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1. Company Snapshot

1.a. Company Description

RATIONAL 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.

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1.b. Last Insights on RAA

RATIONAL Aktiengesellschaft's recent performance was negatively impacted by a decline in its fair value estimate to €712, down from €835, as calculated by a 2-stage free cash flow to equity model. This suggests that the company's financial performance may not be meeting expectations. Additionally, the company's recent quarterly report may have revealed weak financials, as hinted by analysts' comments last week. The company's stock had previously been on an uptrend, but this may have been short-lived.

1.c. Company Highlights

2. RATIONAL Delivers Solid First Half Despite Headwinds

RATIONAL reported record sales of EUR 606 million in the first half of 2025, representing a 4% year-over-year increase. The company's EBIT margin also remained strong at 25.3%, exceeding pre-pandemic levels. While the company's earnings per share (EPS) came in at €5.57, surpassing analyst estimates of €4.65, RATIONAL revised its full-year EBIT margin guidance to the lower end of the 25%-27% range due to currency fluctuations and tariffs.

Publication Date: Aug -15

📋 Highlights
  • Record H1 Sales:: EUR 606 million in H1 2025, 4% YoY growth driven by North America (11%), Europe (9%), and Asia challenges.
  • Product Growth:: iVario up 9%, iCombi up 4%, with iVario projected for double-digit 2025 growth in the U.S. and Europe.
  • EBIT Margin Impact:: EBIT at EUR 153 million (25.3% margin), but revised full-year guidance to 25%-27% due to tariffs and FX headwinds (-EUR 5M impact).
  • Regional Disparities:: Europe ex-Germany +12%, Germany -6%, Asia -11% YoY (vs. strong 2024 comparison), with 2026 recovery expected.
  • Cost and Investment:: Tariffs add EUR 10M cost in 2025; R&D and sales expansion ongoing, with new hires achieving productivity in 3-6 months.

Regional Performance

The company's regional performance was mixed, with North America leading growth at 11%, followed by Europe (9%). Asia sales declined by 11% year-on-year due to a difficult comparison with Q2 2024, which saw strong orders from China and Japan. The company expects Asia to return to growth in 2026 with the launch of the "Road to China" product, a more affordable offering aimed at expanding market share in the region.

Product Group Performance

Both the iVario and iCombi product groups saw sales increases, albeit at differing rates. iVario growth slowed to 8% year-on-year, although it still outpaced the 4% growth of the iCombi. The company expects double-digit growth for the iVario in 2025, driven by expansion in the U.S. market and growth in established European markets.

Margin Pressure

RATIONAL's gross margin decreased slightly to 58.9% in Q2 2025 from 59.3% in the first half of 2024. The company attributes this fluctuation to normal quarterly variations. However, tariffs are expected to add EUR 10 million in total cost for 2025, putting pressure on margins. The company expects the gross margin for the second half of 2025 to be slightly lower than the first half, which stood at 25.3%.

Outlook and Valuation

Despite these headwinds, RATIONAL remains optimistic about its future prospects. The company plans to continue expanding its sales force, investing in innovation, and capitalizing on market opportunities in key regions. Analysts estimate next year's revenue growth at 7.1%. Valuations appear stretched, with a P/E ratio of 29.16, a P/B ratio of 8.02, and a P/S ratio of 6.09. However, the company's strong track record of growth and profitability, coupled with its commitment to innovation, may justify the premium valuation.

3. NewsRoom

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A Look At The Intrinsic Value Of RATIONAL Aktiengesellschaft (ETR:RAA)

Nov -14

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Declining Stock and Solid Fundamentals: Is The Market Wrong About RATIONAL Aktiengesellschaft (ETR:RAA)?

Sep -21

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

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Has Evotec’s 29.5% Price Drop Created a New Opportunity for 2025?

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.76%)

6. Segments

EMEA

Expected Growth: 7.5%

EMEA region's 7.5% growth driven by increasing demand for automated cooking solutions in restaurants and canteens, coupled with Rational's strong brand presence and expanding distribution network. Additionally, growing trend of ghost kitchens and food delivery services contributes to the region's growth.

North America

Expected Growth: 8.5%

RATIONAL Aktiengesellschaft's 8.5% growth in North America is driven by increasing demand for automated cooking solutions in the hospitality industry, expansion of existing customer relationships, and strategic partnerships with key foodservice providers. Additionally, the region's growing trend towards ghost kitchens and meal kit delivery services also contributes to the company's growth.

