RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RECT - BE0003656676 - Common Stock
9.64 EUR
+0.07 (+0.73%)
RECT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
RECT had positive earnings in the past year.
RECT had a positive operating cash flow in the past year.
In the past 5 years RECT has always been profitable.
Each year in the past 5 years RECT had a positive operating cash flow.
1.2 Ratios
RECT's Return On Assets of 1.62% is on the low side compared to the rest of the industry. RECT is outperformed by 77.27% of its industry peers.
The Return On Equity of RECT (2.64%) is worse than 77.27% of its industry peers.
With a Return On Invested Capital value of 3.12%, RECT is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for RECT is significantly below the industry average of 10.58%.
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
With a Profit Margin value of 1.74%, RECT is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
RECT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.39%, RECT is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
RECT's Operating Margin has declined in the last couple of years.
RECT's Gross Margin of 16.66% is on the low side compared to the rest of the industry. RECT is outperformed by 95.45% 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.
The number of shares outstanding for RECT has been increased compared to 1 year ago.
The debt/assets ratio for RECT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that RECT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.82, RECT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
RECT has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as RECT would need 3.17 years to pay back of all of its debts.
The Debt to FCF ratio of RECT (3.17) is better than 68.18% of its industry peers.
RECT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.10, RECT belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.42
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.91 indicates that RECT should not have too much problems paying its short term obligations.
RECT has a Current ratio of 1.91. This is amongst the best in the industry. RECT outperforms 81.82% of its industry peers.
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.
The Quick ratio of RECT (1.52) is better than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.77% over the past year.
The earnings per share for RECT have been decreasing by -30.42% on average. This is quite bad
Looking at the last year, RECT shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
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
RECT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.93% yearly.
Based on estimates for the next years, RECT will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
EPS Next Y-4.62%
EPS Next 2Y21.24%
EPS Next 3Y23.93%
EPS Next 5YN/A
Revenue Next Year10.06%
Revenue Next 2Y8.19%
Revenue Next 3Y9.02%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 45.90 indicates a quite expensive valuation of RECT.
77.27% of the companies in the same industry are cheaper than RECT, based on the Price/Earnings ratio.
RECT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 19.37, the valuation of RECT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RECT is on the same level as its industry peers.
RECT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.9 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RECT.
Based on the Price/Free Cash Flow ratio, RECT is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
RECT's earnings are expected to grow with 23.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.24%
EPS Next 3Y23.93%
5. Dividend
5.1 Amount
RECT has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.34, RECT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, RECT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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
RECT pays out 155.43% of its income as dividend. 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 2Y21.24%
EPS Next 3Y23.93%
EBR:RECT (12/24/2025, 7:00:00 PM)
9.64
+0.07 (+0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners21.85%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap547.07M
Revenue(TTM)646.78M
Net Income(TTM)11.22M
Analysts78.33
Price Target12.14 (25.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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)-7.32%
PT rev (3m)-10.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.07%
EPS NY rev (3m)-29.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.9 | ||
| Fwd PE | 19.37 | ||
| P/S | 0.85 | ||
| P/FCF | 33.52 | ||
| P/OCF | 13.49 | ||
| P/B | 1.29 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)0.21
EY2.18%
EPS(NY)0.5
Fwd EY5.16%
FCF(TTM)0.29
FCFY2.98%
OCF(TTM)0.71
OCFY7.41%
SpS11.4
BVpS7.48
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 | 2.82 |
F-Score6
WACC7.51%
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-4.62%
EPS Next 2Y21.24%
EPS Next 3Y23.93%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%12.25%
Revenue Next Year10.06%
Revenue Next 2Y8.19%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y11.16%
EBIT growth 3Y-16.01%
EBIT growth 5YN/A
EBIT Next Year138.15%
EBIT Next 3Y53.61%
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 1 / 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 -4.62% in the next year.