BN · rank #2 · 2026-07-22
RHM
XETRA · EUR · $52.83B (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. | 0.52 |
| 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. | +70.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +2% |
| Market cap (USD) | $52.83B |
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 leading defense manufacturer solving NATO's critical ammunition and logistics bottlenecks through rapid capacity expansion in 155mm artillery shells, military trucks, and digital training systems backed by a €51.9 billion order backlog.
Rationale
The bottleneck_solver signal is directly validated by Rheinmetall's structural position as Europe's largest artillery ammunition producer, with 155mm output scaling ~11x to 1.1 million rounds by 2027, multi-year government contracts providing revenue visibility, and a 0.52 forward PEG against 34% revenue growth implying the market is not fully pricing the ramp.
Material risks
- 1Customer demand normalization or internalisation — if Ukraine ceasefire or NATO members build sovereign ammunition capacity, Rheinmetall's sole-supplier pricing power and volume assumptions underpinning the €14–14.5 billion 2026 guidance could deteriorate faster than the backlog implies.
- 2Programme cancellation risk is already realized in the F126 frigate freeze, signaling that government budget reprioritization can abruptly remove assumed backlog, and Hungary/Lithuania plant ramp-ups remain exposed to geopolitical or export-control disruption.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.