RATIONAL AG (RAA.DE) Stock Fundamental Analysis
FRA:RAA - Deutsche Boerse Ag - DE0007010803 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to RAA. RAA was compared to 104 industry peers in the Machinery industry. RAA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RAA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RAA had positive earnings in the past year.
RAA had a positive operating cash flow in the past year.
In the past 5 years RAA has always been profitable.
Each year in the past 5 years RAA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.22%, RAA belongs to the top of the industry, outperforming 99.04% of the companies in the same industry.
With an excellent Return On Equity value of 30.88%, RAA belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
The Return On Invested Capital of RAA (28.81%) is better than 98.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RAA is significantly above the industry average of 8.43%.
The 3 year average ROIC (24.29%) for RAA is below the current ROIC(28.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.22% | ||
| ROE | 30.88% | ||
| ROIC | 28.81% |
ROA(3y)19.58%
ROA(5y)19.05%
ROE(3y)25.72%
ROE(5y)25.06%
ROIC(3y)24.29%
ROIC(5y)23.9%
1.3 Margins
The Profit Margin of RAA (20.21%) 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 25.82% is amongst the best of the industry. RAA outperforms 98.08% of its industry peers.
RAA's Operating Margin has been stable in the last couple of years.
RAA has a Gross Margin of 58.52%. This is amongst the best in the industry. RAA outperforms 85.58% of its industry peers.
RAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.82% | ||
| PM (TTM) | 20.21% | ||
| GM | 58.52% |
OM growth 3Y11.91%
OM growth 5Y-0.98%
PM growth 3Y15.84%
PM growth 5Y-1.07%
GM growth 3Y0.77%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RAA is creating value.
The number of shares outstanding for RAA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RAA has about the same amount of shares outstanding.
The debt/assets ratio for RAA is higher compared to a year ago.
2.2 Solvency
RAA has an Altman-Z score of 26.08. This indicates that RAA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 26.08, RAA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of RAA is 0.08, which is an excellent value as it means it would take RAA, only 0.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RAA (0.08) is better than 98.08% of its industry peers.
RAA has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
RAA has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. RAA outperforms 94.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 26.08 |
ROIC/WACC4.09
WACC7.04%
2.3 Liquidity
RAA has a Current Ratio of 3.58. This indicates that RAA is financially healthy and has no problem in meeting its short term obligations.
RAA has a better Current ratio (3.58) than 93.27% of its industry peers.
A Quick Ratio of 3.05 indicates that RAA has no problem at all paying its short term obligations.
RAA has a better Quick ratio (3.05) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.58 | ||
| Quick Ratio | 3.05 |
3. Growth
3.1 Past
RAA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.62%.
Measured over the past 5 years, RAA shows a small growth in Earnings Per Share. The EPS has been growing by 6.52% on average per year.
RAA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.98%.
The Revenue has been growing slightly by 7.68% on average over the past years.
EPS 1Y (TTM)7.62%
EPS 3Y39.27%
EPS 5Y6.52%
EPS Q2Q%17.83%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y20.12%
Revenue growth 5Y7.68%
Sales Q2Q%8.05%
3.2 Future
Based on estimates for the next years, RAA will show a small growth in Earnings Per Share. The EPS will grow by 6.66% on average per year.
The Revenue is expected to grow by 6.40% on average over the next years.
EPS Next Y12.91%
EPS Next 2Y10.08%
EPS Next 3Y9.72%
EPS Next 5Y6.66%
Revenue Next Year6.27%
Revenue Next 2Y6.96%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.75, RAA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RAA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RAA to the average of the S&P500 Index (28.81), we can say RAA is valued slightly more expensively.
A Price/Forward Earnings ratio of 34.07 indicates a quite expensive valuation of RAA.
Based on the Price/Forward Earnings ratio, RAA is valued a bit more expensive than the industry average as 75.96% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RAA to the average of the S&P500 Index (21.91), we can say RAA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.75 | ||
| Fwd PE | 34.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RAA is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, RAA is valued a bit more expensive than the industry average as 60.58% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.05 | ||
| EV/EBITDA | 25.56 |
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)2.92
PEG (5Y)5.79
EPS Next 2Y10.08%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, RAA has a reasonable but not impressive dividend return.
RAA's Dividend Yield is comparable with the industry average which is at 3.03.
Compared to the average S&P500 Dividend Yield of 2.39, RAA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of RAA has a limited annual growth rate of 4.18%.
