Red Cat Holdings, Inc.
Red Cat Holdings, Inc. Fundamental Analysis
Red Cat Holdings, Inc. (RCAT) shows weak financial fundamentals with a PE ratio of -18.22, profit margin of -4.36%, and ROE of -68.15%. The company generates $0.0B in annual revenue with weak year-over-year growth of 2.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -346.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCAT's fundamental strength across five key dimensions:
Efficiency Score
WeakRCAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRCAT trades at attractive valuation levels.
Growth Score
ModerateRCAT shows steady but slowing expansion.
Financial Health Score
ExcellentRCAT maintains a strong and stable balance sheet.
Profitability Score
WeakRCAT struggles to sustain strong margins.
Key Financial Metrics
Is RCAT Expensive or Cheap?
P/E Ratio
RCAT trades at -18.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RCAT's PEG of -15.12 indicates potential undervaluation.
Price to Book
The market values Red Cat Holdings, Inc. at 4.96 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -28.16 times EBITDA. This is generally considered low.
How Well Does RCAT Make Money?
Net Profit Margin
For every $100 in sales, Red Cat Holdings, Inc. keeps $-4.36 as profit after all expenses.
Operating Margin
Core operations generate -3.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-68.15 in profit for every $100 of shareholder equity.
ROA
Red Cat Holdings, Inc. generates $-24.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Red Cat Holdings, Inc. generates limited operating cash flow of $-56.56M, signaling weaker underlying cash strength.
Free Cash Flow
Red Cat Holdings, Inc. generates weak or negative free cash flow of $-57.70M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.64 in free cash annually.
FCF Yield
RCAT converts -5.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-18.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-15.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
71.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.68
vs 25 benchmark
ROA
Return on assets percentage
-0.24
vs 25 benchmark
ROCE
Return on capital employed
-0.19
vs 25 benchmark
How RCAT Stacks Against Its Sector Peers
| Metric | RCAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -18.22 | 34.79 | Better (Cheaper) |
| ROE | -68.15% | 1185.00% | Weak |
| Net Margin | -435.69% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.09 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 10.42 | 4.90 | Strong Liquidity |
| ROA | -24.11% | -324805.00% (disorted) | Weak |
RCAT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Red Cat Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.57%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
85.20%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
88.61%
Industry Style: Growth, Innovation, High Beta
High Growth