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RECTICEL (RECT.BR) Stock Fundamental Analysis

EBR:RECT - Euronext Brussels - BE0003656676 - Common Stock - Currency: EUR

11.24  -0.04 (-0.35%)

Fundamental Rating

4

RECT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Building Products industry. RECT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, RECT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year RECT was profitable.
In the past year RECT had a positive cash flow from operations.
RECT.BR Yearly Net Income VS EBIT VS OCF VS FCFRECT.BR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 20M -20M 40M 60M 80M 100M

1.2 Ratios

RECT's Return On Assets of 1.10% is in line compared to the rest of the industry. RECT outperforms 50.00% of its industry peers.
RECT has a Return On Equity of 1.79%. This is comparable to the rest of the industry: RECT outperforms 44.44% of its industry peers.
RECT has a worse Return On Invested Capital (2.69%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RECT is below the industry average of 6.98%.
Industry RankSector 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
RECT.BR Yearly ROA, ROE, ROICRECT.BR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 5 10 15

1.3 Margins

RECT has a Profit Margin (1.37%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RECT has declined.
With a Operating Margin value of 3.51%, RECT is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
RECT's Operating Margin has improved in the last couple of years.
RECT's Gross Margin of 17.57% is on the low side compared to the rest of the industry. RECT is outperformed by 83.33% of its industry peers.
RECT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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
RECT.BR Yearly Profit, Operating, Gross MarginsRECT.BR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 5 10 15

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RECT is destroying value.
Compared to 1 year ago, RECT has about the same amount of shares outstanding.
Compared to 1 year ago, RECT has an improved debt to assets ratio.
RECT.BR Yearly Shares OutstandingRECT.BR Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 10M 20M 30M 40M 50M
RECT.BR Yearly Total Debt VS Total AssetsRECT.BR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

RECT has an Altman-Z score of 2.86. 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 2.86, RECT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that RECT is not too dependend on debt financing.
RECT has a better Debt to Equity ratio (0.11) than 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z 2.86
ROIC/WACC0.4
WACC6.8%
RECT.BR Yearly LT Debt VS Equity VS FCFRECT.BR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

RECT has a Current Ratio of 2.04. This indicates that RECT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RECT (2.04) is better than 88.89% of its industry peers.
A Quick Ratio of 1.64 indicates that RECT should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.64, RECT belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 1.64
RECT.BR Yearly Current Assets VS Current LiabilitesRECT.BR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 200M 400M 600M

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4

3. Growth

3.1 Past

The earnings per share for RECT have decreased strongly by -72.77% in the last year.
Measured over the past years, RECT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -64.73% on average per year.
The Revenue has been growing slightly by 1.56% in the past year.
The Revenue has been decreasing by -4.97% on average over the past years.
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

RECT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 104.19% yearly.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y348.65%
EPS Next 2Y163.04%
EPS Next 3Y104.19%
EPS Next 5YN/A
Revenue Next Year15.09%
Revenue Next 2Y11.06%
Revenue Next 3Y9.69%
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 accelerating: in the next years the growth will be better than in the last years.
RECT.BR Yearly Revenue VS EstimatesRECT.BR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
RECT.BR Yearly EPS VS EstimatesRECT.BR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 80.29, RECT can be considered very expensive at the moment.
RECT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RECT is valued quite expensively.
With a Price/Forward Earnings ratio of 21.52, RECT is valued on the expensive side.
RECT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RECT is around the same levels.
Industry RankSector Rank
PE 80.29
Fwd PE 21.52
RECT.BR Price Earnings VS Forward Price EarningsRECT.BR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

66.67% of the companies in the same industry are cheaper than RECT, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.36
RECT.BR Per share dataRECT.BR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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 104.19% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y163.04%
EPS Next 3Y104.19%

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4

5. Dividend

5.1 Amount

RECT has a Yearly Dividend Yield of 1.92%. 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 2.35.
Compared to an average S&P500 Dividend Yield of 2.33, RECT has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.92%

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
RECT.BR Yearly Dividends per shareRECT.BR Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

224.75% 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.
DP224.75%
EPS Next 2Y163.04%
EPS Next 3Y104.19%
RECT.BR Yearly Income VS Free CF VS DividendRECT.BR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 0 20M -20M 40M 60M 80M 100M
RECT.BR Dividend Payout.RECT.BR Dividend Payout, showing the Payout Ratio.RECT.BR Dividend Payout.PayoutRetained Earnings

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RECTICEL

EBR:RECT (3/7/2025, 7:00:00 PM)

11.24

-0.04 (-0.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)03-04 2025-03-04/amc
Earnings (Next)04-29 2025-04-29
Inst Owners25.28%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap636.30M
Analysts78.33
Price Target13.84 (23.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.92%
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)0%
PT rev (3m)-1.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.64%
Valuation
Industry RankSector Rank
PE 80.29
Fwd PE 21.52
P/S 1.13
P/FCF N/A
P/OCF 135.64
P/B 1.48
P/tB 2.33
EV/EBITDA 12.36
EPS(TTM)0.14
EY1.25%
EPS(NY)0.52
Fwd EY4.65%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)0.08
OCFY0.74%
SpS9.93
BVpS7.6
TBVpS4.83
PEG (NY)0.23
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.86
F-Score2
WACC6.8%
ROIC/WACC0.4
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 2Y163.04%
EPS Next 3Y104.19%
EPS Next 5YN/A
Revenue 1Y (TTM)1.56%
Revenue growth 3Y-4.97%
Revenue growth 5YN/A
Sales Q2Q%12.21%
Revenue Next Year15.09%
Revenue Next 2Y11.06%
Revenue Next 3Y9.69%
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