# Real Estate Credit Investments Limited (RECI.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services. Price 117p, market value 258 millionp.

## Valuation
- **P/E (trailing): 16.7×** (5-yr avg 1390.7×, 3-yr avg 1366.9×). Real Estate Credit Investments Limited trades at 16.7× trailing earnings, well below its own five-year average of 1390.7×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 9.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 4.6×**. Each dollar of revenue is priced at 4.6×.
- **Price / book: 0.8×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 43.4×**. Enterprise value is 43.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: -9.3%** (5-yr avg 0.1%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 6.0%**. The inverse of the P/E: 6.0% of the price is earned each year.

## Profitability
- **Gross margin: 100.0%**. Real Estate Credit Investments Limited keeps 100.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 79.9%**. 79.9% of revenue is left after running the business, an exceptional level.
- **Net margin: 70.7%**. 70.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.0%**. 5.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.1%**. Return on all capital, debt included, is 11.1%.
- **Return on assets: 8.9%**. Each dollar of assets produces 8.9% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -28.6%** (3-yr 5.5%/yr, 5-yr -13.9%/yr). Revenue fell 28.6% over the last year, against -13.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -31.5%** (3-yr -8.6%/yr, 5-yr -15.6%/yr). Earnings per share fell 31.5%, roughly in step with revenue.

## Financial health
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.
- **Cash and short-term investments: 19 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 10.30%** (0p per share, trailing). Real Estate Credit Investments Limited yields 10.30%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 175%**. The dividend exceeds earnings (175% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 10**. 10 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.
- **Shareholder yield: 12.3%**. Dividends plus net buybacks return 12.3% of the market value a year.

## Price and momentum
- **Total return (1 yr): -8.4%** (YTD -4.4%, 3-mo 2.2%). The shares are down 8.4% over twelve months including dividends.
- **From 52-week high: -10.4%** (4.4% above the low). Trading 10% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 0.04** (volatility 15%). Beta of 0.04 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RECI.L · Page: https://foliofundamentals.com/stocks/reci.l

Not investment advice.