RHM
🌍 The shift towards a multipolar world and increased geopolitical tensions, particularly highlighted by the war in Ukraine, necessitates European rearmament, benefiting defense contractors.
🇪🇺 Rheinmetall is positioned as Europe’s largest defense company, specializing in crucial hardware like Leopard tanks, armored vehicles, air defense systems, and vital 155mm artillery ammunition, making it a key player in Europe’s strategic autonomy push.
📈 While the company has a bright future due to undeniable trends, its valuation has surged significantly (from PER 8 to PER 60), prompting caution and suggesting the price may have gotten ahead of itself despite strong fundamentals.
@Academiadeinversion:
“Clearly, it’s Rheinmetall, which is the largest defense company in Europe and which, by the way, has surpassed Volkswagen itself in market capitalization. In fact, Volkswagen now wants to lease the car factories it’s closing to Rheinmetall to make that conversion. In the case of Rheinmetall, why does it seem so interesting? Well, more than anything, it seems interesting because of the type of weaponry it manufactures. On one hand, Rheinmetall manufactures the Leopards, the famous tanks that all of Europe has sent to Ukraine. Also, other types of armored vehicles, the Puma, the Boxers, the Lynx, there are a lot. Artillery systems, air defense systems, and another thing that is super important and has proven super important in the war in Ukraine, which is the 155 mm artillery. In fact, Rheinmetall itself has bought the Spanish company Expal, thanks to which it has greatly increased its capacity to produce ammunition. So, well, as a possible beneficiary of this multipolar world and this growing independence of the different geopolitical blocs, I think the European defense industry, especially Rheinmetall, can be a great opportunity. I’ve been reducing it. Yes, yes, because, man, now I think there has been an explosion, right? Because everyone suddenly saw clearly what was going to happen with the European defense industry, and I think we’ve gone a bit overboard with the prices. Does this mean that Rheinmetall doesn’t have a bright future? Yes, it does because it’s an irreplaceable company today. It has competitive advantages and a position envied by everyone. But the thing is, it has gone from being at a PER of 8 to, I think the last time I looked, it was at a PER of 60. So it has a bright future ahead. Yes, but it’s what I mentioned before, that, wow, everything has a price.”
Watch the exact part of the video where @Academiadeinversion talks about Rheinmetall AG here:
Watch the video on YouTube
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