RHM.DE Stock Today: January 31 Dutch Deal Targets 3.5% NATO Spend
Rheinmetall stock is in focus after the Netherlands set a path to raise defense spending to 2.8% of GDP by 2030 and 3.5% by 2035. Germany-listed RHM.DE traded at €1781.5, down €14.0 on light volume versus average. The plan signals multi‑year EU procurement demand that could support order visibility for prime contractors. We review today’s setup, the Dutch catalyst, valuation, and near‑term watch points for DE investors tracking EU defense stocks.
RHM.DE intraday: price, trend and liquidity
Rheinmetall stock last traded at €1781.5, down €14.0. Intraday range was 1760.0 to 1802.0, versus a year range of 688.0 to 2008.0. Volume was 189,844 against a 220,786 average, while OBV sits at -967,557. Bollinger upper band is 1808.78 and ATR is 65.12, highlighting elevated swings. Day momentum is mixed, with Change 1D at -0.77973.
RSI is 71.85 and CCI 168.09, both overbought, while ADX at 25.85 signals a strong trend. MACD at 41.21 with a 38.91 histogram confirms upside momentum. Price sits above the 50-day €1656.8 and 200-day €1728.32. Keltner upper is 1769.76. Rheinmetall stock riding the upper bands suggests limited room unless volume expands.
Dutch coalition plan and NATO 3.5% signal
The new Dutch accord outlines defense outlays rising to 2.8% of GDP by 2030 and 3.5% by 2035, indicating sustained procurement. That trajectory can extend EU order cycles across land, air, and air-defense programs, a structural tailwind for Rheinmetall stock. Key details are summarized by AD’s coverage of the coalition program source.
For German primes, the Netherlands defense budget path signals multi‑year demand visibility, not a one‑off spike. It supports planning for production, workforce, and sub‑supplier investments. EU defense stocks could benefit as allied budgets move above the NATO 3.5% GDP marker. NOS provides an accessible overview of the agreement source.
Fundamentals and valuation snapshot
Rheinmetall’s FY2024 showed revenue growth of 0.358835, operating income growth of 0.647541, and EPS growth of 0.281832. Net profit margin is 0.076378 with operating margin at 0.13557. Return on equity is 0.190401 and interest coverage 11.55814. These metrics frame a solid base for Rheinmetall stock as EU demand trends firm up over multiple years.
Valuation is rich: PE 94.66, price-to-sales 7.41231, and price-to-book 17.35322. Free cash flow yield is 0.001202 and dividend yield 0.454673%. Debt-to-equity is 0.52012 with a current ratio of 1.1351. Our Stock Grade is B+ with a BUY suggestion, while a separate 2026-01-30 company rating is B- with a Neutral stance.
Catalysts and risk for the weeks ahead
Next earnings are scheduled on 2026-03-11. Near-term, watch Bollinger upper 1808.78 and the prior high at 2008.0. Supports sit near the 200-day at €1728.32 and the 50-day at €1656.8. MFI at 71.61 and Williams %R at -11.44 flag stretched conditions. Rheinmetall stock may consolidate if momentum cools.
ATR at 65.12 implies wide intraday ranges, favoring staged entries and disciplined stops. Liquidity is adequate but volume is below average today. For longer horizons, focus on confirmed budget execution, booked orders, and cash conversion. Rheinmetall stock exposure can be sized with technical levels, while tracking EU tender flow and the Dutch plan’s milestones.
Final Thoughts
The Dutch coalition’s plan to lift defense outlays toward 3.5% of GDP by 2035 points to multi‑year procurement that can support backlogs for German suppliers. Rheinmetall stock trades in an overbought zone, with price near upper bands and momentum firm. Valuation is elevated, so execution and cash generation matter. We suggest a practical approach: track the Dutch budget path, watch German and EU tenders, monitor earnings on 2026-03-11, and use the 50-day and 200-day moving averages for risk control. If momentum pauses, pullbacks to support may offer better entries within a structurally supportive European defense cycle.
FAQs
Why does the Dutch plan matter for Rheinmetall?
A multi‑year path to 2.8% of GDP by 2030 and 3.5% by 2035 signals sustained procurement rather than one‑off spikes. That supports planning and potential orders across vehicles, ammunition, training, and air defense. It can improve revenue visibility for German primes and helps sentiment around Rheinmetall stock.
Is Rheinmetall stock overbought today?
Several signals suggest so. RSI is 71.85, CCI is 168.09, Stochastic %K is 89.93, and price is near the Bollinger upper band at 1808.78. With ATR at 65.12, swings can be wide. A consolidation phase would not be surprising if momentum cools or volume remains below average.
How expensive is Rheinmetall versus fundamentals?
Valuation is stretched with PE at 94.66, price-to-book at 17.35322, and price-to-sales at 7.41231. Free cash flow yield is 0.001202, while dividend yield is 0.454673%. Strong growth and margins help, but cash conversion and future orders are key to supporting the current multiple.
What key dates and levels should investors watch?
Watch earnings on 2026-03-11, the Bollinger upper at 1808.78, and the prior high at 2008.0. On downside, the 200-day at €1728.32 and 50-day at €1656.8 are important supports. These levels help manage entries and risk for positions in Rheinmetall stock.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
