| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 602.92 | -11 |
| Intrinsic value (DCF) | 521.99 | -23 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 305.61 | -55 |
RATIONAL AG (RAA.DE) is a global leader in professional cooking appliances for industrial kitchens, headquartered in Landsberg am Lech, Germany. Founded in 1973, the company specializes in high-efficiency combi-steamers and multifunctional cooking systems, including the iCombi Pro, iCombi Classic, and iVario lines. RATIONAL's innovative ConnectedCooking platform enhances kitchen management through digital solutions, catering to restaurants, hotels, communal catering, and quick-service establishments. With a strong focus on energy efficiency and automation, RATIONAL serves a diverse clientele, including hospitals, schools, and supermarkets, through a network of independent distributors. The company's commitment to technological advancement and sustainability positions it as a key player in the industrial machinery sector, driving operational excellence in professional kitchens worldwide.
RATIONAL AG presents a compelling investment case with its strong market position in professional cooking appliances, consistent profitability, and robust cash flow generation. The company's innovative product portfolio, including ConnectedCooking, provides a competitive edge in digital kitchen management. However, its high valuation (P/E ~32x) and exposure to cyclical hospitality demand pose risks. The solid dividend yield (~1.8%) and low debt levels enhance its appeal, but investors should monitor macroeconomic conditions affecting the foodservice industry.
RATIONAL AG dominates the premium segment of professional combi-steamers, leveraging its German engineering heritage and patented cooking technologies. Its primary competitive advantage lies in the iCombi Pro's intelligent cooking paths, which automate processes and reduce energy consumption—key selling points for cost-conscious commercial kitchens. The company's direct sales and service network provides superior customer support compared to generic OEM suppliers. However, RATIONAL faces competition from lower-cost Asian manufacturers in emerging markets and must continually innovate to justify its premium pricing. Its focus on high-margin aftermarket services (care products, spare parts) creates recurring revenue streams that competitors struggle to match. The ConnectedCooking platform differentiates RATIONAL in the IoT-enabled kitchen space, though adoption rates remain a challenge in price-sensitive segments.