RCATRed Cat Holdings, Inc.
Is the business good?
Margins widening. That is the only one of 4 checks this filer's data supports, so take it as a single data point rather than a settled answer.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RCAT?
Red Cat Holdings, Inc. earns −58% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 67 points below what the capital costs: growth destroys value
- Operating margin
- −150%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2027
- Share count, year on year
- +50%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 46%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −411% |
| FY2021 | −98% |
| FY2022 | −202% |
| FY2023 | −570% |
| FY2024 | −108% |
| FY2026 | −164% |
Details›
- Gross margin12 months to Q2 2027
- 9.8%
- Operating margin12 months to Q2 2027
- −150%
- Net margin12 months to Q2 2027
- −136%
- R&D as % of revenue
- 46%
- Revenue, trailing twelve months
- $72M
- Net income, trailing twelve months
- −$97M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −58%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.