Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Rheinmetall AG (RHM.DE)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$346.97 - $762.99$498.89
Multi-Stage$258.93 - $282.37$270.44
Blended Fair Value$384.67
Current Price$1,797.00
Upside-78.59%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS22.47%32.38%5.344.033.081.872.241.941.571.341.010.26
YoY Growth--32.62%30.77%64.37%-16.35%15.56%23.29%17.74%31.91%291.67%-20.00%
Dividend Yield--0.41%0.76%1.13%0.98%2.59%3.03%1.64%1.16%1.29%0.37%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)822.00
(-) Cash Dividends Paid (M)369.00
(=) Cash Retained (M)453.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)164.40102.7561.65
Cash Retained (M)453.00453.00453.00
(-) Cash Required (M)-164.40-102.75-61.65
(=) Excess Retained (M)288.60350.25391.35
(/) Shares Outstanding (M)46.4146.4146.41
(=) Excess Retained per Share6.227.558.43
LTM Dividend per Share7.957.957.95
(+) Excess Retained per Share6.227.558.43
(=) Adjusted Dividend14.1715.5016.38
WACC / Discount Rate9.81%9.81%9.81%
Growth Rate5.50%6.50%7.50%
Fair Value$346.97$498.89$762.99
Upside / Downside-80.69%-72.24%-57.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)822.00875.43932.33992.931,057.481,126.211,160.00
Payout Ratio44.89%53.91%62.93%71.96%80.98%90.00%92.50%
Projected Dividends (M)369.00471.97586.76714.48856.321,013.591,073.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.81%9.81%9.81%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)425.77429.81433.84
Year 2 PV (M)477.52486.62495.80
Year 3 PV (M)524.56539.62554.96
Year 4 PV (M)567.17588.98611.41
Year 5 PV (M)605.62634.87665.25
PV of Terminal Value (M)9,416.839,871.6710,343.91
Equity Value (M)12,017.4712,551.5613,105.17
Shares Outstanding (M)46.4146.4146.41
Fair Value$258.93$270.44$282.37
Upside / Downside-85.59%-84.95%-84.29%

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