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RECTICEL (RECT.BR) Stock Fundamental Analysis

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

11.3  -0.04 (-0.35%)

Fundamental Rating

5

Overall RECT gets a fundamental rating of 5 out of 10. We evaluated RECT against 23 industry peers in the Building Products industry. The financial health of RECT is average, but there are quite some concerns on its profitability. RECT is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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3

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.
RECT had positive earnings in each of the past 5 years.
In the past 5 years RECT always reported a positive cash flow from operatings.
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 2024 0 20M -20M 40M 60M 80M 100M

1.2 Ratios

RECT's Return On Assets of 3.53% is in line compared to the rest of the industry. RECT outperforms 52.17% of its industry peers.
RECT has a Return On Equity (5.58%) which is in line with its industry peers.
RECT has a Return On Invested Capital of 2.85%. This is in the lower half of the industry: RECT underperforms 69.57% of its industry peers.
RECT had an Average Return On Invested Capital over the past 3 years of 2.49%. This is significantly below the industry average of 8.30%.
The 3 year average ROIC (2.49%) for RECT is below the current ROIC(2.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.53%
ROE 5.58%
ROIC 2.85%
ROA(3y)2.99%
ROA(5y)4.61%
ROE(3y)6.36%
ROE(5y)10.34%
ROIC(3y)2.49%
ROIC(5y)2.51%
RECT.BR Yearly ROA, ROE, ROICRECT.BR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

RECT has a Profit Margin of 2.72%. This is comparable to the rest of the industry: RECT outperforms 47.83% of its industry peers.
In the last couple of years the Profit Margin of RECT has declined.
With a Operating Margin value of 2.33%, RECT is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
RECT's Operating Margin has declined in the last couple of years.
RECT has a worse Gross Margin (17.46%) than 91.30% of its industry peers.
RECT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.33%
PM (TTM) 2.72%
GM 17.46%
OM growth 3Y-35.7%
OM growth 5YN/A
PM growth 3Y-37.05%
PM growth 5YN/A
GM growth 3Y-3.23%
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 2024 5 10 15

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5

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.
RECT.BR Yearly Shares OutstandingRECT.BR Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 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 2024 200M 400M 600M 800M 1B

2.2 Solvency

RECT has an Altman-Z score of 3.49. This indicates that RECT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RECT (3.49) is better than 86.96% 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.
Looking at the Debt to Equity ratio, with a value of 0.10, RECT belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF N/A
Altman-Z 3.49
ROIC/WACC0.38
WACC7.46%
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 2024 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 2.12 indicates that RECT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.12, RECT belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
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 Quick ratio of 1.74. This is amongst the best in the industry. RECT outperforms 86.96% of its industry peers.
Industry RankSector Rank
Current Ratio 2.12
Quick Ratio 1.74
RECT.BR Yearly Current Assets VS Current LiabilitesRECT.BR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

RECT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 568.74%, which is quite impressive.
RECT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.42% yearly.
Looking at the last year, RECT shows a very strong growth in Revenue. The Revenue has grown by 71.66%.
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)568.74%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%832.94%
Revenue 1Y (TTM)71.66%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%131.74%

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.
Based on estimates for the next years, RECT will show a quite strong growth in Revenue. The Revenue will grow by 8.29% on average per year.
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

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 decreasing: in the next years the growth will be less 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 2027 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

RECT is valuated quite expensively with a Price/Earnings ratio of 26.28.
RECT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.17. RECT is around the same levels.
With a Price/Forward Earnings ratio of 23.57, RECT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RECT is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RECT is around the same levels.
Industry RankSector Rank
PE 26.28
Fwd PE 23.57
RECT.BR Price Earnings VS Forward Price EarningsRECT.BR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RECT is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.92
RECT.BR Per share dataRECT.BR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 30.52% in the coming years.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.95%, RECT has a reasonable but not impressive dividend return.
RECT's Dividend Yield is a higher than the industry average which is at 3.73.
RECT's Dividend Yield is comparable with the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 1.95%

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

70.08% 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.
DP70.08%
EPS Next 2Y30.52%
EPS Next 3YN/A
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 2024 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 (5/29/2025, 3:43:59 PM)

11.3

-0.04 (-0.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)04-29 2025-04-29
Earnings (Next)08-29 2025-08-29
Inst Owners25.28%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap640.14M
Analysts78.33
Price Target14.01 (23.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.95%
Yearly Dividend0.31
Dividend Growth(5Y)8.91%
DP70.08%
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)1.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)1.46%
Valuation
Industry RankSector Rank
PE 26.28
Fwd PE 23.57
P/S 0.7
P/FCF N/A
P/OCF 28.96
P/B 1.44
P/tB 2.2
EV/EBITDA 10.92
EPS(TTM)0.43
EY3.81%
EPS(NY)0.48
Fwd EY4.24%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)0.39
OCFY3.45%
SpS16.04
BVpS7.83
TBVpS5.13
PEG (NY)0.72
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.53%
ROE 5.58%
ROCE 3.8%
ROIC 2.85%
ROICexc 3.75%
ROICexgc 5.87%
OM 2.33%
PM (TTM) 2.72%
GM 17.46%
FCFM N/A
ROA(3y)2.99%
ROA(5y)4.61%
ROE(3y)6.36%
ROE(5y)10.34%
ROIC(3y)2.49%
ROIC(5y)2.51%
ROICexc(3y)3.24%
ROICexc(5y)3.16%
ROICexgc(3y)4.8%
ROICexgc(5y)4.2%
ROCE(3y)3.52%
ROCE(5y)3.54%
ROICexcg growth 3Y-8.14%
ROICexcg growth 5YN/A
ROICexc growth 3Y-18.74%
ROICexc growth 5YN/A
OM growth 3Y-35.7%
OM growth 5YN/A
PM growth 3Y-37.05%
PM growth 5YN/A
GM growth 3Y-3.23%
GM growth 5YN/A
F-Score5
Asset Turnover1.3
Health
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF N/A
Debt/EBITDA 0.89
Cap/Depr 111.08%
Cap/Sales 3.75%
Interest Coverage 13.2
Cash Conversion 42.62%
Profit Quality N/A
Current Ratio 2.12
Quick Ratio 1.74
Altman-Z 3.49
F-Score5
WACC7.46%
ROIC/WACC0.38
Cap/Depr(3y)90.07%
Cap/Depr(5y)73.74%
Cap/Sales(3y)3.97%
Cap/Sales(5y)3.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)568.74%
EPS 3Y-30.42%
EPS 5YN/A
EPS Q2Q%832.94%
EPS Next Y36.63%
EPS Next 2Y30.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)71.66%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%131.74%
Revenue Next Year8.81%
Revenue Next 2Y7.47%
Revenue Next 3Y8.29%
Revenue Next 5YN/A
EBIT growth 1Y33.02%
EBIT growth 3Y-28.79%
EBIT growth 5YN/A
EBIT Next Year181.95%
EBIT Next 3Y56.68%
EBIT Next 5YN/A
FCF growth 1Y-146.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.87%
OCF growth 3Y-41.91%
OCF growth 5YN/A