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Red Cat Holdings, Inc. (RCAT) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Red Cat Holdings, Inc.

RCATMarket cap $0.94BPrice $6.2

Country🇺🇸United States

SectorIndustrials

IndustryAerospace & Defense

Builds small military-grade drones for the US Army and defense agencies, positioning itself as a homegrown alternative to Chinese-made systems. Its Teal 2 drone won a coveted Army contract, fueling explosive investor interest despite still-modest revenues.

In Bastion Portfolios?

52W Return-48%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+85%10

Revenue Forecast

Rev CAGR (1y)+271%10

Rev CAGR (3y)+95%10

Rev CAGR (5y)+97%10

Earnings Forecast

EPS Growth Y+1Loss1

EPS Growth Y+2Loss1

EPS Growth Y+3Loss1

Quality

Margins

EBIT Margin-150%1

Net Income Margin-136%1

Free Cash Flow Margin-220%1

Debt

Net Debt/EBITDAna–

Efficiency

ROE-34%1

ROA-30%1

Earnings Stabilityna–

GEAR+VERY WEAK10

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)na–

P/E Ratio (Forward 3y)na–

P/BV2.07

EV Multiples

EV/EBITDA Fwdna–

EV/EBIT Fwdna–

Yield

Free Cash Flow Yield-16.8%1

Dividend Yieldna–

Momentum

Short term

1 month return-29%1

3 month return-33%1

YTD return-22%2

Mid term

Price vs 52wHigh33%1

1 year return-57%1

Long term

3 year return+547%10

5 year return+102%7

Risk Shield

Price Risk

Beta1.61

Volatility107%1

Free Cash Flow

Free Cash Flow Margin-220%1

Free Cash Flow Yield-16.8%1

Quality

ROCE-36%1

Earnings Stabilityna–

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

RCATRed Cat Holdings

Revenue FY25$41M

GROWTH RATING↗

VERY STRONG89 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+85%10

Revenue, next 1Y+271%10

Revenue, next 3Y, CAGR+95%10

Revenue, next 5Y, CAGR+97%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27ELoss1

EPS growth, FY28ELoss1

GROWTH ASSESSMENT

STRENGTHS

It out-grows 89% of companies worldwide.

Revenue grew 85%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

Revenue is set to grow 95%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 85%/yr over the last 3 years and is set to grow 95%/yr from here.

The runway holds up: revenue is set to grow 97%/yr over five years.10/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK15 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-29%1

3-month return-33%1

YTD return-22%2

MID & LONG-TERM▾SCORE

% of 52-week high33%1

1-year return-57%1

3-year return+547%10

5-year return+102%7

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +547% over three years and +102% over five, ahead of 80% of the market.

WATCH

None flagged.

WEAKNESSES

It's down 57% over the past year, now 67% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-29%), over three months (-33%) and so far this year (-22%).

BOTTOM LINE

Outperformer in a Drawdown

A proven multi-year compounder now in a meaningful pullback well below its 52-week high. This is the classic fork: either a buy-the-dip in an intact uptrend, or the early stage of a trend change. Wait for the short-term slide to stabilise before adding. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Red Cat Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

RCATRed Cat Holdings

Revenue FY25$41M

GROWTH RATING↗

VERY STRONG89 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+85%10

Revenue, next 1Y+271%10

Revenue, next 3Y, CAGR+95%10

Revenue, next 5Y, CAGR+97%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27ELoss1

EPS growth, FY28ELoss1

GROWTH ASSESSMENT

STRENGTHS

It out-grows 89% of companies worldwide.

Revenue grew 85%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

Revenue is set to grow 95%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 85%/yr over the last 3 years and is set to grow 95%/yr from here.

The runway holds up: revenue is set to grow 97%/yr over five years.10/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK15 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-29%1

3-month return-33%1

YTD return-22%2

MID & LONG-TERM▾SCORE

% of 52-week high33%1

1-year return-57%1

3-year return+547%10

5-year return+102%7

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +547% over three years and +102% over five, ahead of 80% of the market.

WATCH

None flagged.

WEAKNESSES

It's down 57% over the past year, now 67% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-29%), over three months (-33%) and so far this year (-22%).

BOTTOM LINE

Outperformer in a Drawdown

04Value

Are you paying a fair price for it?

Stop guessing on Red Cat Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community