Is RATIONAL Aktiengesellschaft (ETR:RAA) Potentially Underrated?
I've been keeping an eye on RATIONAL Aktiengesellschaft (ETR:RAA) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe RAA has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a great track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on RATIONAL here.
Flawless balance sheet with solid track record and pays a dividend
In the previous year, RAA has ramped up its bottom line by 11%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 39%. which is an notable feat for the company. RAA's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. RAA seems to have put its debt to good use, generating operating cash levels of 15.98x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, RAA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.4%.
Next Steps:
For RATIONAL, I've put together three pertinent aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for RAA’s future growth? Take a look at our free research report of analyst consensus for RAA’s outlook.
Valuation: What is RAA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RAA is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RAA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
