RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - EBR:RECT - BE0003656676 - Common Stock
9.01 EUR
+0.12 (+1.35%)
We assign a fundamental rating of 5 out of 10 to RECT. RECT was compared to 19 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 expensive, but it does show an excellent growth.
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.
In the past 5 years RECT has always been profitable.
In the past 5 years RECT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.62%, RECT is doing worse than 63.16% of the companies in the same industry.
The Return On Equity of RECT (2.64%) is worse than 63.16% of its industry peers.
RECT has a Return On Invested Capital of 3.12%. This is in the lower half of the industry: RECT underperforms 68.42% 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 9.60%.
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
RECT has a Profit Margin (1.74%) which is in line with its industry peers.
RECT's Profit Margin has declined in the last couple of years.
RECT has a worse Operating Margin (3.39%) than 73.68% of its industry peers.
RECT's Operating Margin has declined in the last couple of years.
The Gross Margin of RECT (16.66%) is worse than 89.47% of its industry peers.
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
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 2.72. 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.
With a decent Altman-Z score value of 2.72, RECT is doing good in the industry, outperforming 68.42% of the companies in the same industry.
The Debt to FCF ratio of RECT is 3.17, which is a good value as it means it would take RECT, 3.17 years of fcf income to pay off all of its debts.
RECT's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. RECT outperforms 78.95% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that RECT is not too dependend on debt financing.
RECT's Debt to Equity ratio of 0.10 is amongst the best of the industry. RECT outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.42
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.91 indicates that RECT should not have too much problems paying its short term obligations.
The Current ratio of RECT (1.91) is better than 84.21% 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 89.47% 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.
RECT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.42% yearly.
RECT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.10%.
Measured over the past years, RECT shows a quite strong growth in Revenue. The Revenue has been growing by 10.75% on average per year.
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
Based on estimates for the next years, RECT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.47% on average per year.
RECT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y36.14%
EPS Next 2Y30.8%
EPS Next 3Y28.47%
EPS Next 5YN/A
Revenue Next Year11.11%
Revenue Next 2Y9.03%
Revenue Next 3Y9.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.90, the valuation of RECT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RECT indicates a slightly more expensive valuation: RECT is more expensive than 63.16% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RECT to the average of the S&P500 Index (27.20), we can say RECT is valued expensively.
RECT is valuated correctly with a Price/Forward Earnings ratio of 15.55.
The rest of the industry has a similar Price/Forward Earnings ratio as RECT.
RECT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.9 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
RECT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RECT is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.3 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
RECT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RECT's earnings are expected to grow with 28.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y30.8%
EPS Next 3Y28.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, RECT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.97, RECT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RECT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 155.43% 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.
DP155.43%
EPS Next 2Y30.8%
EPS Next 3Y28.47%
EBR:RECT (9/18/2025, 5:24:06 PM)
9.01
+0.12 (+1.35%)
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 Cap510.78M
Analysts78.33
Price Target13.55 (50.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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)-2.21%
PT rev (3m)-3.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.83%
EPS NY rev (3m)-3.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.9 | ||
| Fwd PE | 15.55 | ||
| P/S | 0.79 | ||
| P/FCF | 31.3 | ||
| P/OCF | 12.6 | ||
| P/B | 1.2 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.21
EY2.33%
EPS(NY)0.58
Fwd EY6.43%
FCF(TTM)0.29
FCFY3.19%
OCF(TTM)0.72
OCFY7.94%
SpS11.41
BVpS7.49
TBVpS4.84
PEG (NY)1.19
PEG (5Y)N/A
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%
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 Turnover0.93
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 | 2.72 |
F-Score6
WACC7.44%
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 Y36.14%
EPS Next 2Y30.8%
EPS Next 3Y28.47%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%12.25%
Revenue Next Year11.11%
Revenue Next 2Y9.03%
Revenue Next 3Y9.57%
Revenue Next 5YN/A
EBIT growth 1Y11.16%
EBIT growth 3Y-16.01%
EBIT growth 5YN/A
EBIT Next Year181.95%
EBIT Next 3Y56.68%
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