RATIONAL AG

Sinisa

Sinisa

— 2 min read
RATIONAL AG

RATIONAL AG is a leading German manufacturer of professional kitchen equipment, specializing in innovative cooking solutions for commercial kitchens. Here are some key points about the company:

  1. History and Background:
  • Founded in 1973 by Siegfried Meister in Landsberg am Lech, Germany.
  • Initially produced hot air appliances, then focused solely on combi steamers from 1978.
  • Went public in 2000 and is listed on the Frankfurt Stock Exchange.
  1. Products and Technology:
  • Main products include the iCombi Pro combi steamer and iVario Pro multifunctional cooking system.
  • Recently launched the iHexagon, a new product category combining convection heat, steam, and microwaves.
  • Offers cloud-based networking solutions like ConnectedCooking for remote appliance management.
  1. Market Position:
  • Global market and technology leader in innovative cooking solutions for professional kitchens.
  • Serves a wide range of customers including restaurants, hotels, company canteens, hospitals, schools, and quick-service restaurants.
  • Has an export share of 87% and operates in over 120 countries.
  1. Financial Performance:
  • In 2021, generated sales of €779.7 million with an EBIT of €160 million.
  • As of 2024, has a market capitalization of around €8.56 billion.
  1. Innovation and Strategy:
  • Focuses on precision, efficiency, and intelligent cooking processes.
  • Emphasizes sustainability and resource efficiency in product development.
  • Uses a "pull principle" strategy for new product launches, aiming for gradual market penetration.
  1. Recent Developments:
  • Launched the iHexagon in February 2024, marking its third major product category.
  • Introduced the iCareSystem AutoDose, an integrated cleaning system for iCombi Pro units, in October 2023.
  1. Ownership and Management:
  • The founding family (Meister) holds 55.2% of shares, with 44.8% in public float.
  • Current CEO is Peter Stadelmann, who has been in the role since 2014.

RATIONAL AG continues to be a leader in professional kitchen technology, with a strong focus on innovation and efficiency in commercial food preparation.

Based on the search results, here are some key points about RATIONAL AG's valuation:

  1. Market Capitalization:
  • As of August 2024, RATIONAL AG has a market capitalization of approximately €10.31-10.36 billion.
  1. Valuation Multiples:
  • The P/E ratio for 2024 is estimated at 43.7x.
  • The P/E ratio for 2025 is estimated at 40.5x.
  • The EV/Sales ratio for 2024 is estimated at 8.27x.
  • The EV/Sales ratio for 2025 is estimated at 7.61x.
  1. Financial Projections:
  • Revenue is projected to grow from €1,198 million in 2024 to €1,665 million in 2028.
  • EPS is expected to increase from €20.80 in 2024 to €28.95 in 2028.
  • EBIT is forecast to grow from €305 million in 2024 to €414 million in 2028.
  1. Dividend Yield:
  • The dividend yield for 2024 is estimated at 1.65%.
  • The dividend yield is projected to increase to 2.25% by 2028.
  1. Recent Performance:
  • As of August 30, 2024, RATIONAL AG's stock price was €911.50, up 30.31% year-to-date.
  • The company reported strong Q1 2024 results, with sales revenues of €286.4 million, up 1% year-over-year.
  1. Valuation Approach:
  • RATIONAL AG, being a machinery business, is likely valued using a combination of income-based (e.g., discounted cash flow) and market-based (e.g., comparable company multiples) approaches.
  1. Industry Context:
  • Machinery businesses are often valued based on EBITDA multiples, typically ranging from 5x to 9x.

Overall, RATIONAL AG appears to be trading at relatively high valuation multiples, reflecting strong growth expectations and its position as a market leader in professional kitchen equipment. The company's solid financial performance and positive outlook seem to be supporting its premium valuation.

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