RECTICEL (REC.BR) Stock Fundamental Analysis
Europe - EBR:REC - BE0003656676 - Common Stock
16.44 EUR
-0.18 (-1.08%)
Overall REC gets a fundamental rating of 3 out of 10. We evaluated REC against 67 industry peers in the Chemicals industry. REC may be in some trouble as it scores bad on both profitability and health. REC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year REC was profitable.
REC had a positive operating cash flow in the past year.
1.2 Ratios
With a Return On Assets value of 5.32%, REC perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
The Return On Equity of REC (14.48%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.03%, REC is doing worse than 68.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REC is below the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 14.48% | ||
| ROIC | 4.03% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.21%
ROIC(5y)N/A
1.3 Margins
REC's Profit Margin of 8.47% is fine compared to the rest of the industry. REC outperforms 60.66% of its industry peers.
REC's Profit Margin has improved in the last couple of years.
The Operating Margin of REC (5.88%) is worse than 65.57% of its industry peers.
REC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.71%, REC is not doing good in the industry: 80.33% of the companies in the same industry are doing better.
REC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.88% | ||
| PM (TTM) | 8.47% | ||
| GM | 17.71% |
OM growth 3Y1.38%
OM growth 5Y9.26%
PM growth 3Y26.15%
PM growth 5Y27.18%
GM growth 3Y0.19%
GM growth 5Y-1.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so REC is destroying value.
REC has more shares outstanding than it did 1 year ago.
The debt/assets ratio for REC is higher compared to a year ago.
2.2 Solvency
REC has an Altman-Z score of 2.03. This is not the best score and indicates that REC is in the grey zone with still only limited risk for bankruptcy at the moment.
REC's Altman-Z score of 2.03 is on the low side compared to the rest of the industry. REC is outperformed by 70.49% of its industry peers.
REC has a debt to FCF ratio of 6.94. This is a slightly negative value and a sign of low solvency as REC would need 6.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.94, REC is in line with its industry, outperforming 57.38% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that REC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, REC perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.94 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.49
WACC8.3%
2.3 Liquidity
REC has a Current Ratio of 1.66. This is a normal value and indicates that REC is financially healthy and should not expect problems in meeting its short term obligations.
REC has a Current ratio (1.66) which is comparable to the rest of the industry.
A Quick Ratio of 1.54 indicates that REC should not have too much problems paying its short term obligations.
REC's Quick ratio of 1.54 is fine compared to the rest of the industry. REC outperforms 75.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 109.47% over the past year.
REC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.28% yearly.
REC shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.53%.
Measured over the past years, REC shows a decrease in Revenue. The Revenue has been decreasing by -0.30% on average per year.
EPS 1Y (TTM)109.47%
EPS 3Y22%
EPS 5Y28.28%
EPS Q2Q%22.6%
Revenue 1Y (TTM)50.53%
Revenue growth 3Y-2.6%
Revenue growth 5Y-0.3%
Sales Q2Q%19.44%
3.2 Future
The Earnings Per Share is expected to decrease by -12.68% on average over the next years. This is quite bad
The Revenue is expected to decrease by -18.60% on average over the next years. This is quite bad
EPS Next Y-51.26%
EPS Next 2Y-23.46%
EPS Next 3Y-12.68%
EPS Next 5YN/A
Revenue Next Year-50.8%
Revenue Next 2Y-27.78%
Revenue Next 3Y-18.6%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.51, REC is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as REC.
When comparing the Price/Earnings ratio of REC to the average of the S&P500 Index (25.91), we can say REC is valued slightly cheaper.
A Price/Forward Earnings ratio of 25.43 indicates a quite expensive valuation of REC.
Based on the Price/Forward Earnings ratio, REC is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
REC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REC indicates a slightly more expensive valuation: REC is more expensive than 63.93% of the companies listed in the same industry.
