- Operating Profit: EU404 million, a 91% increase year over year, compared to the estimate of EU315.7 million.
- Total Sales: EU3.82 billion, a 33% increase year over year, beating the estimate of EU3.65 billion.
- Vehicle Systems Sales: EU1.30 billion, surpassing the estimate of EU1.21 billion.
- Weapon and Ammunition Sales: EU1.05 billion, exceeding the estimate of EU1 billion.
- Electronic Solutions Sales: EU647 million, a 28% increase year over year, above the estimate of EU612.8 million.
- Power Systems Sales: EU1.06 billion, slightly below the estimate of EU1.07 billion.
- Second Quarter Results: Power Systems sales of EU514.0 million, below the estimate of EU538.2 million.
- Year Forecast: Expected sales of around EU10 billion, versus an estimate of EU9.94 billion.
- Operating Margin: Predicted to be between 14% and 15%, compared to an estimate of 15%.
- Profit Contributors: Notable improvement due to Rheinmetall Expal Munitions in Spain, acquired last year.
- Weapons and Ammunition Demand: Higher ammunition deliveries, including artillery orders for Germany and Ukraine, boosted sales.
- CEO Expectation: Annual sales growth of around EU2 billion in the upcoming years, according to CEO Armin Papperger.
- Backlog Growth: Increased significantly by 62% from EU30 billion to EU48.6 billion compared to the previous year.
- Analyst Recommendations: 16 buys, 4 holds, 0 sells.
A look at Rheinmetall AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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 has a mixed long-term outlook. While the company scores high in Growth, indicating strong potential for expansion and development in the future, it rates lower in other areas such as Value and Dividend, suggesting that investors may not currently find the stock undervalued or attractive for income generation. The Resilience and Momentum scores fall somewhere in the middle, indicating moderate stability and market performance.
Rheinmetall AG, a diversified automotive, electronics, defense, and engineering group, focuses on producing a range of automotive components and offering aftermarket services. With a strong emphasis on Growth, the company seems poised for future expansion and innovation in its sector. However, investors may need to carefully consider the Value and Dividend aspects before making investment decisions, as these scores suggest a more cautious outlook in terms of stock valuation and income potential.
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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