# Rheinmetall AG (RHM.XETRA)

Canonical: https://gigainvestors.com/s/RHM.XETRA

Analysis as of: 2026-10-16T07:33:53.331Z. Financial observations: FY2002–FY2026.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 1,026.00 per share; close as of 2026-10-15.

Estimated value: low EUR 183.62 per share, central EUR 235.05 per share, high EUR 274.54 per share. Buy at or below the central value EUR 235.05 per share. Valuation as of 2026-10-16T07:33:53.331Z; scenarios are not confidence intervals.

Expected annual return: 4.6% at the stated quote. About 4.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; DE 10-year bond 3.4% + 4 points).

## Checklist

### understandable: pass

- FY2020 operating-margin dip fully recovered the next year and stayed recovered; holding that year at the preceding margin meets the existing variation limit. Raw variation still determines the price discount.

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.38×

- One fully recovered margin dip: Yes

- Variation with recovered dip held at prior margin: 0.33

- Recovered dip fiscal year: FY2020

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.08×

- FY2019: 0.08×

- FY2020: 0.05×

- FY2021: 0.11×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.14×

- FY2025: 0.17×

- LTM to Jun 2026: 0.19×

### moat: pass

- ROIC, median of available years: 24.5%

- ROIC, second-lowest year: 21.1%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 49.4%

- Recent gross margin (lower of latest and 3-year median): 51.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.9%

- ROIC including acquisitions, ten-year median: 12.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.1%

- FY2017: 25.1%

- FY2018: 24.7%

- FY2019: 24.3%

- FY2020: 13.7%

- FY2021: 27.8%

- FY2022: 21.1%

- FY2023: 21.7%

- FY2024: 27.0%

- FY2025: 39.2%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 2.2B

- Net income, five-year total: EUR 2.8B

- Return on incremental invested capital: 19.1%

- Working capital / revenue, annual change: 4.0 pp

- Working capital / revenue, change between three-year averages: 30.0 pp

- Working capital / revenue, final three-year average: 60.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.73×

- FY2022: 0.92×

- FY2023: 0.91×

- FY2024: 0.91×

- FY2025: 0.44×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 24.7% vs 27.0%

- Per-share earnings: 4.75 to 14.81 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: 1.5%

- Market cap gain: EUR 70B

- Cumulative retained earnings: EUR 2.4B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 1.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.3%

- Per-share value change: EUR 10.05

- Per-share value, starting three-year median: EUR 4.75

- Per-share value, ending three-year median: EUR 14.81

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 1.5%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 2.2B

- Cumulative net income, 10 years: EUR 3.9B

- ROIC, first three-year median: 24.7%

- ROIC, last three-year median: 27.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 4.75

- FY2017: EUR 5.28

- FY2018: EUR 7.08

- FY2019: EUR 7.73

- FY2020: EUR 0.02

- FY2021: EUR 6.74

- FY2022: EUR 12.44

- FY2023: EUR 12.65

- FY2024: EUR 14.81

- FY2025: EUR 14.92

### accounting: pass

- Sloan accruals: -9.3%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.52×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.0%

- FY2017: -5.2%

- FY2018: 0.9%

- FY2019: -3.6%

- FY2020: -6.2%

- FY2021: -5.2%

- FY2022: 4.5%

- FY2023: -1.3%

- FY2024: -7.0%

- FY2025: -9.3%

## Holders

## Price story

Down 48% since Sep 2025 · "Rheinmetall scales down 2026 sales outlook on scrapped frigate program" (finance.yahoo.com, Aug 2026) · sales +5%

Story as of 2026-10-16T09:59:58.177Z; price observation 2026-10-15.

Price needs cash profits to grow 22.8% a year for ten years

- 2025-04-17: Rheinmetall CEO expects order book to balloon by 450% amid Germany military boom ([finance.yahoo.com](https://finance.yahoo.com/news/rheinmetall-ceo-expects-order-book-113644072.html))

- 2025-11-06: Rheinmetall Sales Growth Slows on Delays in German Defense Procurement ([finance.yahoo.com](https://finance.yahoo.com/m/c32f3b09-ede1-376e-8034-3d11df24f905/rheinmetall-sales-growth.html))

- 2026-06-24: Rheinmetall Falls 14% After Germany Cancels Its Biggest Frigate Program ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rheinmetall-falls-14-germany-cancels-132947074.html))

- 2026-07-29: Rheinmetall shares surge after armsmaker reports record profit ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rheinmetall-shares-surge-armsmaker-reports-134943094.html))

- 2026-08-06: Rheinmetall scales down 2026 sales outlook on scrapped frigate program ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rheinmetall-scales-down-2026-sales-145026135.html))

