.2 ORD | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/02 22:06 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.