Rational Aktiengesellschaft Unsponsored ADR (RATIY) AI Stock Analysis

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Rational Aktiengesellschaft Unsponsored ADR

(Other OTC:RATIY)

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Rating:80Outperform

Price Target:$40.00▲(16.13% Upside)

Action:reiterated

Date:11/10/26

The score is driven primarily by excellent financial performance (high margins, strong ROE, minimal leverage) and a constructive earnings update (raised margin guidance and solid 9-month EBIT growth). Offsetting factors are a mixed technical backdrop (still below longer-term moving averages) and a valuation that appears premium on P/E despite a supportive dividend yield, alongside noted regional/cost headwinds (notably China weakness and rising costs).

Positive Factors

High ProfitabilityRATIONAL’s high gross, net, and EBIT margins indicate strong pricing power and efficient operations in a specialized commercial-kitchen market. Sustained profitability provides resources for product development, customer support, and international expansion while improving resilience against moderate cost inflation.

Negative Factors

China Weakness and Customer ConcentrationThe sharp China decline is a meaningful regional drag and reflects both pricing pressure and the loss of important customer volume. Rebuilding the dealer network and sales organization will take time, so China may remain a prolonged source of weaker growth and require additional commercial investment.

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

Market Cap: $7.63B
Dividend Yield: 2.89%
Average Volume (3M): ―
Price to Earnings (P/E): 26.3
Beta (1Y): 0.83
Revenue Growth: 11.75%
EPS Growth: 12.32%
Country: US
Employees: 2,838
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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-steamers e...

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 net...

Rational Aktiengesellschaft Unsponsored ADR Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:-5.52%|Next Earnings Date:Mar 25, 2027

Earnings Call SentimentPositive

The call was broadly positive. Revenue increased 6% after nine months, EBIT grew 12%, the company raised its 2026 EBIT margin guidance to 26% to 27%, Europe remained strong, iVario and iHexagon showed favorable development, and the balance sheet and customer satisfaction metrics were robust. The main negatives were the 19% decline in China revenue, weaker Middle East and North American school-business activity, a demanding Q4 comparison base, and rising input, logistics, wage, and tariff-related costs. Management nevertheless described underlying demand as healthy and confirmed its medium-term growth ambition.

Positive Updates

Nine-Month Revenue Growth

Sales revenues reached EUR 974 million after nine months of fiscal 2026, up 6% year over year and up 7% when adjusted for negative foreign-exchange effects. Management said this performance outperformed all competitors publishing nine-month figures.

Negative Updates

China Revenue Decline

Asia revenues were approximately 6% below the prior year in Q3 and down 3% after nine months, primarily because China revenues declined around 19%. The decline was mainly driven by Yum China's decision to source combi ovens locally, with a larger share of demand awarded to local supplier Justa, primarily because of pricing.

Company Guidance

For Q4, RATIONAL expects growth in the lower single-digit percentage range, defined as 1% to 5%, and for 2026 expects revenue growth in the mid to high single-digit percentage range, coming out at the lower end of this range; EBIT is confirmed at EUR 340 million to EUR 360 million, while EBIT margin guidance is a corridor between 26% and 27%, gross margin will be on or slightly above the prior year level, and operating expenses will grow approximately proportionally with sales revenues or slightly slower. In the medium term, high single-digit growth of around 8% is achievable, with an EBIT margin of around 25% to 26% as a sustainable midterm level; CapEx is expected to be in the range between 2% and 3% of sales revenues, while 2027 pricing decisions remain undecided and tariffs are expected to remain broadly unchanged.

Rational Aktiengesellschaft Unsponsored ADR Financial Statement Overview

Summary

Fundamentals are high quality: strong profitability (TTM gross margin ~59%, net margin ~21%, EBIT margin ~27%), very conservative leverage (TTM debt-to-equity ~0.03) and strong ROE (~29%). Cash generation is solid with operating cash flow exceeding net income (~1.53x), though the recent decline in free cash flow growth (TTM down ~6.7%) is the main near-term blemish.

Income Statement

92Very Positive

Balance Sheet

94Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.32B	1.21B	1.19B	1.13B	1.02B	779.73M
Gross Profit	783.75M	714.10M	706.63M	638.62M	565.07M	429.27M
EBITDA	393.87M	354.55M	364.99M	317.96M	269.18M	189.82M
Net Income	273.58M	243.83M	250.53M	215.76M	185.72M	123.66M
Balance Sheet
Total Assets	1.20B	1.19B	1.11B	989.03M	899.22M	783.84M
Cash, Cash Equivalents and Short-Term Investments	143.55M	539.15M	493.62M	402.67M	202.34M	246.38M
Total Debt	21.60M	27.13M	29.80M	28.08M	19.00M	19.59M
Total Liabilities	272.54M	251.17M	249.26M	228.24M	222.98M	180.51M
Stockholders Equity	930.64M	940.39M	856.90M	760.79M	676.24M	603.33M
Cash Flow
Free Cash Flow	249.93M	221.08M	251.45M	223.71M	123.43M	145.89M
Operating Cash Flow	291.68M	253.45M	283.06M	258.35M	160.62M	171.71M
Investing Cash Flow	-80.46M	-42.70M	-102.69M	-161.71M	-81.86M	-84.29M
Financing Cash Flow	-239.77M	-175.16M	-166.16M	-165.56M	-124.61M	-65.85M

Rational Aktiengesellschaft Unsponsored ADR Technical Analysis

Technical Analysis SentimentNeutral

Last Price34.44

Price Trends

50DMA33.91Positive

100DMA35.48Negative

200DMA37.09Negative

Market Momentum

MACD0.39Positive

RSI52.28Neutral

STOCH17.68Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RATIY, the sentiment is Neutral. The current price of 34.44 is below the 20-day moving average (MA) of 35.02, above the 50-day MA of 33.91, and below the 200-day MA of 37.09, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RATIY.

Rational Aktiengesellschaft Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

RATIY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RATIY	80Outperform	$7.89B	26.31	29.44%	2.89%	11.75%	12.32%
ITW	70Outperform	$81.86B	25.71	103.39%	2.27%	4.80%	8.78%
JBTM	66Neutral	$6.63B	33.57	4.39%	0.32%	20.50%	―
SXI	65Neutral	$2.98B	26.07	15.23%	0.56%	8.32%	115.10%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MIDD	56Neutral	$6.25B	159.37	2.18%	―	-16.65%	―

* Industrials Sector Average

Performance Comparison

RATIY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RATIY	Rational Aktiengesellschaft Unsponsored ADR	34.44	-1.39	-3.87%
ITW	Illinois Tool Works	286.75	48.86	20.54%
JBTM	Jbt Marel Corporation	125.17	-9.14	-6.80%
SXI	Standex International	243.05	11.01	4.74%
MIDD	The Middleby	135.44	40.49	42.64%
MFP	Midera Food Processing, Inc.	45.16	-65.34	-59.13%

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: Nov 10, 2026

Rational Aktiengesellschaft Unsponsored ADR AI Stock Analysis