Recon Technology, Ltd. RCON

Competitive advantage analysis · energy

Corporate Default
Overall moat score
22/100
Weak

About Recon Technology, Ltd.

Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in China. The Company provides specialized equipment, automation systems, tools, chemicals, outsourcing platform services, and field services to energy industry companies mainly in China. The company offers equipment, tools, and other components and parts related to oilfield production and other energy industries; … Full RCON analysis →

Competitive advantage assessment

Key strengths

  • Operating Leverage in Effect Operating leverage is evident (score 0.85), with margins expanding over time.
  • Strong Liquidity Buffer Liquidity position is strong (score 1.00), providing operational cushion.

Key risks

  • ROIC Below WACC or Peers ROIC at 8.5th percentile suggests inefficient capital deployment.
  • Below-Peer Operating Efficiency Operating margin at 4.3th percentile indicates below-peer efficiency.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
17

Where RCON ranks in Oil & Gas Equipment & Services

Recon Technology, Ltd. ranks #44 of 50 scored companies in Oil & Gas Equipment & Services by moat score — the top 88%. The widest moat in the group is Cactus, Inc. Class A Common Sto (WHD) at 78/100.

Moat scores for companies ranked near RCON in Oil & Gas Equipment & Services
# Company Moat score Rating
40 Geospace Technologies Corporati GEOS 30/100 Developing
41 Leishen Energy Holding Co., Ltd LSE 27/100 Developing
42 Dawson Geophysical Company DWSN 27/100 Developing
43 Nine Energy Service, Inc. NINE 24/100 Weak
44 Recon Technology, Ltd. RCON 22/100 Weak
45 Atlas Energy Solutions Inc. AESI 21/100 Weak
46 KLX Energy Services Holdings, I KLXE 16/100 Weak
47 ProFrac Holding Corp. ACDC 13/100 Weak
48 NextDecade Corporation NEXT 6/100 Weak

See every Commodities & Mining company ranked by moat score →

How RCON scores on the Corporate Default defenses

Pricing Power

Score 16 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 3 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 14 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 14 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 32 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 51 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding RCON's moat

What is Recon Technology, Ltd.'s moat score?

Recon Technology, Ltd. (RCON) scores 22 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #44 of 50 scored companies in Oil & Gas Equipment & Services, the top 88%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 49 companies in Oil & Gas Equipment & Services. Its strongest defense is Scale & Market Position (51/100) and its weakest is Cost Advantage (3/100).

How does Recon Technology, Ltd. compare with other Oil & Gas Equipment & Services companies?

Recon Technology, Ltd. ranks #44 of 50 scored companies in Oil & Gas Equipment & Services by moat score. The widest moat in Oil & Gas Equipment & Services is Cactus, Inc. Class A Common Sto (WHD) at 78/100. The companies ranked closest are Nine Energy Service, Inc. (NINE) at 24 just above it and Atlas Energy Solutions Inc. (AESI) at 21 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 49 companies in Oil & Gas Equipment & Services. The defenses are then weighted to produce the overall score out of 100.

Why is Recon Technology, Ltd. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Recon Technology, Ltd.?

The Corporate Default template measures 6 defenses, and RCON scores: Pricing Power (16), Cost Advantage (3), Customer Stickiness (14), Capital Efficiency (14), Resilience (32), Scale & Market Position (51). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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