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 102 industry peers in the Machinery industry. RAA gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, RAA is valued expensive at the moment.
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.
RAA had positive earnings in each of the past 5 years.
RAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RAA has a Return On Assets of 22.65%. This is amongst the best in the industry. RAA outperforms 98.04% of its industry peers.
The Return On Equity of RAA (29.24%) is better than 94.12% of its industry peers.
RAA has a Return On Invested Capital of 26.51%. This is amongst the best in the industry. RAA outperforms 98.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RAA is significantly above the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.65% | ||
| ROE | 29.24% | ||
| ROIC | 26.51% |
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
With an excellent Profit Margin value of 20.99%, RAA belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
RAA's Profit Margin has been stable in the last couple of years.
RAA has a Operating Margin of 26.33%. This is amongst the best in the industry. RAA outperforms 98.04% of its industry peers.
RAA's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.20%, RAA belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
RAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.33% | ||
| PM (TTM) | 20.99% | ||
| GM | 59.2% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RAA is creating value.
Compared to 1 year ago, RAA has about the same amount of shares outstanding.
The number of shares outstanding for RAA remains at a similar level compared to 5 years ago.
Compared to 1 year ago, RAA has an improved debt to assets ratio.
2.2 Solvency
RAA has an Altman-Z score of 23.93. This indicates that RAA is financially healthy and has little risk of bankruptcy at the moment.
RAA has a better Altman-Z score (23.93) than 100.00% of its industry peers.
RAA has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
RAA has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. RAA outperforms 99.02% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that RAA is not too dependend on debt financing.
The Debt to Equity ratio of RAA (0.02) is better than 95.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 23.93 |
ROIC/WACC3.6
WACC7.37%
2.3 Liquidity
A Current Ratio of 3.99 indicates that RAA has no problem at all paying its short term obligations.
RAA has a Current ratio of 3.99. This is amongst the best in the industry. RAA outperforms 95.10% of its industry peers.
A Quick Ratio of 3.46 indicates that RAA has no problem at all paying its short term obligations.
RAA has a better Quick ratio (3.46) than 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
RAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.01%, which is quite good.
RAA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.89% yearly.
RAA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.01%.
Measured over the past years, RAA shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)16.01%
EPS 3Y26.47%
EPS 5Y7.89%
EPS Q2Q%24.95%
Revenue 1Y (TTM)6.01%
Revenue growth 3Y15.25%
Revenue growth 5Y7.19%
Sales Q2Q%8.64%
3.2 Future
The Earnings Per Share is expected to grow by 4.90% on average over the next years.
RAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.77% yearly.
EPS Next Y3.88%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
EPS Next 5Y4.9%
Revenue Next Year7.65%
Revenue Next 2Y7.84%
Revenue Next 3Y7.94%
Revenue Next 5Y7.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
RAA is valuated quite expensively with a Price/Earnings ratio of 33.59.
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 (28.79), we can say RAA is valued inline with the index average.
With a Price/Forward Earnings ratio of 32.34, RAA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RAA is valued a bit more expensive than 66.67% of the companies in the same industry.
RAA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 32.34 |
4.2 Price Multiples
RAA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RAA is more expensive than 72.55% of the companies in the same industry.
RAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.46 | ||
| EV/EBITDA | 21.55 |
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.
The excellent profitability rating of RAA may justify a higher PE ratio.
PEG (NY)8.67
PEG (5Y)4.26
EPS Next 2Y6.11%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
RAA has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.71, RAA pays a bit more dividend than its industry peers.
RAA's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
RAA pays out 61.27% of its income as dividend. 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.
DP61.27%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
FRA:RAA (4/25/2025, 7:00:00 PM)
740
+1.5 (+0.2%)
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 Cap8.41B
Analysts56.92
Price Target847.11 (14.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend13.5
Dividend Growth(5Y)7.28%
DP61.27%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.98%
Min EPS beat(2)4.9%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)7.91%
Min EPS beat(4)4.9%
Max EPS beat(4)13.06%
EPS beat(8)7
Avg EPS beat(8)6.12%
EPS beat(12)11
Avg EPS beat(12)8.77%
EPS beat(16)14
Avg EPS beat(16)9.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)0.48%
Revenue beat(8)4
Avg Revenue beat(8)0.22%
Revenue beat(12)8
Avg Revenue beat(12)1.2%
Revenue beat(16)11
Avg Revenue beat(16)1.48%
PT rev (1m)-0.7%
PT rev (3m)0.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.55%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 32.34 | ||
| P/S | 7.05 | ||
| P/FCF | 33.46 | ||
| P/OCF | 29.72 | ||
| P/B | 9.82 | ||
| P/tB | 10.04 | ||
| EV/EBITDA | 21.55 |
EPS(TTM)22.03
EY2.98%
EPS(NY)22.88
Fwd EY3.09%
FCF(TTM)22.11
FCFY2.99%
OCF(TTM)24.9
OCFY3.36%
SpS104.97
BVpS75.37
TBVpS73.69
PEG (NY)8.67
PEG (5Y)4.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.65% | ||
| ROE | 29.24% | ||
| ROCE | 34.83% | ||
| ROIC | 26.51% | ||
| ROICexc | 59.77% | ||
| ROICexgc | 62.75% | ||
| OM | 26.33% | ||
| PM (TTM) | 20.99% | ||
| GM | 59.2% | ||
| FCFM | 21.07% |
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 Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 84.55% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 226.2 | ||
| Cash Conversion | 80.51% | ||
| Profit Quality | 100.37% | ||
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z | 23.93 |
F-Score7
WACC7.37%
ROIC/WACC3.6
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)16.01%
EPS 3Y26.47%
EPS 5Y7.89%
EPS Q2Q%24.95%
EPS Next Y3.88%
EPS Next 2Y6.11%
EPS Next 3Y6.9%
EPS Next 5Y4.9%
Revenue 1Y (TTM)6.01%
Revenue growth 3Y15.25%
Revenue growth 5Y7.19%
Sales Q2Q%8.64%
Revenue Next Year7.65%
Revenue Next 2Y7.84%
Revenue Next 3Y7.94%
Revenue Next 5Y7.77%
EBIT growth 1Y13.43%
EBIT growth 3Y26.93%
EBIT growth 5Y7.88%
EBIT Next Year18.47%
EBIT Next 3Y11.44%
EBIT Next 5Y9.05%
FCF growth 1Y12.4%
FCF growth 3Y19.9%
FCF growth 5Y9.74%
OCF growth 1Y9.57%
OCF growth 3Y18.13%
OCF growth 5Y7.34%