XTRA:RAA

Stock Analysis Report

Executive Summary

RATIONAL Aktiengesellschaft develops, produces, and sells professional cooking appliances for industrial kitchens.

Rewards

Earnings are forecast to grow 8.8% per year

Earnings grew by 14.9% over the past year

Pays a reliable dividend of 1.33%

Risk Analysis

No risks detected for RAA from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record and pays a dividend.


Similar Companies

Share Price & News

How has RATIONAL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

RAA

1.8%

DE Machinery

1.0%

DE Market


1 Year Return

40.5%

RAA

-2.9%

DE Machinery

15.7%

DE Market

Return vs Industry: RAA exceeded the German Machinery industry which returned -2.9% over the past year.

Return vs Market: RAA exceeded the German Market which returned 15.7% over the past year.


Shareholder returns

RAAIndustryMarket
7 Day1.6%1.8%1.0%
30 Day1.6%1.1%1.0%
90 Day6.7%2.5%6.7%
1 Year42.8%40.5%0.2%-2.9%19.3%15.7%
3 Year80.4%69.9%-6.6%-13.3%19.5%8.9%
5 Year205.7%176.9%21.2%7.4%36.9%18.3%

Price Volatility Vs. Market

How volatile is RATIONAL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RATIONAL undervalued compared to its fair value and its price relative to the market?

46.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAA (€715) is trading above our estimate of fair value (€359.47)

Significantly Below Fair Value: RAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAA is poor value based on its PE Ratio (47x) compared to the Machinery industry average (16.9x).

PE vs Market: RAA is poor value based on its PE Ratio (47x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: RAA is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: RAA is overvalued based on its PB Ratio (17.3x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is RATIONAL forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAA's forecast earnings growth (8.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: RAA's earnings (8.8% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: RAA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RAA's revenue (8.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: RAA's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAA's Return on Equity is forecast to be high in 3 years time (34.3%)


Next Steps

Past Performance

How has RATIONAL performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAA has high quality earnings.

Growing Profit Margin: RAA's current net profit margins (20.9%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: RAA's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: RAA's earnings growth over the past year (14.9%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: RAA earnings growth over the past year (14.9%) exceeded the Machinery industry -0.6%.


Return on Equity

High ROE: RAA's Return on Equity (36.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RATIONAL's financial position?


Financial Position Analysis

Short Term Liabilities: RAA's short term assets (€453.7M) exceed its short term liabilities (€144.0M).

Long Term Liabilities: RAA's short term assets (€453.7M) exceed its long term liabilities (€37.5M).


Debt to Equity History and Analysis

Debt Level: RAA's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: RAA's debt to equity ratio has reduced from 11.6% to 2% over the past 5 years.

Debt Coverage: RAA's debt is well covered by operating cash flow (1919.1%).

Interest Coverage: RAA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RAA has a high level of physical assets or inventory.

Debt Coverage by Assets: RAA's debt is covered by short term assets (assets are 48.6x debt).


Next Steps

Dividend

What is RATIONAL's current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: RAA's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: RAA's dividend (1.33%) is low compared to the top 25% of dividend payers in the German market (3.55%).


Stability and Growth of Payments

Stable Dividend: RAA's dividends per share have been stable in the past 10 years.

Growing Dividend: RAA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.4%), RAA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAA's dividends in 3 years are forecast to be covered by earnings (70.7% payout ratio).


Next Steps

Management

What is the CEO of RATIONAL's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Peter Stadelmann (54yo)

5.9yrs

Tenure

0

Dr. Peter Stadelmann, Dipl.-Volkswirt has been the Chairman of Executive Board at Rational AG since January 2014 and has been its the Chief Executive Officer since January 1, 2014. Dr. Stadelmann is respon ...


Management Age and Tenure

6.0yrs

Average Tenure

54yo

Average Age

Experienced Management: RAA's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

Experienced Board: RAA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Wiedemann (60yo)

    CTO & Member of Executive Board

    • Tenure: 20.3yrs
  • Markus Paschmann (53yo)

    Chief Sales & Marketing Officer and Member of Executive Board

    • Tenure: 6yrs
  • Stefan Arnold

    Head of Group Accounting & Investor Relations

    • Tenure: 0yrs
  • Peter Stadelmann (54yo)

    Chairman of Executive Board & CEO

    • Tenure: 5.9yrs

Board Members

  • Erich Baumgärtner (65yo)

    Member of Supervisory Board

    • Tenure: 2.9yrs
    • Compensation: €150.00k
  • Walter Kurtz

    Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €268.00k
  • Georg Sick

    Member of Supervisory Board

    • Tenure: 2.2yrs
    • Compensation: €150.00k
  • Hans Maerz

    Deputy Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €212.00k
  • Gerd Lintz

    Member of Supervisory Board

    • Tenure: 4.7yrs
    • Compensation: €150.00k
  • Werner Schwind

    Member of Supervisory Board

    • Tenure: 4.7yrs
    • Compensation: €150.00k
  • Johannes Würbser

    Member of the Supervisory Board

    • Tenure: 0.6yrs

Company Information

RATIONAL Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RATIONAL Aktiengesellschaft
  • Ticker: RAA
  • Exchange: XTRA
  • Founded: 1973
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €8.130b
  • Shares outstanding: 11.37m
  • Website: https://www.rational-online.com

Number of Employees


Location

  • RATIONAL Aktiengesellschaft
  • Siegfried Meister Strasse 1
  • Landsberg am Lech
  • Bavaria
  • 86899
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAADB (Deutsche Boerse AG)YesRegistered SharesDEEURMar 2000
RAAXTRA (XETRA Trading Platform)YesRegistered SharesDEEURMar 2000
0FRJLSE (London Stock Exchange)YesRegistered SharesGBEURMar 2000
RTLL.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDMar 2000
RAADBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURMar 2000
RAASWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMar 2000
RAAWBAG (Wiener Boerse AG)YesRegistered SharesATEURMar 2000
RAAETLX (Eurotlx)YesRegistered SharesITEURMar 2000
RATI.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDSep 2013

Biography

RATIONAL Aktiengesellschaft develops, produces, and sells professional cooking appliances for industrial kitchens. It operates in two segments, RATIONAL and FRIMA. The RATIONAL segment offers combi-steamer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:03
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.