Rheinmetall AGRNMBF +3.20%80 Return-on-Tangible-Equity is 23.18% as of Mar. 2026, which is 11% below its 10-year median of 26.05. GuruFocus rates RNMBF with a GF Score™ of 80/100 and a GF Value™ of $909.01 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 334 Aerospace & Defense companies, Rheinmetall AG ranks better than 82.93% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rheinmetall AG's annualized net income for the quarter that ended in Mar. 2026 was $513 Mil. Rheinmetall AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,214 Mil. Therefore, Rheinmetall AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.18%.
The historical rank and industry rank for Rheinmetall AG's Return-on-Tangible-Equity or its related term are showing as below:
RNMBF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.16 Med: 26.05 Max: 57.68
Current: 39.53
During the past 13 years, Rheinmetall AG's highest Return-on-Tangible-Equity was 57.68%. The lowest was -2.16%. And the median was 26.05%.
RNMBF's Return-on-Tangible-Equity is ranked better than 82.93% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs RNMBF: 39.53
Rheinmetall AG (OTCPK:RNMBF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rheinmetall AG Return-on-Tangible-Equity Related Terms
Rheinmetall AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rheinmetall AG's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RNMBF vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Rheinmetall AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rheinmetall AG Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rheinmetall AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rheinmetall AG's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.18% mean?
Rheinmetall AG (RNMBF) has a Return-on-Tangible-Equity of 23.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rheinmetall AG and its competitors. This is 11% below median its historical median of 26.05. According to the industry distribution chart, Rheinmetall AG ranks #57 out of 334 companies in the Aerospace & Defense industry, placing it in the top 17.1%.
Is Rheinmetall AG's Return-on-Tangible-Equity too high?
Rheinmetall AG's current Return-on-Tangible-Equity of 23.18% is 11% below median its 10-year median of 26.05. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Rheinmetall AG's value of 23.18% is 182.9% above this industry median. Based on the distribution chart, Rheinmetall AG ranks #57 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Rheinmetall AG has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rheinmetall AG's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rheinmetall AG ranks #57 out of 334 companies for Return-on-Tangible-Equity. This places Rheinmetall AG in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Rheinmetall AG's value of 23.18% is 182.9% above this benchmark. While the company's 10-year median is 26.05 vs. the industry median of 8.20, Rheinmetall AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rheinmetall AG's current Return-on-Tangible-Equity of 23.18% is 182.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rheinmetall AG and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rheinmetall AG's current Return-on-Tangible-Equity is 23.18%, which is 11% below median its own 10-year median of 26.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rheinmetall AG stock overvalued right now?
Based on GuruFocus' analysis, Rheinmetall AG (RNMBF) is currently considered Modestly Overvalued. The stock's GF Value™ is $909.01, compared to a current price of $1,109.00 — trading 22% above its estimated fair value. The current Return-on-Tangible-Equity is 23.18%, which is 11% below median its 10-year median of 26.05 and 182.9% above the Aerospace & Defense industry median of 8.20. Rheinmetall AG's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rheinmetall AG (RNMBF), the current Return-on-Tangible-Equity is 23.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rheinmetall AG (RNMBF) Overvalued in 2026?
Based on GuruFocus' analysis, Rheinmetall AG stock appears to be overvalued.
The current stock price of $1,109.00 is trading 22% above its estimated GF Value™ of $909.01.
GuruFocus considers Rheinmetall AG to be Modestly Overvalued.
Key valuation signals for RNMBF:
Return-on-Tangible-Equity: 23.18% (11% below median its 10-year median of 26.05)
GF Value™: $909.01 vs. price of $1,109.00 (22% above fair value)
Industry Position: 182.9% above the Aerospace & Defense median (#57 of 334)
No single metric tells the full story. See the RNMBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rheinmetall is an international group active in various markets with leading technological products and services. The sales focus is on the security technology and mobility segments. Since February 2021, the group structure has been made up of five divisions—vehicle systems, weapons and ammunition, electronic solutions, sensors and actuators, and materials and trade. The vehicle systems, weapons and ammunition, and electronic solutions divisions are among the defense and security industry's leading suppliers of innovative products to German and international defense forces. The sensors and actuators, and materials and trade divisions' core area of expertise is the reduction of emissions, pollutants, and fuel consumption.
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