RECTICEL (RECT.BR) Stock Fundamental Analysis
EBR:RECT - Euronext Brussels - BE0003656676 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to RECT. RECT was compared to 18 industry peers in the Building Products industry. While RECT seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, RECT is valued expensive at the moment.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.10%, RECT is doing worse than 64.71% of the companies in the same industry.
With a Return On Equity value of 1.79%, RECT is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 2.69%, RECT is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for RECT is below the industry average of 7.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.79% | ||
| ROIC | 2.69% |
ROA(3y)3.82%
ROA(5y)N/A
ROE(3y)9.57%
ROE(5y)N/A
ROIC(3y)3.05%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RECT (1.37%) is comparable to the rest of the industry.
RECT's Profit Margin has declined in the last couple of years.
RECT's Operating Margin of 3.51% is on the low side compared to the rest of the industry. RECT is outperformed by 76.47% of its industry peers.
RECT's Operating Margin has improved in the last couple of years.
RECT has a Gross Margin of 17.57%. This is amonst the worse of the industry: RECT underperforms 94.12% of its industry peers.
In the last couple of years the Gross Margin of RECT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.51% | ||
| PM (TTM) | 1.37% | ||
| GM | 17.57% |
OM growth 3Y16.44%
OM growth 5YN/A
PM growth 3Y-60.62%
PM growth 5YN/A
GM growth 3Y-0.53%
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 remains at a similar level compared to 1 year ago.
The debt/assets ratio for RECT has been reduced compared to a year ago.
2.2 Solvency
RECT has an Altman-Z score of 2.69. 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 (2.69) is better than 82.35% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that RECT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, RECT belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.69 |
ROIC/WACC0.42
WACC6.47%
2.3 Liquidity
A Current Ratio of 2.04 indicates that RECT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.04, RECT belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
RECT has a Quick Ratio of 1.64. 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 (1.64) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for RECT have decreased strongly by -72.77% in the last year.
RECT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -64.73% yearly.
The Revenue has been growing slightly by 1.56% in the past year.
RECT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.97% yearly.
EPS 1Y (TTM)-72.77%
EPS 3Y-64.73%
EPS 5YN/A
EPS Q2Q%266.67%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y-4.97%
Revenue growth 5YN/A
Sales Q2Q%12.21%
3.2 Future
Based on estimates for the next years, RECT will show a very strong growth in Earnings Per Share. The EPS will grow by 104.62% on average per year.
RECT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.56% yearly.
EPS Next Y348.65%
EPS Next 2Y163.55%
EPS Next 3Y104.62%
EPS Next 5YN/A
Revenue Next Year14.91%
Revenue Next 2Y10.96%
Revenue Next 3Y9.56%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RECT is valuated quite expensively with a Price/Earnings ratio of 68.43.
RECT's Price/Earnings ratio is a bit more expensive when compared to the industry. RECT is more expensive than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, RECT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 18.27, the valuation of RECT can be described as rather expensive.
70.59% of the companies in the same industry are cheaper than RECT, based on the Price/Forward Earnings ratio.
RECT is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.43 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
RECT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RECT is more expensive than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
RECT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RECT's earnings are expected to grow with 104.62% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y163.55%
EPS Next 3Y104.62%
5. Dividend
5.1 Amount
RECT has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
RECT's Dividend Yield is comparable with the industry average which is at 2.63.
Compared to an average S&P500 Dividend Yield of 2.28, RECT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 Years1
5.3 Sustainability
224.75% 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.
DP224.75%
EPS Next 2Y163.55%
EPS Next 3Y104.62%
RECTICEL
EBR:RECT (2/5/2025, 4:17:41 PM)
9.58
-0.3 (-3.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners25.22%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap541.27M
Analysts78.33
Price Target13.84 (44.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend0.31
Dividend Growth(5Y)8.91%
DP224.75%
Div Incr Years0
Div Non Decr Years1
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)-1.21%
PT rev (3m)-1.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.43 | ||
| Fwd PE | 18.27 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 115.38 | ||
| P/B | 1.26 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)0.14
EY1.46%
EPS(NY)0.52
Fwd EY5.47%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)0.08
OCFY0.87%
SpS9.95
BVpS7.62
TBVpS4.84
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 1.79% | ||
| ROCE | 3.59% | ||
| ROIC | 2.69% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 5.32% | ||
| OM | 3.51% | ||
| PM (TTM) | 1.37% | ||
| GM | 17.57% | ||
| FCFM | N/A |
ROA(3y)3.82%
ROA(5y)N/A
ROE(3y)9.57%
ROE(5y)N/A
ROIC(3y)3.05%
ROIC(5y)N/A
ROICexc(3y)3.84%
ROICexc(5y)N/A
ROICexgc(3y)5.12%
ROICexgc(5y)N/A
ROCE(3y)4.38%
ROCE(5y)N/A
ROICexcg growth 3Y37.95%
ROICexcg growth 5YN/A
ROICexc growth 3Y19.71%
ROICexc growth 5YN/A
OM growth 3Y16.44%
OM growth 5YN/A
PM growth 3Y-60.62%
PM growth 5YN/A
GM growth 3Y-0.53%
GM growth 5YN/A
F-Score2
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 104.19% | ||
| Cap/Sales | 5.01% | ||
| Interest Coverage | 19.83 | ||
| Cash Conversion | 10.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 2.69 |
F-Score2
WACC6.47%
ROIC/WACC0.42
Cap/Depr(3y)64.53%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.43%
Cap/Sales(5y)N/A
Profit Quality(3y)338.26%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.77%
EPS 3Y-64.73%
EPS 5YN/A
EPS Q2Q%266.67%
EPS Next Y348.65%
EPS Next 2Y163.55%
EPS Next 3Y104.62%
EPS Next 5YN/A
Revenue 1Y (TTM)1.56%
Revenue growth 3Y-4.97%
Revenue growth 5YN/A
Sales Q2Q%12.21%
Revenue Next Year14.91%
Revenue Next 2Y10.96%
Revenue Next 3Y9.56%
Revenue Next 5YN/A
EBIT growth 1Y-15.89%
EBIT growth 3Y10.65%
EBIT growth 5YN/A
EBIT Next Year287.3%
EBIT Next 3Y76.62%
EBIT Next 5YN/A
FCF growth 1Y8.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.94%
OCF growth 3Y146.1%
OCF growth 5YN/A