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Rational Aktiengesellschaft Unsponsored ADR (RATIY)
OTHER OTC:RATIY
US Market
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Rational Aktiengesellschaft Unsponsored ADR (RATIY) AI Stock Analysis

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RATIY

Rational Aktiengesellschaft Unsponsored ADR

(OTC:RATIY)

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Outperform 75 (OpenAI - Gpt-5.6Sol)
Rating:75Outperform
Price Target:
$37.00
Action:N/A
Date:09/24/26
Overall score reflects excellent financial performance (strong margins, ROE, low leverage, solid cash conversion) and a supportive earnings outlook with reiterated guidance, offset by weak technical momentum (downtrend across moving averages with negative MACD) and only moderate valuation appeal (P/E ~24.4 partially balanced by a ~3.1% dividend yield).
Positive Factors
Exceptional profitability
Rational’s exceptionally high margins indicate strong pricing power, efficient operations, and differentiated commercial-kitchen products. Their improvement over time supports resilient earnings capacity and provides room to absorb cost pressure while continuing investment in innovation, sales, and service.
Negative Factors
China market weakness
The sharp China decline demonstrates that Rational’s international growth is uneven and that local sourcing decisions can materially affect regional demand. Continued weakness would reduce scale benefits, weigh on growth, and make the company more reliant on Europe and North America.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability
Rational’s exceptionally high margins indicate strong pricing power, efficient operations, and differentiated commercial-kitchen products. Their improvement over time supports resilient earnings capacity and provides room to absorb cost pressure while continuing investment in innovation, sales, and service.
Read all positive factors

Rational Aktiengesellschaft Unsponsored ADR (RATIY) vs. SPDR S&P 500 ETF (SPY)

Rational Aktiengesellschaft Unsponsored ADR Business Overview & Revenue Model

Company Description
RATIONAL AG specializes globally in the design, manufacturing, and distribution of advanced professional cooking equipment tailored for industrial kitchens. Its core product line features the iCombi Pro and iCombi Classic, innovative combi-steamer...
How the Company Makes Money
Rational makes money primarily by selling commercial cooking equipment to professional kitchens worldwide. The core revenue stream is the sale of its cooking systems (notably combi-steamers and related cooking platforms), typically sold through a ...

Rational Aktiengesellschaft Unsponsored ADR Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a solid operational and financial picture: revenues and profitability grew (H1 revenue EUR 642m, EBIT +11% to EUR 170m, EBIT margin 26.5%), product momentum (iVario strong) and a healthy balance sheet/supportive order backlog underpin a positive outlook. Notable headwinds include a steep decline in China (‑25%), ongoing tariff exposure (~EUR 28–29m full-year), and rising input costs and inventories that pressure margins going forward. Management confirmed guidance and emphasized selective investment and pricing/efficiency options to offset cost pressures.
Positive Updates
Revenue Growth and Scale
Group revenues for H1 2026 were EUR 642 million, up organically 8% year-on-year (6% after FX adjustments). Q2 2026 revenue increased 4% to EUR 324 million. Management expects full-year growth in the mid- to high single-digit range.
Negative Updates
Sharp Decline in China
Asia revenues declined 2% overall; China revenues fell ~25% year-on-year mainly due to Yum China's decision to source combi ovens locally. Management describes China as a challenging short-term market despite long-term opportunity.
Read all updates
Q2-2026 Updates
Negative
Revenue Growth and Scale
Group revenues for H1 2026 were EUR 642 million, up organically 8% year-on-year (6% after FX adjustments). Q2 2026 revenue increased 4% to EUR 324 million. Management expects full-year growth in the mid- to high single-digit range.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance: they expect revenue to grow in the mid‑ to high‑single‑digit percent range (H1 revenue €642m, organic +8% / +6% after FX; Q2 €324m, +4%), supported by product and regional performance (iCombi +5% to €562m; iVario +14% to €79m; Germany +9%; Europe ex‑Germany +9% to €285m; North America €154m, +4% reported / +10% before FX; Asia -2%, China -25%); gross margin is expected slightly below prior year (H1 gross margin 59.8%; COGS rose ~4% in H1), operating expenses will increase particularly in direct sales while non‑sales costs are to be kept stable, and the group keeps its EBIT guidance with an expected full‑year EBIT margin toward the upper end of the 25–26% corridor (H1 EBIT €170m, 26.5% including a €14m U.S. tariff refund; ex‑refund 24.3%); tariff headwinds are expected at ~€28–29m for the year (H2 a little less; similar level budgeted for next year, possibly +€2–3m with U.S. volume), input cost pressures (steel, alloy surcharges, electronics, freight) should push COGS higher in H2, inventories were up ~10%, the Q2 order backlog was ~€10–15m higher than prior quarter‑ends, and planned service‑parts CapEx will add c. €1.5–2m depreciation when operational.

