RECTICEL (RECT.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RECT - BE0003656676 - Common Stock
8.91 EUR
+0.13 (+1.48%)
We assign a fundamental rating of 5 out of 10 to RECT. RECT was compared to 26 industry peers in the Building Products industry. The financial health of RECT is average, but there are quite some concerns on its profitability. RECT shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year RECT was profitable.
RECT had a positive operating cash flow in the past year.
Each year in the past 5 years RECT has been profitable.
RECT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RECT's Return On Assets of 1.62% is on the low side compared to the rest of the industry. RECT is outperformed by 61.54% of its industry peers.
RECT's Return On Equity of 2.64% is on the low side compared to the rest of the industry. RECT is outperformed by 61.54% 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 65.38% of its industry peers.
RECT had an Average Return On Invested Capital over the past 3 years of 2.83%. This is significantly below the industry average of 9.27%.
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
Looking at the Profit Margin, with a value of 1.74%, RECT is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of RECT has declined.
With a Operating Margin value of 3.39%, RECT is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of RECT has declined.
Looking at the Gross Margin, with a value of 16.66%, RECT is doing worse than 84.62% of the companies in the same industry.
RECT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| 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
RECT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RECT has more shares outstanding
Compared to 1 year ago, RECT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that RECT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RECT (2.71) is better than 69.23% of its industry peers.
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 has a Debt to FCF ratio of 3.17. This is in the better half of the industry: RECT outperforms 76.92% 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.
RECT's Debt to Equity ratio of 0.10 is amongst the best of the industry. RECT outperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.42
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.91 indicates that RECT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.91, RECT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
RECT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.77%, which is quite impressive.
The earnings per share for RECT have been decreasing by -30.42% on average. This is quite bad
The Revenue has grown by 15.10% in the past year. This is quite good.
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 23.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, RECT will show a quite strong growth in Revenue. The Revenue will grow by 9.29% on average per year.
EPS Next Y-5.62%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EPS Next 5YN/A
Revenue Next Year10.58%
Revenue Next 2Y8.62%
Revenue Next 3Y9.29%
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.
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
RECT is valuated quite expensively with a Price/Earnings ratio of 42.43.
Compared to the rest of the industry, the Price/Earnings ratio of RECT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RECT to the average of the S&P500 Index (26.15), we can say RECT is valued expensively.
Based on the Price/Forward Earnings ratio of 18.05, the valuation of RECT can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RECT.
The average S&P500 Price/Forward Earnings ratio is at 36.12. RECT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RECT is on the same level as its industry peers.
RECT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
RECT's earnings are expected to grow with 23.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.74%
EPS Next 3Y23.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, RECT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.95, RECT pays a bit more dividend than its industry peers.
RECT's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of RECT is nicely growing with an annual growth rate of 8.91%!
Dividend Growth(5Y)8.91%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
155.43% 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.
DP155.43%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EBR:RECT (11/26/2025, 5:29:32 PM)
8.91
+0.13 (+1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners22.24%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap505.46M
Revenue(TTM)646.78M
Net Income(TTM)11.22M
Analysts78.33
Price Target12.14 (36.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)-5.68%
PT rev (3m)-12.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-15.32%
EPS NY rev (3m)-30.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 18.05 | ||
| P/S | 0.78 | ||
| P/FCF | 30.97 | ||
| P/OCF | 12.47 | ||
| P/B | 1.19 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)0.21
EY2.36%
EPS(NY)0.49
Fwd EY5.54%
FCF(TTM)0.29
FCFY3.23%
OCF(TTM)0.71
OCFY8.02%
SpS11.4
BVpS7.49
TBVpS4.84
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.95
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%
ROICexgc growth 3Y8.33%
ROICexgc 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 | 2.71 |
F-Score6
WACC7.43%
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 Y-5.62%
EPS Next 2Y20.74%
EPS Next 3Y23.8%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y10.75%
Revenue growth 5YN/A
Sales Q2Q%12.25%
Revenue Next Year10.58%
Revenue Next 2Y8.62%
Revenue Next 3Y9.29%
Revenue Next 5YN/A
EBIT growth 1Y11.16%
EBIT growth 3Y-16.01%
EBIT growth 5YN/A
EBIT Next Year149.85%
EBIT Next 3Y56.39%
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
RECTICEL / RECT.BR FAQ
Can you provide the ChartMill fundamental rating for RECTICEL?
ChartMill assigns a fundamental rating of 5 / 10 to RECT.BR.
What is the valuation status for RECT stock?
ChartMill assigns a valuation rating of 2 / 10 to RECTICEL (RECT.BR). This can be considered as Overvalued.
What is the profitability of RECT stock?
RECTICEL (RECT.BR) has a profitability rating of 3 / 10.
Can you provide the financial health for RECT stock?
The financial health rating of RECTICEL (RECT.BR) is 6 / 10.
Can you provide the expected EPS growth for RECT stock?
The Earnings per Share (EPS) of RECTICEL (RECT.BR) is expected to decline by -5.62% in the next year.