Rheinmetall is now the seventh value of the German Dax index, its market capitalization is 71 billion euros. She occupies the seventh place in the index after SAP, Siemens, Deutsche Telekom, Allianz, Airbus and Siemens Energy.
Rheinmetall AG is a German company based in Düsseldorf, operating mainly in two sectors: defense and automobile. In the defense field, which represents around 80 % of its sales, Rheinmetall is a European leader, manufacturing armored vehicles (such as the Leopard chariot or the Lynx infantry combat vehicle), artillery systems, ammunition (especially for tanks and artillery), air defense systems (Skyranger, Skynex) and electronic solutions for the digitalisation of armed forces (as the system system Tawan). It provides equipment to many countries, including Germany, NATO members and Ukraine.
The course/profits ratio of the action is 88, against 18 for the Dax index. The prospects for the group remain very good but it is not abnormal to observe a correction/consolidation phase after such a bullish rally in the space of a few months. The acceleration of discussions in recent days around the situation in Ukraine has also favored certain corrections on the values of the defense sector.
From a technical point of view, the current correction could lead to a return of the courses in the 1300/1400 euros zone, if the downward projection of the consolidation triangle is finalized. This area of 1300/1400 euros could then constitute an attractive entry point for medieval investors who were waiting for a course correction to enter at a better price on the value.