Dividend Growth(5Y)4.18%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
65.03% of the earnings are spent on dividend by RAA. This is not a sustainable payout ratio.
RAA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.03%
EPS Next 2Y10.08%
EPS Next 3Y9.72%
FRA:RAA (3/27/2025, 7:00:00 PM)
784
-40 (-4.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners28.55%
Inst Owner ChangeN/A
Ins Owners23.66%
Ins Owner ChangeN/A
Market Cap8.91B
Analysts55.38
Price Target853.08 (8.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend13.5
Dividend Growth(5Y)4.18%
DP65.03%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.67%
Min EPS beat(2)4.9%
Max EPS beat(2)6.43%
EPS beat(4)3
Avg EPS beat(4)4.05%
Min EPS beat(4)-2.41%
Max EPS beat(4)7.26%
EPS beat(8)7
Avg EPS beat(8)5.8%
EPS beat(12)10
Avg EPS beat(12)6.8%
EPS beat(16)14
Avg EPS beat(16)8.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)2.14%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)0%
PT rev (3m)1.3%
EPS NQ rev (1m)2.48%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.75 | ||
| Fwd PE | 34.07 | ||
| P/S | 7.63 | ||
| P/FCF | 38.05 | ||
| P/OCF | 33.31 | ||
| P/B | 11.66 | ||
| P/tB | 11.97 | ||
| EV/EBITDA | 25.56 |
EPS(TTM)20.77
EY2.65%
EPS(NY)23.01
Fwd EY2.94%
FCF(TTM)20.61
FCFY2.63%
OCF(TTM)23.53
OCFY3%
SpS102.75
BVpS67.24
TBVpS65.49
PEG (NY)2.92
PEG (5Y)5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.22% | ||
| ROE | 30.88% | ||
| ROCE | 37.4% | ||
| ROIC | 28.81% | ||
| ROICexc | 62.71% | ||
| ROICexgc | 66.26% | ||
| OM | 25.82% | ||
| PM (TTM) | 20.21% | ||
| GM | 58.52% | ||
| FCFM | 20.05% |
ROA(3y)19.58%
ROA(5y)19.05%
ROE(3y)25.72%
ROE(5y)25.06%
ROIC(3y)24.29%
ROIC(5y)23.9%
ROICexc(3y)48.06%
ROICexc(5y)46.93%
ROICexgc(3y)50.22%
ROICexgc(5y)48.68%
ROCE(3y)31.53%
ROCE(5y)31.02%
ROICexcg growth 3Y27.13%
ROICexcg growth 5Y-2.51%
ROICexc growth 3Y25.64%
ROICexc growth 5Y-2.94%
OM growth 3Y11.91%
OM growth 5Y-0.98%
PM growth 3Y15.84%
PM growth 5Y-1.07%
GM growth 3Y0.77%
GM growth 5Y-0.69%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 92.43% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 215.77 | ||
| Cash Conversion | 79.24% | ||
| Profit Quality | 99.26% | ||
| Current Ratio | 3.58 | ||
| Quick Ratio | 3.05 | ||
| Altman-Z | 26.08 |
F-Score5
WACC7.04%
ROIC/WACC4.09
Cap/Depr(3y)103.87%
Cap/Depr(5y)117.7%
Cap/Sales(3y)3.34%
Cap/Sales(5y)4%
Profit Quality(3y)96.04%
Profit Quality(5y)90.84%
High Growth Momentum
Growth
EPS 1Y (TTM)7.62%
EPS 3Y39.27%
EPS 5Y6.52%
EPS Q2Q%17.83%
EPS Next Y12.91%
EPS Next 2Y10.08%
EPS Next 3Y9.72%
EPS Next 5Y6.66%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y20.12%
Revenue growth 5Y7.68%
Sales Q2Q%8.05%
Revenue Next Year6.27%
Revenue Next 2Y6.96%
Revenue Next 3Y7.31%
Revenue Next 5Y6.4%
EBIT growth 1Y9.3%
EBIT growth 3Y34.43%
EBIT growth 5Y6.62%
EBIT Next Year25.04%
EBIT Next 3Y13.9%
EBIT Next 5Y10.1%
FCF growth 1Y123.28%
FCF growth 3Y55.68%
FCF growth 5Y17.91%
OCF growth 1Y89.04%
OCF growth 3Y40.73%
OCF growth 5Y12.35%