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Rational Aktiengesellschaft Unsponsored ADR
(OTC:RATIY)
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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)
Market Cap
$7.46B
Dividend Yield3.11%
Average Volume (3M)0.00
Price to Earnings (P/E)24.4
Beta (1Y)0.81
Revenue Growth13.91%
EPS Growth12.35%
CountryUS
Employees2,838
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.16
Shares Outstanding227,400,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-13.87
Price to Book (P/B)9.47
Price to Sales (P/S)7.36
P/FCF Ratio40.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Positive
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
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.30B | 1.21B | 1.19B | 1.13B | 1.02B | 779.73M |
| Gross Profit | 769.81M | 714.10M | 706.63M | 638.62M | 565.07M | 429.27M |
| EBITDA | 387.24M | 354.55M | 364.99M | 317.96M | 269.18M | 189.82M |
| Net Income | 267.32M | 243.83M | 250.53M | 215.76M | 185.72M | 123.66M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.19B | 1.11B | 989.03M | 899.22M | 783.84M |
| Cash, Cash Equivalents and Short-Term Investments | 432.16M | 539.15M | 493.62M | 402.67M | 202.34M | 246.38M |
| Total Debt | 27.63M | 27.13M | 29.80M | 28.08M | 19.00M | 19.59M |
| Total Liabilities | 247.19M | 251.17M | 249.26M | 228.24M | 222.98M | 180.51M |
| Stockholders Equity | 845.71M | 940.39M | 856.90M | 760.79M | 676.24M | 603.33M |
Cash Flow | ||||||
| Free Cash Flow | 267.86M | 221.08M | 251.45M | 223.71M | 123.43M | 145.89M |
| Operating Cash Flow | 308.54M | 253.45M | 283.06M | 258.35M | 160.62M | 171.71M |
| Investing Cash Flow | 12.01M | -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
Negative
―
Price Trends
36.05
Negative
36.82
Negative
37.72
Negative
Market Momentum
-1.11
Positive
28.98
Positive
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $77.03B | 24.74 | 101.74% | 2.36% | 4.30% | -3.22% | |
75 Outperform | $7.46B | 24.39 | 29.09% | 3.11% | 13.91% | 12.35% | |
69 Neutral | $3.33B | 31.90 | 14.35% | 0.49% | 12.85% | 85.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $5.88B | 30.62 | 4.31% | 0.35% | 45.00% | ― | |
54 Neutral | $5.10B | -12.00 | -18.30% | ― | -7.22% | -191.27% |
* Industrials Sector Average
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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.