Rheinmetall RHM.DE
What does Rheinmetall do?
Rheinmetall is a German defense and technology group headquartered in Düsseldorf. The company develops and manufactures military vehicles, weapons, ammunition and electronic systems, and supplies predominantly government customers such as armed forces and defense ministries. The business is divided into several segments: Vehicle Systems (combat, transport and special vehicles, protection and turret systems), Weapons and Ammunition (guns, artillery ammunition, propellants, protection solutions) and Electronic Solutions (sensors, networking, command and air defense systems).
In terms of competition, Rheinmetall is among the leading European providers of land systems and ammunition. Its strengths lie in its broad product range, in-house manufacturing and long-standing relationships with NATO countries. Competitors include KNDS, BAE Systems, Leonardo, Thales and large US providers. Alongside defense projects, there are cooperations with partners and joint ventures through which the company complements its technologies and market access. Long-term framework contracts and series orders shape the business structure.
Score profile
Rank vs. Aerospace & Defense (36 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Rheinmetall ranks above average in the group Aerospace & Defense (7.2/10). On growth, the company ranks among the best in the group Aerospace & Defense (8.9/10). On valuation (higher = cheaper), the stock ranks above average in the group Aerospace & Defense (7.2/10). On financial strength, Rheinmetall ranks below average in the group Aerospace & Defense (3.1/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 17.2x | 24.3x | better than 84 % |
| Trailing P/E | 30.0x | 29.0x | better than 46 % |
| PEG ratio | 0.3x | 1.5x | better than 98 % |
| EV/EBITDA | 17.2x | 18.4x | better than 62 % |
| Price/sales | 3.3x | 3.2x | better than 43 % |
| Price/book | 7.5x | 3.6x | better than 23 % |
| Revenue growth | 36.4% | 11.0% | better than 88 % |
| Earnings growth | 92.7% | 10.0% | better than 90 % |
| Gross margin | 52.0% | 22.8% | better than 88 % |
| Operating margin | 14.5% | 10.7% | better than 72 % |
| Net margin | 7.0% | 7.7% | better than 43 % |
| Return on equity | 26.7% | 11.9% | better than 84 % |
| Debt/equity | 57.5% | 51.8% | better than 32 % |
| Current ratio | 1.0x | 2.2x | better than 4 % |
| Free cash flow yield | 2.0% | 1.5% | better than 57 % |
| Dividend yield | 1.4% | 0.9% | – |
| Payout ratio | 39.8% | 26.0% | – |
| Beta | 0.45 | 0.96 | – |
Valuation: what is Rheinmetall worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Rheinmetall a model range of 862.88 EUR to 1,340.67 EUR per share.
22 analysts, average rating “Buy”, average price target 1,402.36 EUR (+64.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The size of defense budgets and the procurement programs of NATO countries largely determine the order situation.
- Long-term framework contracts and a high order backlog provide planning visibility for production and revenue recognition.
- Utilization and expansion of manufacturing capacity, above all in ammunition, influence growth and profitability.
Risks
- Dependence on government customers makes the business vulnerable to political decisions and budget shifts.
- Arms exports are subject to licensing requirements that can change at short notice or delay deliveries.
- Complex large-scale projects carry risks relating to costs, delivery dates, supply chains and raw material supply.
What to look for with Rheinmetall
The order backlog in relation to revenue is meaningful because it shows how far production is already covered by contracts given long project cycles.