Bull Of The Day: Richtech Robotics (RR)

Richtech Robotics (RR) is a Zacks Rank #2 (Buy) that has an F for Value and an F for Growth. The is a provider of collaborative robotic solutions specializing in the service industry, including the hospitality and healthcare sectors.  Robotics is an up and coming industry and we are not talking about circular devices that replace your vacuum cleaner, these are machines that can handle complex tasks.  Let’s learn more about why this stock is the Bull of the Day.

Description                                              

Richtech Robotics, Inc. engages in the development of robotic technologies. The firm designs, manufactures, and sells robots to restaurants, hotels, senior living centers, casinos, factories, and movie theaters. Its robots perform a variety of services including restaurant running and bussing, hotel room service delivery, floor scrubbing and vacuuming, and beverage and food preparation. The company was founded by Zhen Wu Huang and Zhen Qiang Huang on July 19, 2016 and is headquartered in Las Vegas, NV.

Earnings History                                                         

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Richtech Robotics (RR) has posted two quarters with a Zacks Consensus Estimate and has one miss and one meet.  The company most recently posted a loss of $0.04 per share, inline with the Zacks Consensus Estimate.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for Richtech Robotics (RR).

The full year 2025 has held still at a loss of $0.15 over the last 60 days.

2026 has increased from a loss of $0.14 to a loss of $0.10 over the last week.

Growth

There is good growth projected for Richtech Robotics (RR).  This fiscal year analysts are expecting $5M in revenue which would be good for 18.2% topline growth.

Next fiscal year, the consensus is calling for $13.48M and that would be good for 175% sales growth.

Product Line

The company has 5 major products. 

ADAM is a an AI Barista and cocktail robot for hospitality venues and carries a starting price of around $25,000. Scorpion is an autonomous floor scrubbing and cleaning robot for commercial spaces and has a starting price of around $18,000.

Matradee is a hosting and seeding management robot for restaurants with AI for guest interaction and table optimization it carries a starting price of approximately $15,000.

Titan is a heavy duty delivery and transport robot for warehouses or large venues with a payload capacity of up to £500 and has a starting price of around $30,000.   

Medbot Series Is for medical delivery in hospitals transporting supplies autonomously there are HIPAA compliant features and customization for specific healthcare protocols and a starting price of around $22,000.

Valuation

Right now there are no earnings so there is no PE to lean on. Instead we look to price to book which comes in at a 6.4x multiple.

Price to sales comes in at an eye popping 177x, but with incredible growth this number should come down dramatically.

Right now margins are negative and not improving, but when they do this stock will move significantly higher.

Stock Offering

The company filed a $1B At-The-Market offering on September 23 and that has had a negative impact on the stock.  The company will likely disclose how much has been raised via the offering soon and given the volume of the past few trading sessions it could be over $50M, should the company raise $250M or more, it would be wise to end the offering and the allow the stock to continue to run.

Tesla (TSLA) has noted that they plan to produce some 10,000 robots by the end of the year and after Elon Mush bought $1B worth of stock it is clear that he believes that robots will be the next growth driver for the company.  With this in mind, investors looking for a far less expensive option would gravitate to RR, but that offering is holding a lot of them back.

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This article originally published on Zacks Investment Research (zacks.com).

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