Asia

Expected Growth: 9.0%

In Asia, RATIONAL Aktiengesellschaft's 9.0% growth is driven by increasing demand for commercial cooking solutions, particularly in China and Japan. Growing middle class, urbanization, and adoption of modern cooking techniques fuel the demand. Additionally, government initiatives promoting food safety and hygiene standards contribute to the growth.

DACH

Expected Growth: 7.0%

In DACH, Rational AG's 7.0% growth is driven by increasing demand for automated cooking solutions in the hospitality industry, coupled with a growing trend towards digitalization and connectivity in commercial kitchens. Additionally, the company's strong brand reputation, innovative product offerings, and strategic partnerships contribute to its market share expansion.

Other

Expected Growth: 6.5%

RATIONAL Aktiengesellschaft's 6.5% growth is driven by increasing demand for automated cooking solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, digitalization, and sustainability contributes to its growth. The rising trend of ghost kitchens and meal kit delivery services also fuels demand for RATIONAL's products, further supporting its growth momentum.

Reconciliation

Expected Growth: 0.0%

With 0.0% growth, RATIONAL Aktiengesellschaft's reconciliation is stagnant. Key drivers include flat sales, stable operating margins, and unchanged capital structure. No significant changes in market share, pricing, or cost structure are observed. The company's financial performance is neutral, indicating a lack of catalysts for growth.

Corporate Departments

Expected Growth: 0.0%

With 0.0% growth, RATIONAL Aktiengesellschaft's corporate departments are stagnant. Key drivers include inefficient cost structures, lack of innovation, and inadequate resource allocation. Additionally, poor supply chain management, ineffective marketing strategies, and insufficient employee training are hindering growth. To revitalize growth, the company must address these underlying issues and implement strategic changes to drive progress.

7. Detailed Products

Combi Steamer

A versatile cooking appliance that combines steam and convection heat for perfect cooking results

Combi Oven

A high-performance oven that combines convection heat, steam, and precision temperature control for perfect cooking results

VarioCookingCenter

A multifunctional cooking system that combines the functions of a boiler, fryer, and oven in one appliance

SelfCookingCenter

An intelligent cooking system that automatically recognizes the type of food being cooked and adjusts cooking parameters accordingly

CareService

A comprehensive maintenance and support program that ensures RATIONAL appliances are always running at optimal performance

RATIONAL Academy

A training program that provides chefs and kitchen staff with the skills and knowledge to get the most out of their RATIONAL appliances

8. RATIONAL Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

RATIONAL Aktiengesellschaft operates in a market with moderate threat of substitutes, as customers have some alternatives but they are not very attractive.

Bargaining Power Of Customers

RATIONAL Aktiengesellschaft's customers have low bargaining power due to the company's strong brand and limited alternatives.

Bargaining Power Of Suppliers

RATIONAL Aktiengesellschaft's suppliers have moderate bargaining power, as the company relies on a few key suppliers but has some alternatives.

Threat Of New Entrants

RATIONAL Aktiengesellschaft operates in a market with high barriers to entry, making it difficult for new entrants to join the market.

Intensity Of Rivalry

RATIONAL Aktiengesellschaft operates in a highly competitive market with many established players, leading to intense rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.66%
Debt Cost 6.11%
Equity Weight 96.34%
Equity Cost 9.77%
WACC 9.63%
Leverage 3.80%

11. Quality Control: RATIONAL Aktiengesellschaft passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Burckhardt Compression

A-Score: 6.2/10

Value: 4.3

Growth: 7.8

Quality: 7.4

Yield: 5.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Weir

A-Score: 5.7/10

Value: 2.7

Growth: 6.1

Quality: 6.1

Yield: 2.5

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.9

Growth: 6.3

Quality: 7.6

Yield: 3.8

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Krones

A-Score: 5.5/10

Value: 5.7

Growth: 6.9

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Pentair

A-Score: 4.9/10

Value: 1.8

Growth: 4.8

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Rational

A-Score: 4.7/10

Value: 1.4

Growth: 6.4

Quality: 8.8

Yield: 2.5

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

628.0$

Current Price

628$

Potential

-0.00%

Expected Cash-Flows