### Sales · FY2025–2026

sales +5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: EUR 5.9B 

- FY2018: EUR 6.1B 

- FY2019: EUR 6.3B 

- FY2020: EUR 5.9B 

- FY2021: EUR 5.7B 

- FY2022: EUR 6.4B 

- FY2023: EUR 7.2B 

- FY2024: EUR 9.8B 

- FY2025: EUR 9.9B 

- FY2026: EUR 10B 

### Gross margin · FY2025

gross margin 52.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 46.3% 

- FY2017: 46.6% 

- FY2018: 48.5% 

- FY2019: 48.7% 

- FY2020: 50.1% 

- FY2021: 53.6% 

- FY2022: 52.7% 

- FY2023: 21.0% 

- FY2024: 51.9% 

- FY2025: 52.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are EUR 9.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2025: revenue 9935000000; grossProfit 5204000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RHM.XETRA: Rheinmetall AG provides mobility and security technologies in Germany, Rest of Europe, North, Middle, and South America, Asia and the Near East, and internationally. The company operates through the Vehicle Systems, Weapon and Ammunition, and Electronic Solutions segments. Its Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and ammunition, protection systems, propellants, and international projects and services. Its Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, cyberspace protection solutions, and training and simulation solutions. The company's products include air defense, soldier, and fire control systems; radar technology; and command, control and reconnaissance systems, as well as simulations for the army, air force, navy, and civil applications. It also engages in the aftermarket activities. 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.

### Why customers stay

Margins ranged from 21% to 52.4% during 2023–25; it earns 24.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2023: grossProfit / revenue = 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2024: grossProfit / revenue = 51.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2025: grossProfit / revenue = 52.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); 10-year return on capital observations [[2016,0.231385078795011],[2017,0.2514839679618445],[2018,0.24673956055399357],[2019,0.24287317088587593],[2020,0.1368175287356322],[2021,0.2778979129997486],[2022,0.21109501227016828],[2023,0.21743070024066624],[2024,0.27036651163907893],[2025,0.39201105554093185]]; median 0.24480636571993475. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 13.5% of cash earnings on expansion; earns 19.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2016: growth capex 55000000; upkeep 228000000; owner earnings 200000000. Growth capex / owner earnings = 0.275.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2017: growth capex 50000000; upkeep 220000000; owner earnings 224000000. Growth capex / owner earnings = 0.22321428571428573.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2018: growth capex 2000000; upkeep 275000000; owner earnings 305000000. Growth capex / owner earnings = 0.006557377049180328.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2019: growth capex 8000000; upkeep 280000000; owner earnings 293400000. Growth capex / owner earnings = 0.027266530334014997.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2021: growth capex 0; upkeep 271000000; owner earnings 213000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2022: growth capex 100000000; upkeep 249000000; owner earnings 497800000. Growth capex / owner earnings = 0.2008838891120932.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2023: growth capex 90000000; upkeep 308000000; owner earnings 531600000. Growth capex / owner earnings = 0.16930022573363432.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2024: growth capex 330000000; upkeep 402000000; owner earnings 651600000. Growth capex / owner earnings = 0.5064456721915286.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); FY2025: growth capex 41185540.60521698; upkeep 831814459.394783; owner earnings 303985540.605217. Growth capex / owner earnings = 0.13548519618143362.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); Incremental return on capital 0.19055470742815545, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); Dividend observations: [[2016,47000000],[2017,62000000],[2018,73000000],[2019,90000000],[2020,104000000],[2021,87000000],[2022,143000000],[2023,187000000],[2024,248000000],[2025,369000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RHM.XETRA SharesStats.PercentInsiders = 1.649 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 22.8% yearly over ten years; actual growth was 5.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:53.331Z); Ten-year compound average after fade. Initial solved rate 0.31970625276281084. Price 1026; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.7705695807426274 → FY2025 6.51649868603167. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 63.11 per share

