BN · rank #2 · 2026-07-20
RHM
XETRA · EUR · $52.39B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.86 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +33.9% |
| Forward net margin Consensus forward net margin. | +7.7% |
| Net margin TTM Trailing twelve month net margin. | +7.2% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.5% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.51 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 2.56× |
| Analyst upside Spread between the consensus 12m target and the current price. | +72.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +2% |
| Market cap (USD) | $52.39B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Rheinmetall is Germany's leading land-systems and ammunition manufacturer, generating ~€9.9B in FY2025 sales with a €60B+ order backlog concentrated in NATO government contracts for vehicles, artillery, and ammunition.
Rationale
The bottleneck_solver thesis is directly reinforced — Rheinmetall holds a structural, sole-supplier position in European artillery ammunition and armored vehicle production at a moment when NATO governments are contractually committed to closing capacity gaps, with a 0.51x fwd PEG and 72% analyst upside suggesting the market has not fully priced the multi-year backlog conversion.
Material risks
- 1European governments accelerating domestic or consortium-based ammunition production (e.g., via KNDS or new national facilities) could erode Rheinmetall's sole-source pricing power and compress the margin expansion embedded in the thesis.
- 2Execution risk on rapid capacity scaling — the 15.5% operating margin target assumes smooth ramp of new plants; cost overruns or delivery delays on large vehicle/ammunition contracts could trigger consensus estimate cuts despite the backlog headline.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.