Rational AG
Rational AG Fundamental Analysis
Rational AG (RAA.DE) shows strong financial fundamentals with a PE ratio of 29.86, profit margin of 20.62%, and ROE of 29.56%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 6.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RAA.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRAA.DE demonstrates superior asset utilization.
Valuation Score
WeakRAA.DE trades at a premium to fair value.
Growth Score
ExcellentRAA.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRAA.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentRAA.DE achieves industry-leading margins.
Key Financial Metrics
Is RAA.DE Expensive or Cheap?
P/E Ratio
RAA.DE trades at 29.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RAA.DE's PEG of 60.56 indicates potential overvaluation.
Price to Book
The market values Rational AG at 8.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.86 times EBITDA. This signals the market has high growth expectations.
How Well Does RAA.DE Make Money?
Net Profit Margin
For every $100 in sales, Rational AG keeps $20.62 as profit after all expenses.
Operating Margin
Core operations generate 26.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.56 in profit for every $100 of shareholder equity.
ROA
Rational AG generates $23.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rational AG produces operating cash flow of $265.32M, showing steady but balanced cash generation.
Free Cash Flow
Rational AG generates strong free cash flow of $238.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $21.00 in free cash annually.
FCF Yield
RAA.DE converts 3.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
60.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How RAA.DE Stacks Against Its Sector Peers
| Metric | RAA.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.86 | 25.83 | Worse (Expensive) |
| ROE | 29.56% | 1291.00% | Weak |
| Net Margin | 20.62% | -43757.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 4.24 | 10.66 | Strong Liquidity |
| ROA | 23.01% | -1540646.00% (disorted) | Strong |
RAA.DE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rational AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
46.01%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
42.50%
Industry Style: Cyclical, Value, Infrastructure
High Growth