REC Limited
REC Limited Fundamental Analysis
REC Limited (RECLTD.BO) shows strong financial fundamentals with a PE ratio of 5.41, profit margin of 29.18%, and ROE of 21.77%. The company generates $590.9B in annual revenue with strong year-over-year growth of 18.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -72.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RECLTD.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakRECLTD.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRECLTD.BO trades at attractive valuation levels.
Growth Score
ExcellentRECLTD.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakRECLTD.BO carries high financial risk with limited liquidity.
Profitability Score
ModerateRECLTD.BO maintains healthy but balanced margins.
Key Financial Metrics
Is RECLTD.BO Expensive or Cheap?
P/E Ratio
RECLTD.BO trades at 5.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RECLTD.BO's PEG of -39.31 indicates potential undervaluation.
Price to Book
The market values REC Limited at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -18.80 times EBITDA. This is generally considered low.
How Well Does RECLTD.BO Make Money?
Net Profit Margin
For every $100 in sales, REC Limited keeps $29.18 as profit after all expenses.
Operating Margin
Core operations generate 37.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.77 in profit for every $100 of shareholder equity.
ROA
REC Limited generates $2.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
REC Limited generates limited operating cash flow of $-221.14B, signaling weaker underlying cash strength.
Free Cash Flow
REC Limited generates weak or negative free cash flow of $-221.80B, restricting financial flexibility.
FCF Per Share
Each share generates $-84.23 in free cash annually.
FCF Yield
RECLTD.BO converts -23.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-39.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RECLTD.BO Stacks Against Its Sector Peers
| Metric | RECLTD.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.41 | 19.09 | Better (Cheaper) |
| ROE | 21.77% | 843.00% | Weak |
| Net Margin | 29.18% | 3730.00% | Weak |
| Debt/Equity | 6.23 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.68 | Weak Liquidity |
| ROA | 2.69% | -21651.00% (disorted) | Weak |
RECLTD.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews REC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.05%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
218.81%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-19.17%
Industry Style: Value, Dividend, Cyclical
Declining