GermanySep. 28, 2025 10:40 AM ETRheinmetall AG (RNMBY) Stock, RNMBF StockRNMBY, RNMBFMAK Invest4 FollowersEuropean Union’s plans to increase defense spending to 5% of GDP by 2035 are driving the bullish rally in Rheinmetall AG stock.Recent inauguration of an ammunition factory and focus on Unmanned Aerial Vehicles (UAVs) show the company’s focus on growth.The company has shown impressive topline growth, backed by margins higher than industry average. However, the market has not yet priced in deteriorating cash flow position that resulted from the inventory surplus.The stock is up 327% in a year and at this point it seems to have run ahead of its fundamentals. I rate it as a hold.Markus Volk/iStock Editorial via Getty ImagesUp until the beginning of the Russia-Ukraine war in 2022, Rheinmetall AG (OTCPK:RNMBY, OTCPK:RNMBF) only went up 2.5x in 10 years. Since then, it has gone up 22x in just over three and aThis article was written byMAK Invest4 FollowersI am a Professional Investor with decade long experience of investing in public markets within the UK and Asia. After starting my career in the Asset Management industry, I have been involved in markets as an investor, portfolio consultant and academic writer. I possess substantial experience of executing portfolios with exposure to individual companies, ETFs and investment trust across a range of sectors. I am currently pursuing the prestigious CFA Charter. Previously I did MSc in Banking & Finance at Newcastle University, where I was the academic award winner of my batch. My dissertation topic at Newcastle was about movements in share prices of companies with varying payout frequencies. My research was nominated by my supervisor for the Centre des Professions Financières 32nd Intl. Competition in Paris. I also hold an MBA with concentration in Finance, which involved a thesis on stock market volatility caused by investor sentiment. On this platform, I will predominantly focus on aerospace & defense and healthcare sectors, and feel excited to share my expertise.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments