Latest Ratios: P/E Ratio -5.5x · EV/EBITDA N/A · ROE -48.7%. (2004–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $553M | $947M | $387M | $92M | $92M | $48M | $98M | $96M | $21M | $1M | $36M |
| Enterprise Value | $404M | $798M | $381M | $88M | $88M | $47M | $98M | $97M | $21M | $3M | $35M |
| P/E Ratio → | -5.48 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 11.78 | 23.26 | 53.16 | 5.16 | 5.16 | 10.32 | 15.23 | 19.12 | 50.99 | 13.03 | 174.75 |
| P/B Ratio | 1.96 | 3.85 | 7.72 | 2.11 | 2.11 | 0.87 | 1.26 | 18.15 | 13.47 | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 19.59 | 52.35 | 4.94 | 4.94 | 10.27 | 15.17 | 19.46 | 51.82 | 27.80 | 173.64 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 3.1% | 3.1% | -28.0% | 20.6% | 20.6% | -18.1% | 14.4% | 21.4% | 19.4% | -234.7% | 48.0% |
| Operating Margin | -163.5% | -163.5% | -532.8% | -100.2% | -100.2% | -570.0% | -202.2% | -97.5% | -403.5% | -2119.8% | -713.2% |
| Net Profit Margin | -177.0% | -177.0% | -899.2% | -134.9% | -134.9% | -608.3% | -181.8% | -264.7% | -396.6% | -714.7% | -1658.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -48.7% | -48.7% | -139.7% | -48.9% | -48.9% | -42.4% | -28.1% | -389.6% | -238.8% | — | — |
| ROA | -43.8% | -43.8% | -125.6% | -44.0% | -44.0% | -38.5% | -24.2% | -182.5% | -93.9% | -111.0% | -948.0% |
| ROIC | -71.0% | -71.0% | -69.2% | -28.4% | -28.4% | -29.9% | -23.1% | -82.4% | -75.8% | — | — |
| ROCE | -42.9% | -42.9% | -80.5% | -35.2% | -35.2% | -38.6% | -30.0% | -108.4% | -181.9% | — | -812.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.07 | 0.05 | 0.05 | 0.05 | 0.05 | 0.38 | 0.37 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.61 | -0.12 | -0.09 | -0.09 | -0.00 | -0.00 | 0.33 | 0.22 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | -254.53 | -254.53 | -192.71 | -78.13 | -9.82 | -53.89 | -4.46 | -323.72 |
Net cash position: cash ($168M) exceeds total debt ($18M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 15.29 | 15.29 | 6.17 | 6.13 | 6.13 | 7.94 | 10.23 | 0.35 | 0.38 | 0.76 | 14.51 |
| Quick Ratio | 13.71 | 13.71 | 2.92 | 3.94 | 3.94 | 5.74 | 9.52 | 0.27 | 0.29 | 0.78 | 14.51 |
| Cash Ratio | 11.31 | 11.31 | 2.19 | 1.66 | 1.66 | 3.95 | 8.99 | 0.06 | 0.29 | 0.65 | 6.54 |
| Asset Turnover | — | 0.15 | 0.13 | 0.37 | 0.37 | 0.08 | 0.08 | 0.43 | 0.14 | 0.17 | 0.35 |
| Inventory Turnover | 1.68 | 1.68 | 0.68 | 1.77 | 1.77 | 0.61 | 1.41 | 10.85 | 4.14 | — | — |
| Days Sales Outstanding | — | 234.39 | 24.55 | 133.30 | 133.30 | 68.84 | 51.84 | 28.96 | — | 386.66 | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $119M | $77M | $60M | $60M | $54M | $48M | $24M | $14M | $285346 | $34970 |
Includes 30+ ratios · 23 years · Updated daily
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Quick answers to the most common questions about buying RCAT stock.
Red Cat Holdings, Inc.'s current P/E ratio is -5.5x. The historical average is 1.7x.
Red Cat Holdings, Inc.'s return on equity (ROE) is -48.7%. The historical average is -98.7%.
Based on historical data, Red Cat Holdings, Inc. is trading at a P/E of -5.5x. Compare with industry peers and growth rates for a complete picture.
Red Cat Holdings, Inc. has 3.1% gross margin and -163.5% operating margin.
Key Metrics
Top Statement Risk
Gross margin sustainability and execution
Metrics are mathematically derived from official filings.
Gross Margin Stuck Near Zero
Despite 459.8% YoY revenue growth, TTM gross margin is only 3.1%, and operating margin is -163.5%, indicating that scale has not yet translated into profitability, per reported financials.
The latest quarter's gross margin of 12.7% is an improvement from the negative margins of 2025, but the TTM figure remains near zero, suggesting that manufacturing efficiencies are still elusive. Operating margin of -176.5% in 2027Q1 shows that SG&A and R&D costs are expanding faster than revenue, with no operating leverage yet. This implies that the company's cost structure is not yet aligned with its revenue scale, and investors should monitor whether the gross margin improvement is sustainable or a one-off from product mix.
ROIC Deeply Negative, No Compounding
ROIC has hovered between -7.5% and -22.0% over the last ten quarters, with 2027Q1 at -21.6%, indicating that the company is destroying value on invested capital, as per financial statements.
The negative ROIC is driven by persistent operating losses and a growing capital base, with no sign of improvement despite revenue growth. The company's return on equity is also deeply negative at -10.8% in 2027Q1, reflecting the erosion of shareholder value. This suggests that the business is not yet generating returns that cover its cost of capital, and the recent capital raise has not been deployed efficiently enough to turn the tide.
Working Capital Cycle Stretched
Cash conversion cycle worsened to 296 days in 2027Q1 from 128 days in 2026Q3, driven by a spike in days inventory outstanding to 288, as reported in the latest quarterly data.
The sharp increase in DIO suggests that RCAT is building inventory ahead of anticipated orders, but the sequential revenue decline in 2027Q1 raises concerns about demand visibility. DSO improved to 49 days from 56 days, but the overall CCC remains elevated, indicating that cash is tied up in working capital. This is particularly concerning given the company's negative operating cash flow, as it implies that growth is consuming cash rather than generating it.
Minimal Debt, But Cash Burn Looms
Debt-to-equity is a low 0.06, and total debt fell to $13.4M in 2027Q1, but operating cash outflow of $78.7M in the same quarter suggests the cash buffer may be consumed quickly, per balance sheet data.
The conservative leverage profile provides a cushion, but the accelerating cash burn—cumulative operating cash outflows of $193.5M over ten quarters—exceeds net losses, indicating a persistent cash conversion gap. With $131.9M in cash, the company has a runway, but at the current burn rate, it may need to raise additional capital within a few quarters. The low debt level is a positive, but it does not offset the operational losses that are driving the cash consumption.
Liquidity Buffer Ample but Temporary
Current ratio stands at 10.99 in 2027Q1, with $131.9M in cash, but the quarterly operating cash outflow of $78.7M implies a limited runway, as per cash flow data.
The high current ratio is misleading because it is driven by a large cash balance that is being depleted rapidly. The quick ratio of 7.70 is also strong, but the underlying cash burn suggests that this liquidity is not sustainable. If the company continues to consume cash at the 2027Q1 pace, the cash balance could be significantly reduced within two to three quarters, potentially forcing dilutive financing.
Gross Margin Misapplied as Scalability Signal
The most misapplied ratio is gross margin, as the 3.1% TTM figure may be misinterpreted as a temporary scaling issue, but it could reflect a structural cost floor from NDAA-compliant components, per reported data.
Analysts often use gross margin to gauge operating leverage, but for RCAT, the low margin may be a permanent feature of domestic manufacturing with high-cost components. The improvement to 12.7% in 2027Q1 is encouraging, but it is still far below the levels needed to cover SG&A and R&D. Instead of focusing solely on gross margin, investors should track contribution margin after variable costs and the company's ability to shift toward higher-margin software revenue, which is not yet evident in the financials.