RAL (Ralliant) Financial Strength: 5 (As of Jun. 2026) — 17% Below Median

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RAL Ralliant Corp RAL
16 GF Score
Price $63.61
! 5 Warning Signs
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What is Ralliant Financial Strength?

Ralliant RAL -0.50% 16 Financial Strength is 5 as of Jun. 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates RAL with a GF Score™ of 16/100. The stock has 5 warning signs investors should review.

Ralliant has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ralliant's Interest Coverage for the quarter that ended in Jun. 2026 was 5.96. Ralliant's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.51. As of today, Ralliant's Altman Z-Score is 1.13.


Ralliant  (NYSE:RAL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ralliant has the Financial Strength Rank of 5.


Ralliant Financial Strength Related Terms


RAL vs PLXS, VICR, LFUS: Financial Strength Comparison

For the Electronic Components subindustry, Ralliant's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ralliant Financial Strength vs Hardware Industry

For the Hardware industry and Technology sector, Ralliant's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ralliant's Financial Strength falls into.


RAL
16GF Score
Ralliant Corp RAL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Ralliant Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Ralliant's Interest Expense for the months ended in Jun. 2026 was $-14 Mil. Its Operating Income for the months ended in Jun. 2026 was $82 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $1,149 Mil.

Ralliant's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*82.2/-13.8
=5.96

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Ralliant's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1148.5) / 2271.2
=0.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Ralliant has a Z-score of 1.13, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.13 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Ralliant (RAL) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ralliant and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Ralliant's Financial Strength has ranged from 5.00 to 7.00.
Is Ralliant's Financial Strength too high?
Ralliant's current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 7.00. Overall, Ralliant has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Ralliant's Financial Strength compare to PLXS and VICR?
Ralliant's Financial Strength of 5 can be compared against companies in the Hardware industry. Historically, Ralliant's own Financial Strength has ranged from 5.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ralliant and its competitors. Ralliant's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ralliant stock overvalued right now?
Ralliant (RAL) has a current Financial Strength of 5. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Ralliant's overall GF Score™ is 16/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Ralliant (RAL), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Ralliant Business Description

Other Exchanges Y0I:Germany
Address 4114 Center at North Hills Street, Suite 400, Raleigh, NC, USA, 27609
Ralliant Corp is a technology company with businesses that design, develop, manufacture, and service precision instruments and engineered products. It include portfolio of over 2,200 active patents and engineers at industry companies, research institutions, and governments, across semiconductor, datacenter, consumer electronics, automotive, energy storage, aero, defense and space, utilities, industrial manufacturing, and other industries. It is organized into two strategic segments: Test and Measurement and Sensors and Safety Systems. Sensors and Safety Systems generates key revenue, which includes businesses going to market under the following brands: Qualitrol, Gems Sensors, Setra Systems, Hengstler Dynapar, Anderson-Negele, Dover Motion, Specialty Product Technologies (SPT), etc.
16GF Score

Get the complete analysis for RAL

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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