RATIONAL AG (RAA.DE) Stock Fundamental Analysis
FRA:RAA - Deutsche Boerse Ag - DE0007010803 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to RAA. RAA was compared to 104 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making RAA a very profitable company, without any liquidiy or solvency issues. RAA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RAA was profitable.
In the past year RAA had a positive cash flow from operations.
Each year in the past 5 years RAA has been profitable.
RAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RAA (22.46%) is better than 98.08% of its industry peers.
RAA has a Return On Equity of 27.49%. This is amongst the best in the industry. RAA outperforms 90.38% of its industry peers.
With an excellent Return On Invested Capital value of 25.02%, RAA belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RAA is significantly above the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.46% | ||
| ROE | 27.49% | ||
| ROIC | 25.02% |
ROA(3y)21.65%
ROA(5y)18.53%
ROE(3y)28.28%
ROE(5y)24.06%
ROIC(3y)26.53%
ROIC(5y)22.8%
1.3 Margins
The Profit Margin of RAA (20.90%) is better than 98.08% of its industry peers.
RAA's Profit Margin has been stable in the last couple of years.
RAA's Operating Margin of 26.21% is amongst the best of the industry. RAA outperforms 97.12% of its industry peers.
RAA's Operating Margin has been stable in the last couple of years.
RAA's Gross Margin of 59.37% is amongst the best of the industry. RAA outperforms 82.69% of its industry peers.
RAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.21% | ||
| PM (TTM) | 20.9% | ||
| GM | 59.37% |
OM growth 3Y10.14%
OM growth 5Y0.65%
PM growth 3Y9.79%
PM growth 5Y0.63%
GM growth 3Y2.45%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RAA is creating value.
Compared to 1 year ago, RAA has about the same amount of shares outstanding.
Compared to 5 years ago, RAA has about the same amount of shares outstanding.
RAA has a better debt/assets ratio than last year.
2.2 Solvency
RAA has an Altman-Z score of 25.57. This indicates that RAA is financially healthy and has little risk of bankruptcy at the moment.
RAA has a Altman-Z score of 25.57. This is amongst the best in the industry. RAA outperforms 99.04% of its industry peers.
The Debt to FCF ratio of RAA is 0.14, which is an excellent value as it means it would take RAA, only 0.14 years of fcf income to pay off all of its debts.
RAA's Debt to FCF ratio of 0.14 is amongst the best of the industry. RAA outperforms 97.12% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that RAA is not too dependend on debt financing.
RAA has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. RAA outperforms 93.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 25.57 |
ROIC/WACC3.5
WACC7.14%
2.3 Liquidity
A Current Ratio of 5.19 indicates that RAA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.19, RAA belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
A Quick Ratio of 4.48 indicates that RAA has no problem at all paying its short term obligations.
RAA has a better Quick ratio (4.48) than 97.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 4.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.98% over the past year.
Measured over the past 5 years, RAA shows a small growth in Earnings Per Share. The EPS has been growing by 7.89% on average per year.
Looking at the last year, RAA shows a small growth in Revenue. The Revenue has grown by 6.42% in the last year.
The Revenue has been growing slightly by 7.19% on average over the past years.
EPS 1Y (TTM)13.98%
EPS 3Y26.47%
EPS 5Y7.89%
EPS Q2Q%1.21%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y15.25%
Revenue growth 5Y7.19%
Sales Q2Q%3.1%
3.2 Future
The Earnings Per Share is expected to grow by 4.74% on average over the next years.
Based on estimates for the next years, RAA will show a small growth in Revenue. The Revenue will grow by 7.03% on average per year.
EPS Next Y3.88%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
EPS Next 5Y4.74%
Revenue Next Year5.58%
Revenue Next 2Y6.3%
Revenue Next 3Y6.8%
Revenue Next 5Y7.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.65, the valuation of RAA can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RAA.
RAA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.41, the valuation of RAA can be described as expensive.
RAA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RAA is more expensive than 71.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RAA to the average of the S&P500 Index (35.28), we can say RAA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.65 | ||
| Fwd PE | 26.41 |
4.2 Price Multiples
71.15% of the companies in the same industry are cheaper than RAA, based on the Enterprise Value to EBITDA ratio.
RAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.37 | ||
| EV/EBITDA | 18.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RAA does not grow enough to justify the current Price/Earnings ratio.
RAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.65
PEG (5Y)3.76
EPS Next 2Y6.11%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, RAA has a reasonable but not impressive dividend return.
RAA's Dividend Yield is a higher than the industry average which is at 2.45.
