RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RECT - BE0003656676 - Common Stock
8.53 EUR
+0.11 (+1.31%)
Taking everything into account, RECT scores 5 out of 10 in our fundamental rating. RECT was compared to 23 industry peers in the Building Products industry. While RECT seems to be doing ok healthwise, there are quite some concerns on its profitability. RECT is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year RECT was profitable.
In the past year RECT had a positive cash flow from operations.
In the past 5 years RECT has always been profitable.
RECT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RECT has a Return On Assets of 1.62%. This is in the lower half of the industry: RECT underperforms 62.50% of its industry peers.
RECT has a Return On Equity of 2.64%. This is in the lower half of the industry: RECT underperforms 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.12%, RECT is doing worse than 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RECT is significantly below the industry average of 10.26%.
The last Return On Invested Capital (3.12%) for RECT is above the 3 year average (2.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 2.64% | ||
| ROIC | 3.12% |
ROA(3y)2.99%
ROA(5y)4.61%
ROE(3y)6.36%
ROE(5y)10.34%
ROIC(3y)2.83%
ROIC(5y)2.72%
1.3 Margins
RECT has a Profit Margin of 1.74%. This is in the lower half of the industry: RECT underperforms 62.50% of its industry peers.
RECT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.39%, RECT is doing worse than 66.67% of the companies in the same industry.
RECT's Operating Margin has declined in the last couple of years.
RECT has a worse Gross Margin (16.66%) than 87.50% of its industry peers.
RECT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| PM (TTM) | 1.74% | ||
| GM | 16.66% |
OM growth 3Y-24.16%
OM growth 5YN/A
PM growth 3Y-37.05%
PM growth 5YN/A
GM growth 3Y-3.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
RECT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RECT has more shares outstanding
RECT has a worse debt/assets ratio than last year.
2.2 Solvency
RECT has an Altman-Z score of 2.67. This is not the best score and indicates that RECT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RECT (2.67) is better than 62.50% of its industry peers.
The Debt to FCF ratio of RECT is 3.17, which is a good value as it means it would take RECT, 3.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.17, RECT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that RECT is not too dependend on debt financing.
The Debt to Equity ratio of RECT (0.10) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.42
WACC7.48%
2.3 Liquidity
RECT has a Current Ratio of 1.91. This is a normal value and indicates that RECT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.91, RECT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
RECT has a Quick Ratio of 1.52. This is a normal value and indicates that RECT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.52, RECT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
RECT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.77%, which is quite impressive.
Measured over the past years, RECT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.42% on average per year.
RECT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.10%.
RECT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.75% yearly.
EPS 1Y (TTM)44.77%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%12.25%
3.2 Future
The Earnings Per Share is expected to grow by 23.80% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.29% on average over the next years. This is quite good.
EPS Next Y-5.62%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EPS Next 5YN/A
Revenue Next Year10.58%
Revenue Next 2Y8.62%
Revenue Next 3Y9.29%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.62 indicates a quite expensive valuation of RECT.
The rest of the industry has a similar Price/Earnings ratio as RECT.
RECT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 17.28, which indicates a rather expensive current valuation of RECT.
The rest of the industry has a similar Price/Forward Earnings ratio as RECT.
RECT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
RECT's Enterprise Value to EBITDA ratio is in line with the industry average.
RECT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
RECT's earnings are expected to grow with 23.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.74%
EPS Next 3Y23.8%
5. Dividend
5.1 Amount
RECT has a Yearly Dividend Yield of 2.58%.
RECT's Dividend Yield is a higher than the industry average which is at 4.29.
Compared to an average S&P500 Dividend Yield of 2.42, RECT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of RECT grows each year by 8.91%, which is quite nice.
Dividend Growth(5Y)8.91%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
155.43% of the earnings are spent on dividend by RECT. This is not a sustainable payout ratio.
The dividend of RECT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP155.43%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EBR:RECT (11/21/2025, 7:00:00 PM)
8.53
+0.11 (+1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners22.24%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap483.91M
Revenue(TTM)646.78M
Net Income(TTM)11.22M
Analysts78.33
Price Target12.14 (42.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend0.31
Dividend Growth(5Y)8.91%
DP155.43%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.68%
PT rev (3m)-12.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-15.32%
EPS NY rev (3m)-30.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 17.28 | ||
| P/S | 0.75 | ||
| P/FCF | 29.65 | ||
| P/OCF | 11.94 | ||
| P/B | 1.14 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)0.21
EY2.46%
EPS(NY)0.49
Fwd EY5.79%
FCF(TTM)0.29
FCFY3.37%
OCF(TTM)0.71
OCFY8.38%
SpS11.4
BVpS7.49
TBVpS4.84
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 2.64% | ||
| ROCE | 4.16% | ||
| ROIC | 3.12% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 6% | ||
| OM | 3.39% | ||
| PM (TTM) | 1.74% | ||
| GM | 16.66% | ||
| FCFM | 2.52% |
ROA(3y)2.99%
ROA(5y)4.61%
ROE(3y)6.36%
ROE(5y)10.34%
ROIC(3y)2.83%
ROIC(5y)2.72%
ROICexc(3y)3.69%
ROICexc(5y)3.43%
ROICexgc(3y)5.5%
ROICexgc(5y)4.63%
ROCE(3y)3.98%
ROCE(5y)3.81%
ROICexgc growth 3Y8.33%
ROICexgc growth 5YN/A
ROICexc growth 3Y-4.16%
ROICexc growth 5YN/A
OM growth 3Y-24.16%
OM growth 5YN/A
PM growth 3Y-37.05%
PM growth 5YN/A
GM growth 3Y-3.23%
GM growth 5YN/A
F-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 77.92% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 14.53 | ||
| Cash Conversion | 76.46% | ||
| Profit Quality | 145.39% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.67 |
F-Score6
WACC7.48%
ROIC/WACC0.42
Cap/Depr(3y)84.02%
Cap/Depr(5y)70.1%
Cap/Sales(3y)3.66%
Cap/Sales(5y)3.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.77%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-5.62%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%12.25%
Revenue Next Year10.58%
Revenue Next 2Y8.62%
Revenue Next 3Y9.29%
Revenue Next 5YN/A
EBIT growth 1Y11.16%
EBIT growth 3Y-16.01%
EBIT growth 5YN/A
EBIT Next Year149.85%
EBIT Next 3Y56.39%
EBIT Next 5YN/A
FCF growth 1Y-64.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.1%
OCF growth 3Y-41.91%
OCF growth 5YN/A
RECTICEL / RECT.BR FAQ
Can you provide the ChartMill fundamental rating for RECTICEL?
ChartMill assigns a fundamental rating of 5 / 10 to RECT.BR.
What is the valuation status for RECT stock?
ChartMill assigns a valuation rating of 2 / 10 to RECTICEL (RECT.BR). This can be considered as Overvalued.
What is the profitability of RECT stock?
RECTICEL (RECT.BR) has a profitability rating of 3 / 10.
Can you provide the financial health for RECT stock?
The financial health rating of RECTICEL (RECT.BR) is 6 / 10.
Can you provide the expected EPS growth for RECT stock?
The Earnings per Share (EPS) of RECTICEL (RECT.BR) is expected to decline by -5.62% in the next year.