REC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REC is cheaper than 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
REC's earnings are expected to decrease with -12.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-23.46%
EPS Next 3Y-12.68%
5. Dividend
5.1 Amount
REC has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 3.26, REC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, REC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of REC is nicely growing with an annual growth rate of 6.51%!
Dividend Growth(5Y)6.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.96% of the earnings are spent on dividend by REC. This is a low number and sustainable payout ratio.
DP26.96%
EPS Next 2Y-23.46%
EPS Next 3Y-12.68%
EBR:REC (2/10/2023, 7:00:00 PM)
16.44
-0.18 (-1.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap918.69M
Revenue(TTM)710.95M
Net Income(TTM)60.19M
Analysts82.5
Price Target20.15 (22.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.2
Dividend Growth(5Y)6.51%
DP26.96%
Div Incr Years0
Div Non Decr Years0
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)0.64%
PT rev (3m)-11.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 25.43 | ||
| P/S | 1.29 | ||
| P/FCF | 19.82 | ||
| P/OCF | 15.99 | ||
| P/B | 2.21 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 14.34 |
EPS(TTM)1.06
EY6.45%
EPS(NY)0.65
Fwd EY3.93%
FCF(TTM)0.83
FCFY5.04%
OCF(TTM)1.03
OCFY6.25%
SpS12.72
BVpS7.44
TBVpS4.95
PEG (NY)N/A
PEG (5Y)0.55
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 14.48% | ||
| ROCE | N/A | ||
| ROIC | 4.03% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 5.75% | ||
| OM | 5.88% | ||
| PM (TTM) | 8.47% | ||
| GM | 17.71% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.21%
ROIC(5y)N/A
ROICexc(3y)3.88%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-12.19%
ROICexgc growth 5Y0.46%
ROICexc growth 3Y-12.11%
ROICexc growth 5Y0.68%
OM growth 3Y1.38%
OM growth 5Y9.26%
PM growth 3Y26.15%
PM growth 5Y27.18%
GM growth 3Y0.19%
GM growth 5Y-1.11%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.94 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 41.52% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 77.01% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 2.03 |
F-Score7
WACC8.3%
ROIC/WACC0.49
Cap/Depr(3y)65.46%
Cap/Depr(5y)115.71%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)109.47%
EPS 3Y22%
EPS 5Y28.28%
EPS Q2Q%22.6%
EPS Next Y-51.26%
EPS Next 2Y-23.46%
EPS Next 3Y-12.68%
EPS Next 5YN/A
Revenue 1Y (TTM)50.53%
Revenue growth 3Y-2.6%
Revenue growth 5Y-0.3%
Sales Q2Q%19.44%
Revenue Next Year-50.8%
Revenue Next 2Y-27.78%
Revenue Next 3Y-18.6%
Revenue Next 5YN/A
EBIT growth 1Y66.27%
EBIT growth 3Y-1.26%
EBIT growth 5Y8.93%
EBIT Next Year-11.9%
EBIT Next 3Y1.28%
EBIT Next 5YN/A
FCF growth 1Y197.63%
FCF growth 3Y128.78%
FCF growth 5YN/A
OCF growth 1Y2748.69%
OCF growth 3Y25.25%
OCF growth 5Y21.56%
RECTICEL / REC.BR FAQ
What is the ChartMill fundamental rating of RECTICEL (REC.BR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to REC.BR.
What is the valuation status for REC stock?
ChartMill assigns a valuation rating of 3 / 10 to RECTICEL (REC.BR). This can be considered as Overvalued.
How profitable is RECTICEL (REC.BR) stock?
RECTICEL (REC.BR) has a profitability rating of 4 / 10.
What are the PE and PB ratios of RECTICEL (REC.BR) stock?
The Price/Earnings (PE) ratio for RECTICEL (REC.BR) is 15.51 and the Price/Book (PB) ratio is 2.21.
What is the earnings growth outlook for RECTICEL?
The Earnings per Share (EPS) of RECTICEL (REC.BR) is expected to decline by -51.26% in the next year.