Red Cat HoldingsRCAT +3.20%80 Return-on-Tangible-Equity is -51.07% as of Mar. 2026. GuruFocus rates RCAT with a GF Score™ of 80/100 and a GF Value™ of $7.94 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 334 Aerospace & Defense companies, Red Cat Holdings ranks worse than 90.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Red Cat Holdings's annualized net income for the quarter that ended in Mar. 2026 was $-106.21 Mil. Red Cat Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $207.98 Mil. Therefore, Red Cat Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -51.07%.
The historical rank and industry rank for Red Cat Holdings's Return-on-Tangible-Equity or its related term are showing as below:
RCAT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -78.17 Med: -63.34 Max: -51.61
Current: -52.6
During the past 13 years, Red Cat Holdings's highest Return-on-Tangible-Equity was -51.61%. The lowest was -78.17%. And the median was -63.34%.
RCAT's Return-on-Tangible-Equity is ranked worse than 90.12% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs RCAT: -52.60
Red Cat Holdings (NAS:RCAT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Red Cat Holdings Return-on-Tangible-Equity Related Terms
Red Cat Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Red Cat Holdings's Return-on-Tangible-Equity can be seen below:
* 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.
RCAT vs CDRE, VOYG, AVEX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Red Cat Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Red Cat Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Red Cat Holdings's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -51.07% mean?
Red Cat Holdings (RCAT) has a Return-on-Tangible-Equity of -51.07% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Red Cat Holdings and its competitors. According to the industry distribution chart, Red Cat Holdings ranks #301 out of 334 companies in the Aerospace & Defense industry, placing it in the top 90.1%.
Is Red Cat Holdings' Return-on-Tangible-Equity too high?
Red Cat Holdings' current Return-on-Tangible-Equity is -51.07%. Based on the distribution chart, Red Cat Holdings ranks #301 out of 334 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Red Cat Holdings has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Cat Holdings' Return-on-Tangible-Equity compare to CDRE and VOYG?
According to the Aerospace & Defense industry distribution chart, Red Cat Holdings ranks #301 out of 334 companies for Return-on-Tangible-Equity. This places Red Cat Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Red Cat Holdings and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Cat Holdings's current Return-on-Tangible-Equity is -51.07%. 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 Significantly Overvalued. The stock's GF Value™ is $7.94, compared to a current price of $10.65 — trading 34.1% above its estimated fair value. The current Return-on-Tangible-Equity is -51.07%. Red Cat Holdings' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Red Cat Holdings (RCAT), the current Return-on-Tangible-Equity is -51.07% as of Mar. 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 overvalued.
The current stock price of $10.65 is trading 34.1% above its estimated GF Value™ of $7.94.
GuruFocus considers Red Cat Holdings to be Significantly Overvalued.
Key valuation signals for RCAT:
Return-on-Tangible-Equity: -51.07%
GF Value™: $7.94 vs. price of $10.65 (34.1% above 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.
80GF Score
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