Recce Pharmaceuticals (ASX:RCE) Financial Strength: 3 (As of Dec. 2025) — 40% Below Median

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ASX:RCE Recce Pharmaceuticals Ltd ASX:RCE
17 GF Score
Price A$0.38
! 4 Warning Signs
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What is Recce Pharmaceuticals Financial Strength?

Recce Pharmaceuticals ASX:RCE -1.32% 17 Financial Strength is 3 as of Dec. 2025, which is 40% below its 10-year median of 5.00. GuruFocus rates ASX:RCE with a GF Score™ of 17/100. The stock has 4 warning signs investors should review.

Recce Pharmaceuticals has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Recce Pharmaceuticals Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Recce Pharmaceuticals did not have earnings to cover the interest expense. As of today, Recce Pharmaceuticals's Altman Z-Score is 0.00.


Recce Pharmaceuticals  (ASX:RCE) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Recce Pharmaceuticals has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Recce Pharmaceuticals Financial Strength Related Terms


ASX:RCE vs VRTX, REGN, RVMD: Financial Strength Comparison

For the Biotechnology subindustry, Recce Pharmaceuticals's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Recce Pharmaceuticals Financial Strength vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Recce Pharmaceuticals's Financial Strength distribution charts can be found below:

* The bar in red indicates where Recce Pharmaceuticals's Financial Strength falls into.


ASX:RCE
17GF Score
Recce Pharmaceuticals Ltd ASX:RCE
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Recce Pharmaceuticals Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Recce Pharmaceuticals's Interest Expense for the months ended in Dec. 2025 was A$-0.86 Mil. Its Operating Income for the months ended in Dec. 2025 was A$-13.75 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was A$8.96 Mil.

Recce Pharmaceuticals's Interest Coverage for the quarter that ended in Dec. 2025 is

Recce Pharmaceuticals did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Recce Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.746 + 8.962) / 0
=N/A

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Recce Pharmaceuticals has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 3 mean?
Recce Pharmaceuticals (ASX:RCE) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Recce Pharmaceuticals and its competitors. This is 40% below median its historical median of 5.00. Over the past decade, Recce Pharmaceuticals' Financial Strength has ranged from 3.00 to 8.00.
Is Recce Pharmaceuticals' Financial Strength too high?
Recce Pharmaceuticals' current Financial Strength of 3 is 40% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Recce Pharmaceuticals has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Recce Pharmaceuticals' Financial Strength compare to VRTX and REGN?
Recce Pharmaceuticals' Financial Strength of 3 can be compared against companies in the Biotechnology industry. Historically, Recce Pharmaceuticals' own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Biotechnology company?
A good Financial Strength depends on the Biotechnology industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Recce Pharmaceuticals and its competitors. Recce Pharmaceuticals's current Financial Strength is 3, which is 40% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recce Pharmaceuticals stock overvalued right now?
Recce Pharmaceuticals (ASX:RCE) has a current Financial Strength of 3. The current Financial Strength is 3, which is 40% below median its 10-year median of 5.00. Recce Pharmaceuticals' overall GF Score™ is 17/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Recce Pharmaceuticals (ASX:RCE), the current Financial Strength is 3 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Recce Pharmaceuticals Business Description

Other Exchanges R9Q:Germany
Address 3 Brodie Hall Drive, Suite 10, Technology Park, Bentley, WA, AUS, 6102
Recce Pharmaceuticals Ltd is an Australia-based, globally-focused biotechnology company that is pioneering the development and commercialisation of a drug discovery and development business commercialising new Classes of synthetic anti-infectives with broad-spectrum activity designed to address the urgent health threat of antibiotic-resistant superbugs and emerging viral pathogens. Its patented candidate, RECCE 327, has been developed for the treatment of life-threatening bacterial infections. It has one segment, which is the research and development of pharmaceutical drugs. Geographic segments are Australia, the UK, and the USA, of which the majority of the revenue comes from Australia. It offers antibiotic drugs to treat bacterial infections for Sepsis, Escherichia coli, and Others.
17GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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