RATIONAL AG (RAA.DE) Stock Fundamental Analysis
FRA:RAA - Deutsche Boerse Ag - DE0007010803 - Common Stock - Currency: EUR
RAA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 104 industry peers in the Machinery industry. RAA gets an excellent profitability rating and is at the same time showing great financial health properties. RAA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RAA had positive earnings in the past year.
In the past year RAA had a positive cash flow from operations.
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
With an excellent Return On Assets value of 23.22%, RAA belongs to the best of the industry, outperforming 99.04% of the companies in the same industry.
RAA's Return On Equity of 30.88% is amongst the best of the industry. RAA outperforms 95.19% of its industry peers.
RAA's Return On Invested Capital of 28.81% is amongst the best of the industry. RAA outperforms 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 8.40%.
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
RAA has a better Profit Margin (20.21%) than 98.08% of its industry peers.
RAA's Profit Margin has been stable in the last couple of years.
RAA has a better Operating Margin (25.82%) than 98.08% of its industry peers.
In the last couple of years the Operating Margin of RAA has remained more or less at the same level.
With an excellent Gross Margin value of 58.52%, RAA belongs to the best of the industry, outperforming 86.54% 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 | 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.
RAA has about the same amout of shares outstanding than it did 1 year ago.
RAA has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, RAA has a worse debt to assets ratio.
2.2 Solvency
RAA has an Altman-Z score of 26.46. This indicates that RAA is financially healthy and has little risk of bankruptcy at the moment.
RAA's Altman-Z score of 26.46 is amongst the best of the industry. RAA outperforms 100.00% of its industry peers.
RAA has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
RAA has a better Debt to FCF ratio (0.08) 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.
Looking at the Debt to Equity ratio, with a value of 0.02, RAA belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 26.46 |
ROIC/WACC4.05
WACC7.12%
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's Current ratio of 3.58 is amongst the best of the industry. RAA outperforms 94.23% 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%.
RAA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.52% yearly.
Looking at the last year, RAA shows a small growth in Revenue. The Revenue has grown by 3.98% in the last year.
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
RAA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.43% yearly.
Based on estimates for the next years, RAA will show a small growth in Revenue. The Revenue will grow by 7.47% on average per year.
EPS Next Y12.91%
EPS Next 2Y10.08%
EPS Next 3Y9.72%
EPS Next 5Y8.43%
Revenue Next Year6.27%
Revenue Next 2Y6.96%
Revenue Next 3Y7.31%
Revenue Next 5Y7.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 40.35 indicates a quite expensive valuation of RAA.
RAA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. RAA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 36.42, the valuation of RAA can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RAA indicates a slightly more expensive valuation: RAA is more expensive than 73.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RAA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 36.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RAA is valued a bit more expensive than the industry average as 74.04% of the companies are valued more cheaply.
RAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.67 | ||
| EV/EBITDA | 26.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)6.19
EPS Next 2Y10.08%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
RAA has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
RAA's Dividend Yield is comparable with the industry average which is at 2.63.
Compared to the average S&P500 Dividend Yield of 2.33, RAA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 (3/7/2025, 7:00:00 PM)
838
-45 (-5.1%)
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 Cap9.53B
Analysts55.38
Price Target853.08 (1.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)0.97%
PT rev (3m)1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)1.6%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 36.42 | ||
| P/S | 8.16 | ||
| P/FCF | 40.67 | ||
| P/OCF | 35.61 | ||
| P/B | 12.46 | ||
| P/tB | 12.8 | ||
| EV/EBITDA | 26.03 |
EPS(TTM)20.77
EY2.48%
EPS(NY)23.01
Fwd EY2.75%
FCF(TTM)20.61
FCFY2.46%
OCF(TTM)23.53
OCFY2.81%
SpS102.75
BVpS67.24
TBVpS65.49
PEG (NY)3.13
PEG (5Y)6.19
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 | 26.46 |
F-Score5
WACC7.12%
ROIC/WACC4.05
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 5Y8.43%
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 5Y7.47%
EBIT growth 1Y9.3%
EBIT growth 3Y34.43%
EBIT growth 5Y6.62%
EBIT Next Year25.04%
EBIT Next 3Y13.9%
EBIT Next 5Y11.85%
FCF growth 1Y123.28%
FCF growth 3Y55.68%
FCF growth 5Y17.91%
OCF growth 1Y89.04%
OCF growth 3Y40.73%
OCF growth 5Y12.35%