Rational Aktiengesellschaft Unsponsored ADR Financial Statement Overview

Summary
High-quality fundamentals: exceptionally strong and improving margins (TTM gross ~59%, EBIT ~27%, net ~21%), consistently high ROE (~29% TTM), very low leverage (minimal debt vs. equity), and solid cash generation (FCF ~87% of net income). Main watch item is slower growth cadence versus the earlier post-2021 surge and some cash-flow variability across periods.
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.30B1.21B1.19B1.13B1.02B779.73M
Gross Profit769.81M714.10M706.63M638.62M565.07M429.27M
EBITDA387.24M354.55M364.99M317.96M269.18M189.82M
Net Income267.32M243.83M250.53M215.76M185.72M123.66M
Balance Sheet
Total Assets1.09B1.19B1.11B989.03M899.22M783.84M
Cash, Cash Equivalents and Short-Term Investments432.16M539.15M493.62M402.67M202.34M246.38M
Total Debt27.63M27.13M29.80M28.08M19.00M19.59M
Total Liabilities247.19M251.17M249.26M228.24M222.98M180.51M
Stockholders Equity845.71M940.39M856.90M760.79M676.24M603.33M
Cash Flow
Free Cash Flow267.86M221.08M251.45M223.71M123.43M145.89M
Operating Cash Flow308.54M253.45M283.06M258.35M160.62M171.71M
Investing Cash Flow12.01M-42.70M-102.69M-161.71M-81.86M-84.29M
Financing Cash Flow-246.71M-175.16M-166.16M-165.56M-124.61M-65.85M

Rational Aktiengesellschaft Unsponsored ADR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price―
Price Trends
50DMA
36.05
Negative
100DMA
36.82
Negative
200DMA
37.72
Negative
Market Momentum
MACD
-1.11
Positive
RSI
28.98
Positive
STOCH
26.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RATIY, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 34.32, equal to the 50-day MA of 36.05, and equal to the 200-day MA of 37.72, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 28.98 is Positive, neither overbought nor oversold. The STOCH value of 26.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RATIY.

Rational Aktiengesellschaft Unsponsored ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$77.03B24.74101.74%2.36%4.30%-3.22%
75
Outperform
$7.46B24.3929.09%3.11%13.91%12.35%
69
Neutral
$3.33B31.9014.35%0.49%12.85%85.73%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
$5.88B30.624.31%0.35%45.00%―
54
Neutral
$5.10B-12.00-18.30%―-7.22%-191.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RATIY
Rational Aktiengesellschaft Unsponsored ADR
32.42
-5.33
-14.11%
ITW
Illinois Tool Works
272.00
20.47
8.14%
JBTM
JBT Marel
110.65
-25.25
-18.58%
SXI
Standex International
279.60
78.88
39.30%
MIDD
The Middleby
108.03
2.13
2.01%
MFP
Midera Food Processing, Inc.
42.98
-67.52
-61.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 24, 2026