- Rheinmetall has increased its full-year sales forecast, now expecting growth between 30% and 35%. Previously, the growth expectation was between 25% and 30%.
- The company aims for an operating margin between 18.5% and 19%. Earlier estimates were around 15.5%, with an analyst estimate of 16.4%.
- There is a positive outlook for the operating free cash flow from continuing operations, which is anticipated to surpass the previously expected cash conversion rate of 40% for the current reporting year.
- In terms of stock recommendations, there are currently 25 buys, 3 holds, and no sell recommendations for Rheinmetall.
Rheinmetall AG on Smartkarma
According to analyst coverage on Smartkarma by Baptista Research, Rheinmetall AG‘s latest quarterly performance reflects a mix of advancement and hurdles. The company showcased significant growth, particularly in the defense sector, with sales up by 33% to EUR 1.795 billion. This surge led to an impressive operational margin of 11.5%. However, Rheinmetall’s civilian business segment faced challenges, struggling to achieve the same level of profitability.
The initiation of coverage report by Baptista Research highlights a pivotal development for Rheinmetall AG, noting a transformative partnership with Lockheed that could unlock a €5 billion opportunity. This bullish outlook underscores the potential for growth and expansion in the company’s future prospects, especially within the defense industry. The analysis provides valuable insights into Rheinmetall’s trajectory, balancing both the positive momentum in defense with the need for strategic improvements in other business segments.
A look at Rheinmetall AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
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 seems to have a promising long-term outlook. The company scored moderately on Value and Dividend factors, indicating stable financial standing. With a strong Growth score, Rheinmetall AG is likely on a path for expansion and development in the future. Additionally, the company showed decent Resilience and Momentum scores, suggesting it can withstand market fluctuations and maintain steady performance. Rheinmetall AG‘s diverse portfolio in automotive, electronics, defense, and engineering sectors positions it well for growth and sustainability in the coming years.
Rheinmetall AG, a prominent automotive, electronics, defense, and engineering group, is at an exciting juncture with its favorable Smartkarma Smart Scores. The company’s focus on producing essential automotive components, offering aftermarket services, and its presence in defense technology sets a solid foundation for future success. With a solid Growth score and balanced performance across Value, Dividend, Resilience, and Momentum factors, Rheinmetall AG appears well-equipped to navigate challenges and capitalize on opportunities in the market.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
