RCAT (Red Cat Holdings) ROCE %: -41.87% (As of Mar. 2026)

What is Red Cat Holdings ROCE %?

Red Cat Holdings RCAT -8.34% 80 ROCE % is -41.87% as of Mar. 2026. GuruFocus rates RCAT with a GF Score™ of 80/100 and a GF Value™ of $7.91 (Modestly Overvalued). The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Red Cat Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was -41.87%.

Red Cat Holdings (NAS:RCAT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Red Cat Holdings ROCE % Related Terms

Red Cat Holdings ROCE % Historical Data

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The historical data trend for Red Cat Holdings's ROCE % 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.

Red Cat Holdings ROCE % Chart

Red Cat Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Apr20

Apr21

Apr22

Apr23

Apr24

Dec25

ROCE %

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-266.99

-26.64

-34.49

-37.18

-43.85

Red Cat Holdings Quarterly Data
	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-162.32	-79.05	-39.03	-36.76	-41.87

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Red Cat Holdings Inc RCAT

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Red Cat Holdings ROCE % Calculation

Red Cat Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Apr. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Apr. 2024 )		(A: Dec. 2025 )
	=	-66.597	/	( ( (48.538 - 3.651)	+	(273.677 - 14.846) )	/ 2 )
	=	-66.597	/	( (44.887	+	258.831)	/ 2 )
	=	-66.597	/	151.859
	=	-43.85 %

Red Cat Holdings's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-109.208	/	( ( (273.677 - 14.846)	+	(281.885 - 19.081) )	/ 2 )
	=	-109.208	/	( ( 258.831	+	262.804 )	/ 2 )
	=	-109.208	/	260.8175
	=	-41.87 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -41.87% mean?

Red Cat Holdings (RCAT) has a ROCE % of -41.87% as of Mar. 2026.

Is Red Cat Holdings' ROCE % too high?

Red Cat Holdings' current ROCE % is -41.87%. Overall, Red Cat Holdings has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Red Cat Holdings' ROCE % compare to DCO and AVEX?

Red Cat Holdings' ROCE % of -41.87% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Aerospace & Defense company?

The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Cat Holdings's current ROCE % is -41.87%. 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 Overvalued. The stock's GF Value™ is $7.91, compared to a current price of $9.36 — trading 18.3% above its estimated fair value. The current ROCE % is -41.87%. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Red Cat Holdings (RCAT), the current ROCE % is -41.87% 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 $9.36 is trading 18.3% above its estimated GF Value™ of $7.91. GuruFocus considers Red Cat Holdings to be Modestly Overvalued.

Key valuation signals for RCAT:

ROCE %: -41.87%
GF Value™: $7.91 vs. price of $9.36 (18.3% above fair value)
GF Score™: 80/100 with 4 warning signs

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 Business Description

Industry Industrials Aerospace & Defense

Comparable Companies DCO AVEX VVX VOYG SATL HAWK CDRE ATRO EVEX NPK GE RTX BA XPAR:AIR LSE:RR.XPAR:SAF LMT HWM GD RKLB

Other Exchanges 1RCAT:Italy BQ73:Germany

Address 2800 South West Temple, Suite 5, South Salt Lake, UT, USA, 84115

Website https://www.redcat.red

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.

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$9.36

Price

$7.91

GF Value

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