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 20 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.
In the past year RECT had a positive cash flow from operations.
Each year in the past 5 years RECT has been profitable.
In the past 5 years RECT always reported a positive cash flow from operatings.
1.2 Ratios
RECT has a Return On Assets of 2.58%. This is comparable to the rest of the industry: RECT outperforms 55.00% of its industry peers.
RECT's Return On Equity of 4.09% is in line compared to the rest of the industry. RECT outperforms 45.00% of its industry peers.
RECT has a worse Return On Invested Capital (2.62%) than 65.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RECT is significantly below the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.09% | ||
| ROIC | 2.62% |
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's Profit Margin of 2.97% is in line compared to the rest of the industry. RECT outperforms 55.00% of its industry peers.
RECT's Profit Margin has declined in the last couple of years.
RECT has a worse Operating Margin (3.20%) than 65.00% of its industry peers.
RECT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.13%, RECT is doing worse than 85.00% of the companies in the same industry.
RECT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 2.97% | ||
| GM | 17.13% |
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.
RECT has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, RECT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.90 indicates that RECT is not a great score, but indicates only limited risk for bankruptcy at the moment.
RECT has a Altman-Z score of 2.90. This is in the better half of the industry: RECT outperforms 75.00% 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.
With an excellent Debt to Equity ratio value of 0.10, RECT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.9 |
ROIC/WACC0.35
WACC7.43%
2.3 Liquidity
A Current Ratio of 2.12 indicates that RECT has no problem at all paying its short term obligations.
The Current ratio of RECT (2.12) is better than 85.00% of its industry peers.
RECT has a Quick Ratio of 1.74. This is a normal value and indicates that RECT is financially healthy and should not expect problems in meeting its short term obligations.
RECT has a better Quick ratio (1.74) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 395.96% over the past year.
The earnings per share for RECT have been decreasing by -30.42% on average. This is quite bad
The Revenue has grown by 15.26% in the past year. This is quite good.
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)395.96%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%509.04%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%18.33%
3.2 Future
RECT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.52% yearly.
RECT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.29% yearly.
EPS Next Y36.63%
EPS Next 2Y30.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.81%
Revenue Next 2Y7.47%
Revenue Next 3Y8.29%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.94, RECT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RECT is on the same level as its industry peers.
RECT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.32, RECT is valued on the expensive side.
RECT's Price/Forward Earnings is on the same level as the industry average.
RECT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 21.32 |
4.2 Price Multiples
RECT's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RECT's earnings are expected to grow with 30.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3YN/A
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.
Compared to an average industry Dividend Yield of 4.16, RECT has a dividend in line with its industry peers.
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 | 2.14% |
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 Years2
5.3 Sustainability
RECT pays out 95.65% 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.
DP95.65%
EPS Next 2Y30.52%
EPS Next 3YN/A
EBR:RECT (6/30/2025, 7:00:00 PM)
10.22
+0.02 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners23.28%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap578.96M
Analysts78.33
Price Target13.86 (35.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend0.31
Dividend Growth(5Y)8.91%
DP95.65%
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)-1.09%
PT rev (3m)-1.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 21.32 | ||
| P/S | 0.95 | ||
| P/FCF | N/A | ||
| P/OCF | 26.2 | ||
| P/B | 1.31 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)0.32
EY3.13%
EPS(NY)0.48
Fwd EY4.69%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.39
OCFY3.82%
SpS10.77
BVpS7.83
TBVpS5.13
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.09% | ||
| ROCE | 3.5% | ||
| ROIC | 2.62% | ||
| ROICexc | 3.45% | ||
| ROICexgc | 5.4% | ||
| OM | 3.2% | ||
| PM (TTM) | 2.97% | ||
| GM | 17.13% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y8.33%
ROICexcg 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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 92.91% | ||
| Cap/Sales | 4.67% | ||
| Interest Coverage | 12.16 | ||
| Cash Conversion | 44.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 2.9 |
F-Score6
WACC7.43%
ROIC/WACC0.35
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)395.96%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%509.04%
EPS Next Y36.63%
EPS Next 2Y30.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.26%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%18.33%
Revenue Next Year8.81%
Revenue Next 2Y7.47%
Revenue Next 3Y8.29%
Revenue Next 5YN/A
EBIT growth 1Y22.47%
EBIT growth 3Y-16.01%
EBIT growth 5YN/A
EBIT Next Year181.95%
EBIT Next 3Y56.68%
EBIT Next 5YN/A
FCF growth 1Y-124.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.87%
OCF growth 3Y-41.91%
OCF growth 5YN/A