Compared to an average S&P500 Dividend Yield of 2.40, RAA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of RAA grows each year by 7.28%, which is quite nice.
Dividend Growth(5Y)7.28%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
61.08% of the earnings are spent on dividend by RAA. This is not a sustainable payout ratio.
The dividend of RAA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.08%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
FRA:RAA (8/8/2025, 5:29:51 PM)
655
+2 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners29.63%
Inst Owner ChangeN/A
Ins Owners23.66%
Ins Owner ChangeN/A
Market Cap7.45B
Analysts55
Price Target798.55 (21.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend13.5
Dividend Growth(5Y)7.28%
DP61.08%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.31%
Min EPS beat(2)-4.44%
Max EPS beat(2)13.06%
EPS beat(4)3
Avg EPS beat(4)4.99%
Min EPS beat(4)-4.44%
Max EPS beat(4)13.06%
EPS beat(8)6
Avg EPS beat(8)4.53%
EPS beat(12)10
Avg EPS beat(12)6.41%
EPS beat(16)13
Avg EPS beat(16)8.35%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)0.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
Revenue beat(16)10
Avg Revenue beat(16)1.06%
PT rev (1m)-0.59%
PT rev (3m)-4.26%
EPS NQ rev (1m)2.37%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.65 | ||
| Fwd PE | 26.41 | ||
| P/S | 6.19 | ||
| P/FCF | 32.37 | ||
| P/OCF | 28.86 | ||
| P/B | 8.15 | ||
| P/tB | 8.31 | ||
| EV/EBITDA | 18.67 |
EPS(TTM)22.09
EY3.37%
EPS(NY)24.8
Fwd EY3.79%
FCF(TTM)20.23
FCFY3.09%
OCF(TTM)22.69
OCFY3.46%
SpS105.75
BVpS80.4
TBVpS78.84
PEG (NY)7.65
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.46% | ||
| ROE | 27.49% | ||
| ROCE | 32.88% | ||
| ROIC | 25.02% | ||
| ROICexc | 52.5% | ||
| ROICexgc | 54.61% | ||
| OM | 26.21% | ||
| PM (TTM) | 20.9% | ||
| GM | 59.37% | ||
| FCFM | 19.13% |
ROA(3y)21.65%
ROA(5y)18.53%
ROE(3y)28.28%
ROE(5y)24.06%
ROIC(3y)26.53%
ROIC(5y)22.8%
ROICexc(3y)53.5%
ROICexc(5y)45.48%
ROICexgc(3y)56.13%
ROICexgc(5y)47.4%
ROCE(3y)34.86%
ROCE(5y)29.96%
ROICexcg growth 3Y16.28%
ROICexcg growth 5Y0%
ROICexc growth 3Y15.5%
ROICexc growth 5Y-0.41%
OM growth 3Y10.14%
OM growth 5Y0.65%
PM growth 3Y9.79%
PM growth 5Y0.63%
GM growth 3Y2.45%
GM growth 5Y0.08%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 72.54% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 220.54 | ||
| Cash Conversion | 72.95% | ||
| Profit Quality | 91.55% | ||
| Current Ratio | 5.19 | ||
| Quick Ratio | 4.48 | ||
| Altman-Z | 25.57 |
F-Score7
WACC7.14%
ROIC/WACC3.5
Cap/Depr(3y)103.66%
Cap/Depr(5y)102.05%
Cap/Sales(3y)3.12%
Cap/Sales(5y)3.56%
Profit Quality(3y)90.46%
Profit Quality(5y)92.68%
High Growth Momentum
Growth
EPS 1Y (TTM)13.98%
EPS 3Y26.47%
EPS 5Y7.89%
EPS Q2Q%1.21%
EPS Next Y3.88%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
EPS Next 5Y4.74%
Revenue 1Y (TTM)6.42%
Revenue growth 3Y15.25%
Revenue growth 5Y7.19%
Sales Q2Q%3.1%
Revenue Next Year5.58%
Revenue Next 2Y6.3%
Revenue Next 3Y6.8%
Revenue Next 5Y7.03%
EBIT growth 1Y11.88%
EBIT growth 3Y26.93%
EBIT growth 5Y7.88%
EBIT Next Year18.24%
EBIT Next 3Y11.18%
EBIT Next 5Y10.27%
FCF growth 1Y28.07%
FCF growth 3Y19.9%
FCF growth 5Y9.74%
OCF growth 1Y20.05%
OCF growth 3Y18.13%
OCF growth 5Y7.34%