Rheinmetall opportunity of 25% upsideRheinmetall dipped today due to concerns of the European "far-right" (half of them centrists lmao) wanting peace with Russia in the future. This doesn't change anything for Rheinmetall though.
Key facts:
- Earnings grew by 21.8% over the 2023.
- Earnings are forecast to grow 26.06% per year.
- Revenue expected to grow 40% this year.
- New deal with Continental Ag. to hire new employees to fulfill the demand.
- Fair value estimated at 1100-1200 EUR per share.
War scenarios:
- A new conflict means growth of 5% + for each arms dealer as seen many times.
- If the war in Ukraine continues, Rheinmetall gets more deals.
- If the war ends, European countries will need to replenish ammunition storages, which is expected to take up to 10-15 years.
Additionaly:
- Both Trump and Kennedy Jr. expressed how European NATO members should start to fulfill their obligations of 2% GDP budget for army if they want the US to protect them.
- Around 17-18 countries do not meet this obligation yet, most of them being customers of Rheinmetall already.
- The total combined deficit of these countries sits around 44 billion USD as of 2024.
Sources:
www.reuters.com
www.reuters.com
www.ft.com
simplywall.st