RCATRed Cat Holdings, Inc.

$8.93

Is the business good?

How good a business is RCAT?

Red Cat Holdings, Inc. earns −60% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

−60%

Return on invested capital · cost of capital 9.0% · 69 points below what the capital costs: growth destroys value

Operating margin
−149%

Operating margin · Aerospace & Defense median 9.6% · 12 months to Q1 2027

Share count, year on year
+41%

Share count, year on year · shareholders own a smaller slice than a year ago

R&D as % of revenue
41%

R&D as % of revenue

Operating margin by fiscal year
YearOperating margin
FY2020−411%
FY2021−98%
FY2022−202%
FY2023−570%
FY2024−108%
FY2026−164%
Details
Gross margin12 months to Q1 2027
7.5%
Operating margin12 months to Q1 2027
−149%
Net margin12 months to Q1 2027
−138%
R&D as % of revenue
41%
Revenue, trailing twelve months
$55M
Net income, trailing twelve months
−$76M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
−60%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.