- 2016-11: EUR 67.30 per share

- 2016-12: EUR 63.90 per share

- 2017-01: EUR 70.84 per share

- 2017-02: EUR 72.12 per share

- 2017-03: EUR 78.63 per share

- 2017-04: EUR 84.25 per share

- 2017-05: EUR 85.43 per share

- 2017-06: EUR 83.12 per share

- 2017-07: EUR 84.40 per share

- 2017-08: EUR 85.86 per share

- 2017-09: EUR 95.36 per share

- 2017-10: EUR 101.25 per share

- 2017-11: EUR 106.90 per share

- 2017-12: EUR 105.85 per share

- 2018-01: EUR 113.90 per share

- 2018-02: EUR 109.00 per share

- 2018-03: EUR 115.35 per share

- 2018-04: EUR 108.65 per share

- 2018-05: EUR 109.10 per share

- 2018-06: EUR 94.56 per share

- 2018-07: EUR 103.30 per share

- 2018-08: EUR 93.92 per share

- 2018-09: EUR 90.06 per share

- 2018-10: EUR 76.54 per share

- 2018-11: EUR 81.80 per share

- 2018-12: EUR 77.16 per share

- 2019-01: EUR 90.58 per share

- 2019-02: EUR 94.04 per share

- 2019-03: EUR 92.88 per share

- 2019-04: EUR 102.30 per share

- 2019-05: EUR 95.30 per share

- 2019-06: EUR 107.65 per share

- 2019-07: EUR 103.40 per share

- 2019-08: EUR 107.30 per share

- 2019-09: EUR 116.05 per share

- 2019-10: EUR 107.85 per share

- 2019-11: EUR 96.64 per share

- 2019-12: EUR 102.40 per share

- 2020-01: EUR 96.72 per share

- 2020-02: EUR 82.32 per share

- 2020-03: EUR 64.06 per share

- 2020-04: EUR 61.82 per share

- 2020-05: EUR 72.96 per share

- 2020-06: EUR 77.20 per share

- 2020-07: EUR 80.24 per share

- 2020-08: EUR 77.54 per share

- 2020-09: EUR 76.76 per share

- 2020-10: EUR 62.70 per share

- 2020-11: EUR 74.56 per share

- 2020-12: EUR 86.58 per share

- 2021-01: EUR 87.34 per share

- 2021-02: EUR 82.62 per share

- 2021-03: EUR 86.40 per share

- 2021-04: EUR 86.70 per share

- 2021-05: EUR 84.90 per share

- 2021-06: EUR 83.30 per share

- 2021-07: EUR 80.96 per share

- 2021-08: EUR 82.84 per share

- 2021-09: EUR 84.78 per share

- 2021-10: EUR 83.84 per share

- 2021-11: EUR 78.62 per share

- 2021-12: EUR 83.06 per share

- 2022-01: EUR 92.10 per share

- 2022-02: EUR 133.60 per share

- 2022-03: EUR 192.10 per share

- 2022-04: EUR 214.80 per share

- 2022-05: EUR 188.30 per share

- 2022-06: EUR 220.30 per share

- 2022-07: EUR 178.85 per share

- 2022-08: EUR 158.40 per share

- 2022-09: EUR 158.20 per share

- 2022-10: EUR 164.50 per share

- 2022-11: EUR 194.40 per share

- 2022-12: EUR 186.05 per share

- 2023-01: EUR 214.00 per share

- 2023-02: EUR 240.60 per share

- 2023-03: EUR 273.60 per share

- 2023-04: EUR 265.50 per share

- 2023-05: EUR 236.40 per share

- 2023-06: EUR 250.80 per share

- 2023-07: EUR 257.40 per share

- 2023-08: EUR 251.30 per share

- 2023-09: EUR 243.90 per share

- 2023-10: EUR 270.40 per share

- 2023-11: EUR 276.00 per share

- 2023-12: EUR 287.00 per share

- 2024-01: EUR 324.80 per share

- 2024-02: EUR 424.00 per share

- 2024-03: EUR 521.00 per share

- 2024-04: EUR 517.20 per share

- 2024-05: EUR 527.80 per share

- 2024-06: EUR 475.70 per share

- 2024-07: EUR 503.80 per share

- 2024-08: EUR 542.00 per share

- 2024-09: EUR 486.40 per share

- 2024-10: EUR 473.20 per share

- 2024-11: EUR 622.40 per share

- 2024-12: EUR 614.60 per share

- 2025-01: EUR 755.40 per share

- 2025-02: EUR 1,006.50 per share

- 2025-03: EUR 1,319.00 per share

- 2025-04: EUR 1,499.00 per share

- 2025-05: EUR 1,885.00 per share

- 2025-06: EUR 1,797.00 per share

- 2025-07: EUR 1,735.50 per share

- 2025-08: EUR 1,689.50 per share

- 2025-09: EUR 1,984.50 per share

- 2025-10: EUR 1,701.50 per share

- 2025-11: EUR 1,480.50 per share

- 2025-12: EUR 1,561.00 per share

- 2026-01: EUR 1,781.50 per share

- 2026-02: EUR 1,663.50 per share

- 2026-03: EUR 1,444.50 per share

- 2026-04: EUR 1,355.80 per share

- 2026-05: EUR 1,293.40 per share

- 2026-06: EUR 990.50 per share

- 2026-07: EUR 1,140.00 per share

- 2026-08: EUR 1,110.80 per share

- 2026-09: EUR 956.40 per share

- 2026-10: EUR 953.40 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 59.29 per share, central EUR 65.14 per share, high EUR 72.92 per share

- FY2017: low EUR 62.44 per share, central EUR 68.54 per share, high EUR 76.66 per share

- FY2018: low EUR 75.48 per share, central EUR 87.60 per share, high EUR 99.30 per share

- FY2019: low EUR 86.73 per share, central EUR 106.18 per share, high EUR 120.86 per share

- FY2020: low EUR 77.66 per share, central EUR 85.42 per share, high EUR 95.75 per share

- FY2021: low EUR 79.97 per share, central EUR 87.47 per share, high EUR 97.45 per share

- FY2022: low EUR 92.44 per share, central EUR 107.94 per share, high EUR 123.54 per share

- FY2023: low EUR 100.45 per share, central EUR 117.60 per share, high EUR 134.24 per share

- FY2024: low EUR 185.49 per share, central EUR 230.12 per share, high EUR 265.15 per share

- FY2025: low EUR 202.76 per share, central EUR 251.79 per share, high EUR 289.42 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:41.904Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.