RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - EBR:RECT - BE0003656676 - Common Stock
8.54 EUR
-0.14 (-1.61%)
Overall RECT gets a fundamental rating of 4 out of 10. We evaluated RECT 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.
In the past year RECT had a positive cash flow from operations.
RECT had positive earnings in each of the past 5 years.
RECT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.62%, RECT is doing worse than 60.00% of the companies in the same industry.
RECT has a worse Return On Equity (2.64%) than 60.00% of its industry peers.
With a Return On Invested Capital value of 3.12%, RECT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for RECT is significantly below the industry average of 10.26%.
The 3 year average ROIC (2.83%) for RECT is below the current ROIC(3.12%), indicating increased profibility in the last year.
| 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
The Profit Margin of RECT (1.74%) is worse than 60.00% of its industry peers.
RECT's Profit Margin has declined in the last couple of years.
The Operating Margin of RECT (3.39%) is worse than 70.00% of its industry peers.
RECT's Operating Margin has declined in the last couple of years.
RECT has a Gross Margin of 16.66%. This is amonst the worse of the industry: RECT underperforms 90.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RECT 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
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.
Looking at the Altman-Z score, with a value of 2.67, RECT is in the better half of the industry, outperforming 70.00% 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.
With a decent Debt to FCF ratio value of 3.17, RECT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
RECT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RECT (0.10) is better than 95.00% 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.
The Current ratio of RECT (1.91) is better than 80.00% of its industry peers.
A Quick Ratio of 1.52 indicates that RECT should not have too much problems paying its short term obligations.
RECT has a better Quick ratio (1.52) than 85.00% of its industry peers.
| 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.
RECT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.42% yearly.
The Revenue has grown by 15.10% in the past year. This is quite good.
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 23.80% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 40.67, which means the current valuation is very expensive for RECT.
The rest of the industry has a similar Price/Earnings ratio as RECT.
When comparing the Price/Earnings ratio of RECT to the average of the S&P500 Index (25.89), we can say RECT is valued expensively.
A Price/Forward Earnings ratio of 17.30 indicates a rather expensive valuation of RECT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RECT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RECT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.67 | ||
| Fwd PE | 17.3 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as RECT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.69 | ||
| EV/EBITDA | 8.18 |
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 2.50%.
Compared to an average industry Dividend Yield of 4.34, RECT pays a bit more dividend than its industry peers.
RECT's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of RECT is nicely growing with an annual growth rate of 8.91%!
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.
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 (11/14/2025, 7:00:00 PM)
8.54
-0.14 (-1.61%)
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 Cap484.47M
Revenue(TTM)646.78M
Net Income(TTM)11.22M
Analysts78.33
Price Target13.1 (53.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)1.77%
PT rev (3m)-5.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-15.32%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.67 | ||
| Fwd PE | 17.3 | ||
| P/S | 0.75 | ||
| P/FCF | 29.69 | ||
| P/OCF | 11.95 | ||
| P/B | 1.14 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.21
EY2.46%
EPS(NY)0.49
Fwd EY5.78%
FCF(TTM)0.29
FCFY3.37%
OCF(TTM)0.71
OCFY8.37%
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 4 / 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 5 / 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.