Rheinmetall logistics vehicle (Photo: Rheinmetall AG)
Düsseldorf – A upgrade cycle starts in Europe, and not only in this country investors see Rheinmetall AG as a key player. Trump’s departure from Ukraine and Europe has multiplied the stock market value. Today the DAX group publishes its report for the 4th quarter and the year as a whole.
The development is dizzying: the Rheinmetall course after Russia’s attack on Ukraine has gone up more than 10 times. Since Trump’s choice alone, the value has more than doubled. Yesterday at the end of the IPO, the paper noted at over 1,119 euros.
Results of the pre -quarter – stock of the stock market is behind
No doubt: The number of corporate figures has also increased at a brisk pace since the start of the war. Finally, sales rose In the 3rd quarter Almost 40 percent to around 2.45 billion euros, the profit even grew strongly, to 302 million euros. The return improved from 11.3 to 12.3 percent.
But the stock market hype still causes growth pain – and risks. Sales should increase much more to justify the course. In addition, it would need more factories, employees, machines. Orders could therefore go to competitors due to a lack of capacity.
Forecast of the company for 2024 – does the debt brake tip over?
The company must grow even more than previously thought, said too CEO Armin Papperger the Reuters agency with a view to geopolitics and Bundestag election. In the 2024 financial year Rheinmetall aims around 10 billion euros in sales, after around 7.2 billion euros in 2023.
The latest euphoria about the abolition of the German debt brake for the military could still end as a straw fire. Bundestag and Federal Council must “Financial policy change of regime historical dimensions” (Robin Winkler, chief economist of Deutsche Bank).
Europe starts reimbursement – orders and collaborations
Whether the bet is on Rheinmetall does not only depend on Germany. After Washington’s Ukraine turn and the loss of trust in US protection, armaments offensives start all over Europe: the EU wants to mobilize 800 billion, and Great Britain has also announced additional expenses.
Rheinmetall dances at many weddings: Almost every day, the Düsseldorf team announce new orders – here flight defense for Italy, there trucks for the Bundeswehr. In many countries, the group is linking cooperation, such as Leonardo (tank) or with Bohemia Interactive (simulations).
New factories for armaments goods-US business reorganized
New factories and locations are created everywhere. One is planned Artillery work in Lithuaniain the Ukraine If there is a maintenance location, a ammunition factory is under construction. In Germany, the group wants the works in Berlin and Neuss from civil products Convert to armaments production.
Despite the attraction in Europe – Rheinmetall also wants The USA business develop. The DAX group recently strengthened its US deposit opportunities with the takeover of the vehicle supplier LOC Performance and bundled under the umbrella company American Rheinmetall.
Rheinmetall: prospects for profit and sales
According to the average forecast of 2 analysts finanzen.net the Rheinmetall win per share in the 4th quarter of 2024 will be around 13.23 euros. The profit per share was around 3.11 euros in the 3rd quarter from July to September. In the previous year, the profit per share was around 7.45 euros.
Sales should increase in the 4th quarter. An average of 3.67 billion euros expect 5 analysts. That would be a clear plus compared to the previous year (around 2.56 billion euros) and the 3rd quarter of 2024 (around 2.45 billion). The Rheinmetall business year ends on December 31.
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