Red Cat Holdings, Inc. (RCAT) — Stock Score Summary

Red Cat Holdings, Inc. (RCAT) has a MoatMap StockRank of 27/100 based on Quality (24/100), Value (35/100), and Momentum (56/100) factor scores. The current signal is SELL. Red Cat Holdings, through its Teal Drones subsidiary, is a direct beneficiary of the US government's push to onshore small unmanned aerial systems (sUAS) and ban Chinese-made alternatives. While the thematic tailwind from the NDAA is powerful, the company is still scaling and lacks the consistent profitability and high ROIC required for a high-conviction position.

Red Cat Holdings, Inc. develops and markets enterprise-grade drone technology, software, and services for military, government, and commercial sectors. The company specializes in drone-based data capture, analytics, and tactical systems, including advanced small unmanned aerial systems (sUAS) for defense applications. Its focus on highly specialized, secure, and integrated drone solutions for critical missions positions it as a key player in the rapidly evolving drone technology market with a clear competitive niche.

Key Financial Metrics

Price$13.79
Market Cap$2.2B
P/E (Forward)-40.94
Price/Book7.52
Return on Equity-56.4%
Return on Invested Capital-25.7%
Debt/Equity5.78
Gross Margin7.5%
Operating Margin-176.5%
Revenue Growth849.1%
Free Cash Flow$-89M

Red Cat Holdings, Inc. operates in the Aerospace & Defense industry, part of the Industrials sector (United States).

Frequently Asked Questions

What is Red Cat Holdings, Inc.’s (RCAT) StockRank?
MoatMap’s StockRank for Red Cat Holdings, Inc. (RCAT) is 27/100, with a Sell signal. It is a composite of Quality (24), Value (35), and Momentum (56) factor ranks across MoatMap’s 19,000+ stock universe.
Does Red Cat Holdings, Inc. have an economic moat?
Red Cat Holdings, Inc. (RCAT) has a Quality factor score of 24/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Red Cat Holdings, Inc. a buy, hold, or sell?
MoatMap’s current signal for Red Cat Holdings, Inc. (RCAT) is Sell, based on a StockRank of 27/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Red Cat Holdings, Inc. in?
Red Cat Holdings, Inc. (RCAT) operates in the Industrials sector, specifically the Aerospace & Defense industry (United States).
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