Ralliant Corp (RAL) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Ralliant's price-to-book of 4.89 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading above fair value

The share price of $71.50 is above our fair value estimate of $53.37.

Margin of safety under 20%

The price is 34.0% above fair value, so there is no margin of safety.

Revenue growth over 3 years

Needs three years of positive revenue.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.4% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Ralliant raised its full year 2026 Revenue outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 51.6% over the last twelve months, against 50.5% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was -27.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Ralliant's return on equity of -51.8% is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin below the industry

Ralliant's net margin of -52.1% is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

High debt

Debt is 71.1% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.4% of total debt.

Interest not well covered

Operating income covers interest expense -19.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.65 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.51; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ralliant paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ralliant yields 0.3%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 7.4% of free cash flow.