Rheinmetall AG
Rheinmetall AG Fundamental Analysis
Rheinmetall AG (RNMBY) shows weak financial fundamentals with a PE ratio of 78.34, profit margin of 7.53%, and ROE of 14.80%. The company generates $9.7B in annual revenue with weak year-over-year growth of 1.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RNMBY's fundamental strength across five key dimensions:
Efficiency Score
WeakRNMBY struggles to generate sufficient returns from assets.
Valuation Score
WeakRNMBY trades at a premium to fair value.
Growth Score
WeakRNMBY faces weak or negative growth trends.
Financial Health Score
ExcellentRNMBY maintains a strong and stable balance sheet.
Profitability Score
WeakRNMBY struggles to sustain strong margins.
Key Financial Metrics
Is RNMBY Expensive or Cheap?
P/E Ratio
RNMBY trades at 78.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RNMBY's PEG of 3.14 indicates potential overvaluation.
Price to Book
The market values Rheinmetall AG at 10.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.01 times EBITDA. This signals the market has high growth expectations.
How Well Does RNMBY Make Money?
Net Profit Margin
For every $100 in sales, Rheinmetall AG keeps $7.53 as profit after all expenses.
Operating Margin
Core operations generate 15.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.80 in profit for every $100 of shareholder equity.
ROA
Rheinmetall AG generates $3.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rheinmetall AG produces operating cash flow of $1.63B, showing steady but balanced cash generation.
Free Cash Flow
Rheinmetall AG produces free cash flow of $712.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.06 in free cash annually.
FCF Yield
RNMBY converts 1.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
78.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How RNMBY Stacks Against Its Sector Peers
| Metric | RNMBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 78.34 | 26.08 | Worse (Expensive) |
| ROE | 14.80% | 1275.00% | Weak |
| Net Margin | 7.53% | -33581.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 10.40 | Neutral |
| ROA | 3.67% | -1488149.00% (disorted) | Weak |
RNMBY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rheinmetall AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
66315.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
381.76%
Industry Style: Cyclical, Value, Infrastructure
High Growth