BN · rank #2 · 2026-07-21
RHM
XETRA · EUR · $52.59B (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. | +71.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +2% |
| Market cap (USD) | $52.59B |
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 Europe's dominant ammunition and defense logistics bottleneck solver, operating the continent's largest 155mm artillery plant and holding a €51.9 billion backlog across NATO and international customers.
Rationale
The bottleneck_solvers signal is directly reinforced by Rheinmetall's structural position as a sole-capable supplier scaling 155mm output 11x to ~1.1 million rounds by 2027, with multi-year government contracts providing the revenue visibility the strategy requires, and a 0.51 fwd-PEG against 34% revenue growth suggesting the market has not fully priced the ramp.
Material risks
- 1Customer internalization risk is real — if NATO members replicate Rheinmetall's artillery capacity domestically (as Germany already outpaces the US), the sole-supplier moat erodes and demand normalizes faster than the backlog implies.
- 2The F126 frigate cancellation demonstrates that sovereign budget reprioritization can abruptly void large committed orders, and any Ukraine ceasefire or demand normalization could trigger a sharp backlog revision given portfolio concentration in artillery and ammunition.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.