Ralliant (RAL) Stock Analysis & Winston Score

Ralliant Corporation makes specialized test and measurement equipment, sensors, and electronic systems used in defense, aerospace, and industrial applications. Its products help customers check whether complex systems — like missiles, aircraft, and radar — are working correctly and safely. The company serves government defense agencies, military contractors, and industrial manufacturers, primarily in the United States.

Ralliant earns revenue by selling hardware, software, and related services to its customers, with a mix of long-term government contracts and commercial sales providing some revenue stability. It operates mainly in North America with some international exposure, and its roughly $6.9 billion market cap reflects a mid-sized industrial business. The company's moat comes partly from the technical complexity of its products and the high cost of switching suppliers in defense programs, but its growth depends heavily on U.S. defense spending levels, meaning budget cuts or program cancellations represent a meaningful risk to future revenue.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-13.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$165M/ year

→ Flat (+1% vs prior year)

8.0% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

0.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$268M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Ralliant is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.6% over 3y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 112.7M (2022) → 113.4M (2025)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

46.8%

Healthy — 46.8% gross margin

Operating Margin

12.7%

Healthy — 12.7% operating margin

ROCE

2.5%

Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+1.3%

Nearly flat sales (1.3% YoY)

EPS YoY

-621.8%

Earnings shrinking (-621.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

14.2%

Converts sales into free cash efficiently (14.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.73

Moderate — manageable debt (0.73)

Interest Cover

5.37x

Adequate interest coverage (5.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

0.29%

Small dividend — 0.29% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

N/A

no trend

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial