Rheinmetall AG (RHM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rheinmetall AG

MTU Aero Engines AG

HENSOLDT AG

Why is Rheinmetall AG ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 25.66%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.31

The company declared positive results in Dec'23 after negative results in Sep'23

OPERATING CF(Y) Highest at EUR 743.00 MM
NET SALES(Q) Highest at EUR 2,558 MM
PBDIT(Q) Highest at EUR 569 MM.

With ROE of 21.66%, it has a Very Expensive valuation with a 17.16 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 257.42%, its profits have risen by 34.8% ; the PEG ratio of the company is 2.4

Consistent Returns over the last 3 years

Along with generating 257.42% returns in the last 1 year, the stock has outperformed Germany DAX (TR) in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rheinmetall AG should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rheinmetall AG for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rheinmetall AG

141.81%

34.96

49.43%

Germany DAX (TR)

18.37%

1.26

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.11%

EBIT Growth (5y)

32.36%

EBIT to Interest (avg)

13.31

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.60

Tax Ratio

25.60%

Dividend Payout Ratio

49.06%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

25.66%

ROE (avg)

18.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

17.16

EV to EBIT

54.15

EV to EBITDA

41.06

EV to Capital Employed

12.78

EV to Sales

7.32

PEG Ratio

2.44

Dividend Yield

ROCE (Latest)

23.59%

ROE (Latest)

21.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Rheinmetall AG

Net Sales - Quarterly

At EUR 2,558 MM has Grown at 47.4 %

over average Net Sales of the previous four periods of EUR 1,735 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR 426 MM has Grown at 136.0 %

over average PBT of the previous four periods of EUR 181 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (EUR MM)

Profit After Tax (PAT) - Quarterly

At EUR 401 MM has Grown at 193.2 %

over average PAT of the previous four periods of EUR 137 MM

MOJO Watch

Near term PAT trend is very positive

PAT (EUR MM)

Operating Cash Flow - Annually

Highest at EUR 743.00 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Net Sales - Quarterly

Highest at EUR 2,558 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit (PBDIT) - Quarterly

Highest at EUR 569 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Operating Profit Margin - Quarterly

Highest at 22.24%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at EUR 426 MM.

in the last five periods

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (EUR MM)

Profit After Tax (PAT) - Quarterly

Highest at EUR 401 MM.

in the last five periods

MOJO Watch

Near term PAT trend is positive

PAT (EUR MM)

Earnings per Share (EPS) - Quarterly

Highest at EUR 7.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Here's what is not working for Rheinmetall AG

Interest - Half-Yearly

At EUR 69.00 MM has Grown at 64.29%

over previous Year

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.83 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)