Shares in Rheinmetall show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● The company shows low valuation levels, with an enterprise value at 0.75 times its sales.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 97.97 EUR
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 115.75.
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Surperformance is Buy on RHEINMETALL AG since 2024-02-09
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Rheinmetall AG specializes in the design, manufacture and marketing of equipment, components and solutions for the military and civilian industries. Net sales break down by family of products as follows:
- vehicle systems (35.1%): multi-purpose wheeled and tracked vehicles (tactical military vehicles, support vehicles, logistics vehicles and special vehicles);
- sensors and actuators (20.5%): actuators, exhaust gas recirculation systems, throttle valves, exhaust gas dampers for electric motors, solenoid valves, pumps, etc. used in thermal and fluid management applications in the mobility and industrial sectors;
- weapon and ammunition systems (19.5%): automatic cannons for land, air and sea vehicles, smooth-bore weapons, artillery systems, smart projectiles, high-energy lasers, etc.;
- electronic solutions (13%): sensors and networking systems, cyberspace protection solutions, air defense systems, radar systems, technical documentation solutions, integrated electronic systems, drones and automated ground robots, training and simulation solutions;
- engine components and systems (11.6%);
- other (0.3%).
At the end of 2022, the Group had 132 production sites worldwide.
Net sales are distributed geographically as follows: Germany (29.5%), Europe (35.7%), Asia and Middle East (16.3%), Americas (9%) and other (9.5%).