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Red Cat Holdings has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Red Cat Holdings Inc shows strong financial strength.
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.
GuruFocus does not calculate Red Cat Holdings's interest coverage with the available data.
Red Cat Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.18.
As of today, Red Cat Holdings's Altman Z-Score is 17.85.
Red Cat Holdings (NAS:RCAT) 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.
Red Cat Holdings has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Red Cat Holdings Financial Strength Related Terms
RCAT vs CDRE, NPK, VOYG: Financial Strength Comparison
For the Aerospace & Defense subindustry, Red Cat Holdings'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.
Red Cat Holdings Financial Strength vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Red Cat Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Red Cat Holdings's Financial Strength falls into.
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:
GuruFocus does not calculate Red Cat Holdings's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Red Cat Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Red Cat Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
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.
Red Cat Holdings has a Z-score of 17.85, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 17.85 is strong.
* 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.
Red Cat Holdings (RCAT) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Red Cat Holdings and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Red Cat Holdings' Financial Strength has ranged from 4.00 to 8.00.
Is Red Cat Holdings' Financial Strength too high?
Red Cat Holdings' current Financial Strength of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Red Cat Holdings has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Red Cat Holdings' Financial Strength compare to CDRE and NPK?
Red Cat Holdings' Financial Strength of 8 can be compared against companies in the Aerospace & Defense industry. Historically, Red Cat Holdings' own Financial Strength has ranged from 4.00 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 an Aerospace & Defense company?
A good Financial Strength depends on the Aerospace & Defense 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 Red Cat Holdings and its competitors. Red Cat Holdings's current Financial Strength is 8, which is 14% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Cat Holdings stock overvalued right now?
Based on GuruFocus' analysis, Red Cat Holdings (RCAT) is currently considered Modestly Undervalued. The stock's GF Value™ is $15.70, compared to a current price of $11.13 — trading 29.1% below its estimated fair value. The current Financial Strength is 8, which is 14% above median its 10-year median of 7.00. Red Cat Holdings' overall GF Score™ is 78/100 with 3 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 Red Cat Holdings (RCAT), the current Financial Strength is 8 as of Jun. 2026. 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.
Is Red Cat Holdings (RCAT) Overvalued in 2026?
Based on GuruFocus' analysis, Red Cat Holdings stock appears to be undervalued.
The current stock price of $11.13 is trading 29.1% below its estimated GF Value™ of $15.70.
GuruFocus considers Red Cat Holdings to be Modestly Undervalued.
Key valuation signals for RCAT:
Financial Strength: 8 (14% above median its 10-year median of 7.00)
GF Value™: $15.70 vs. price of $11.13 (29.1% below fair value)
No single metric tells the full story. See the RCAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Cat Holdings Inc is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Its suite of solutions includes the Arachnid family of ISR and precision strike drones, which includes the Black Widow, a small unmanned ISR system; and WEB (Warfighter Electronic Bridge) GCS, designed to command and control an entire drone family of systems for military operations. Its other offerings include Edge 130 Blue drone systems, Trichon, a fixed-wing VTOL for extended endurance and range, and FANG FPV drones optimized for military operations with precision strike capabilities. The firm's Division includes Teal, FlightWave, and Blue Ops.
78GF Score
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