Rational (RAA) AI Stock Analysis

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Rational

(LSE:RAA)

72Outperform

Rational's stock performance is underpinned by strong financial health, with consistent revenue growth, profitability, and a robust balance sheet. However, the technical analysis shows bearish momentum, and the high P/E ratio suggests concerns about valuation. The absence of recent earnings call data and corporate events limits additional insights. Overall, Rational is well-positioned financially, but caution is advised due to current technical trends and valuation concerns.

Positive Factors

Earnings

Rational reported a strong set of Q4 preliminary figures with revenue (€318.0m) 2% above and EBIT (€87.4m) 8% above consensus.

Financial Performance

Revenue increased by 6% y/y to €1,194m in FY24 driven by strong sales in iVario.

Profitability

Rational achieved a strong gross profit margin of 57.3% in the quarter, 29bps above our estimate, due to stabilising cost levels.

Negative Factors

Operating Expenses

Operating expenses may grow slightly faster than sales, leaving EBIT margins at around 26%.

Regional Performance

Sales in Asia were weaker, coming from a high base in FY23 with large one-off orders in China and Japan.

Research and Development

R&D had a negative impact on EBIT margins due to lower capitalisation of R&D costs in FY24.

Rational (RAA) vs. S&P 500 (SPY)

Market Cap

€8.66B

Dividend Yield1.77%

Average Volume (3M)15.26K

Price to Earnings (P/E)34.5

Beta (1Y)0.83

Revenue Growth6.42%

EPS Growth14.12%

CountryDE

Employees2,778

SectorIndustrials

Sector Strength83

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)5.00

Shares Outstanding11,370,000

10 Day Avg. Volume15,796

30 Day Avg. Volume15,259

Financial Highlights & Ratios

PEG Ratio9.90

Price to Book (P/B)12.57

Price to Sales (P/S)0.00

P/FCF Ratio40.08

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€798.75

Price Target Upside4.82% Upside

Rating ConsensusHold

Number of Analyst Covering13

Rational Business Overview & Revenue Model

Company DescriptionRATIONAL Aktiengesellschaft engages in the development, production, and sale of professional cooking appliances for industrial kitchens worldwide. It offers iCombi Pro and iCombi Classic, a combi-steamer with intelligent cooking paths, as well as care products for combi-steamers; iVario, a multifunctional cooking system that cooks in liquids or with contact with heat; and ConnectedCooking, an online portal for the professional kitchen. The company also provides accessories, service parts, and services for its products. It serves restaurants and hotels; communal catering, such as company canteens, hospitals, schools, universities, military, prisons, and retirement homes; and quick service restaurants, caterers, supermarkets, bakery and snack shops, butchers, petrol stations, and delivery services. The company sells its products through independent distribution partners. RATIONAL Aktiengesellschaft was founded in 1973 and is headquartered in Landsberg am Lech, Germany.

How the Company Makes MoneyRational AG generates revenue through the sale of its high-performance cooking systems, including its flagship products like the SelfCookingCenter and CombiMaster Plus. The company targets professional kitchens across various sectors such as restaurants, hotels, and institutional catering services, leveraging its strong brand reputation and technological innovation to drive sales. Rational also benefits from after-sales services, including maintenance and customer support, which provide additional revenue streams. Strategic partnerships with distributors and service partners worldwide enhance its market reach and contribute to its earnings by ensuring a comprehensive service network and accessibility to its products globally.

Rational Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
1.17B	1.13B	1.02B	779.73M	649.59M	843.63M
	Gross Profit
683.69M	638.62M	565.07M	429.27M	360.12M	497.56M
	EBIT
303.27M	281.48M	238.26M	159.51M	103.12M	225.95M
	EBITDA
345.20M	317.96M	269.18M	189.82M	132.39M	250.93M
	Net Income Common Stockholders
236.05M	215.76M	185.72M	123.66M	80.10M	171.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
255.25M	402.67M	202.34M	246.38M	226.61M	278.10M
	Total Assets
644.39M	966.85M	899.22M	783.84M	670.75M	698.69M
	Total Debt
10.63M	28.08M	19.00M	19.59M	22.75M	26.69M
	Net Debt
-158.86M	-109.88M	-182.22M	-226.12M	-203.11M	-150.78M
	Total Liabilities
152.85M	228.24M	222.98M	180.51M	135.66M	181.32M
	Stockholders Equity
491.53M	738.61M	676.24M	603.33M	535.09M	517.37M
Cash Flow		Free Cash Flow
239.74M	223.71M	123.43M	145.89M	59.29M	157.96M
	Operating Cash Flow
273.02M	258.35M	160.62M	171.71M	92.69M	198.64M
	Investing Cash Flow
-113.90M	-161.71M	-81.86M	-84.29M	38.39M	-55.42M
	Financing Cash Flow
-166.06M	-165.56M	-124.61M	-65.85M	-78.93M	-119.30M

Rational Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price762.00

Price Trends

50DMA

782.71

Negative

100DMA

813.46

Negative

200DMA

849.52

Negative

Market Momentum

MACD

-4.33

Negative

RSI

53.48

Neutral

STOCH

73.44

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RAA, the sentiment is Neutral. The current price of 762 is above the 20-day moving average (MA) of 733.75, below the 50-day MA of 782.71, and below the 200-day MA of 849.52, indicating a neutral trend. The MACD of -4.33 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:RAA.

Rational Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G1A	77 Outperform	€9.93B	25.23	16.56%	1.70%	1.79%	0.06%
HEI	75 Outperform	€33.01B	18.75	9.69%	1.62%	-0.10%	-6.11%
SIE	75 Outperform	€163.65B	17.30	14.18%	2.43%	-1.13%	8.98%
RAA	72 Outperform	€8.66B	34.48	31.40%	1.77%	6.42%	14.12%
EVD	69 Neutral	€10.41B	32.63	33.15%	1.32%	19.08%	16.10%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
BAS	59 Neutral	€38.60B	52.23	2.02%	7.82%	-2.04%	2258.97%

* Industrials Sector Average

Performance Comparison

DE:RAA

Rational

762.00

-28.50

-3.61%

DE:EVD

CTS Eventim AG & Co. KGaA

108.40

27.70

34.32%

DE:BAS

BASF SE

43.25

-3.30

-7.10%

DE:G1A

GEA Group AG

59.00

21.51

57.37%

DE:HEI

Heidelberg Materials

185.00

86.60

88.00%

DE:SIE

Siemens

214.05

30.37

16.53%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.