RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RECT - BE0003656676 - Common Stock
9.77 EUR
+0.09 (+0.93%)
Taking everything into account, RECT scores 5 out of 10 in our fundamental rating. RECT was compared to 27 industry peers in the Building Products industry. The financial health of RECT is average, but there are quite some concerns on its profitability. RECT shows excellent growth, but is valued quite expensive already.
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.
Each year in the past 5 years RECT has been profitable.
RECT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.62%, RECT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of RECT (2.64%) is worse than 66.67% of its industry peers.
The Return On Invested Capital of RECT (3.12%) is worse than 70.37% of its industry peers.
RECT had an Average Return On Invested Capital over the past 3 years of 2.83%. This is significantly below the industry average of 8.90%.
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: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RECT has declined.
RECT's Operating Margin of 3.39% is on the low side compared to the rest of the industry. RECT is outperformed by 70.37% of its industry peers.
RECT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 16.66%, RECT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RECT has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RECT is destroying value.
The number of shares outstanding for RECT has been increased compared to 1 year ago.
RECT has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.82, RECT is in the better half of the industry, outperforming 74.07% 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 77.78% of its industry peers.
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 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.42
WACC7.46%
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 85.19% 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.
Looking at the Quick ratio, with a value of 1.52, RECT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| 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.
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%.
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
The Earnings Per Share is expected to grow by 23.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, RECT will show a quite strong growth in Revenue. The Revenue will grow by 9.29% on average per year.
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.
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
RECT is valuated quite expensively with a Price/Earnings ratio of 46.52.
RECT's Price/Earnings ratio is a bit more expensive when compared to the industry. RECT is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. RECT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 19.79 indicates a rather expensive valuation of RECT.
RECT's Price/Forward Earnings ratio is in line with the industry average.
RECT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.52 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RECT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RECT indicates a slightly more expensive valuation: RECT is more expensive than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.96 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RECT's earnings are expected to grow with 23.80% in the coming years.
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 2.38%. Purely for dividend investing, there may be better candidates out there.
RECT's Dividend Yield is a higher than the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.32, RECT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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.
RECT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP155.43%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EBR:RECT (12/5/2025, 7:00:00 PM)
9.77
+0.09 (+0.93%)
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 Cap554.25M
Revenue(TTM)646.78M
Net Income(TTM)11.22M
Analysts78.33
Price Target12.14 (24.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 | 46.52 | ||
| Fwd PE | 19.79 | ||
| P/S | 0.86 | ||
| P/FCF | 33.96 | ||
| P/OCF | 13.67 | ||
| P/B | 1.3 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)0.21
EY2.15%
EPS(NY)0.49
Fwd EY5.05%
FCF(TTM)0.29
FCFY2.94%
OCF(TTM)0.71
OCFY7.32%
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 | 2.82 |
F-Score6
WACC7.46%
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.