- Rheinmetall’s operating profit for the first half of the year was €475 million, an increase of 18% compared to the previous year. However, it fell short of the estimated €491.3 million.
- Sales reached €4.74 billion, marking a 24% rise from the previous year, yet it missed the estimated €4.89 billion.
- Vehicle Systems sales were €1.90 billion, under the expected €1.99 billion.
- Weapon and Ammunition sales totaled €1.32 billion, slightly below the estimate of €1.35 billion.
- Electronic Solutions sales surpassed expectations, reaching €944 million compared to the estimated €913.4 million.
- The company received 18 buy recommendations, 3 hold recommendations, and 1 sell recommendation from analysts.
Rheinmetall AG on Smartkarma
Analyst coverage of Rheinmetall AG on Smartkarma reveals a mix of positive and strategic insights. Baptista Research‘s initiation of coverage highlights a game-changing partnership with Lockheed that could unlock a €5 billion opportunity for the company. While Rheinmetall AG‘s recent quarterly performance in the defense sector showed significant growth with a 33% increase in sales and an impressive operational margin of 11.5%, their civilian business continues to face challenges in achieving similar profitability levels.
On the other hand, according to analyst Dimitris Ioannidis, Rheinmetall AG is on track for fast-entry into EURO STOXX50 in June 2025. Currently ranked 26th in Euro STOXX50, Rheinmetall AG‘s stock has surged approximately 65% in the past month, placing it close to the fast-entry threshold. If the company’s stock price increases by around 4% by the June 2025 review, it could secure fast-entry into EURO STOXX50. In the event of a failed fast-entry, Rheinmetall AG still has a high probability of inclusion at the September 2025 review, potentially replacing Kering as a key addition to EURO STOXX50.
A look at Rheinmetall AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Rheinmetall AG appears to have a promising long-term outlook. With a strong score in Growth and Momentum, the company is positioned well for future expansion and performance. The Growth score of 5 indicates that Rheinmetall AG has excellent potential for expanding its business and increasing its market share. Additionally, a Momentum score of 5 suggests that the company is experiencing positive trends and may continue to see upward momentum in the future.
Furthermore, Rheinmetall AG also scores relatively high in Resilience and Value, with scores of 4 and 2 respectively. These scores indicate that the company has a good level of resilience to economic fluctuations and that it may be currently undervalued in the market. While the Dividend score of 2 is not as high as the other scores, the overall outlook for Rheinmetall AG seems positive, especially considering its diverse business operations in automotive, electronics, defense, and engineering sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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