RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
USA - NASDAQ:RCMT - US7493604000 - Common Stock
18.52 USD
-0.25 (-1.33%)
Overall RCMT gets a fundamental rating of 6 out of 10. We evaluated RCMT against 87 industry peers in the Professional Services industry. RCMT has an excellent profitability rating, but there are some minor concerns on its financial health. RCMT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make RCMT suitable for value investing!
1. Profitability
1.1 Basic Checks
RCMT had positive earnings in the past year.
RCMT had a positive operating cash flow in the past year.
Of the past 5 years RCMT 4 years were profitable.
In the past 5 years RCMT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.02%, RCMT belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
With an excellent Return On Equity value of 35.95%, RCMT belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
RCMT's Return On Invested Capital of 19.80% is amongst the best of the industry. RCMT outperforms 90.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCMT is significantly above the industry average of 22.56%.
The 3 year average ROIC (29.36%) for RCMT is well above the current ROIC(19.80%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 35.95% | ||
| ROIC | 19.8% |
ROA(3y)15.94%
ROA(5y)9.97%
ROE(3y)56.79%
ROE(5y)34.52%
ROIC(3y)29.36%
ROIC(5y)N/A
1.3 Margins
RCMT has a Profit Margin of 4.53%. This is comparable to the rest of the industry: RCMT outperforms 57.47% of its industry peers.
In the last couple of years the Profit Margin of RCMT has grown nicely.
RCMT has a Operating Margin of 7.55%. This is in the better half of the industry: RCMT outperforms 62.07% of its industry peers.
RCMT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.90%, RCMT is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
RCMT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.55% | ||
| PM (TTM) | 4.53% | ||
| GM | 27.9% |
OM growth 3Y15.64%
OM growth 5Y17.04%
PM growth 3Y-3.9%
PM growth 5Y17.41%
GM growth 3Y3.24%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RCMT is creating value.
Compared to 1 year ago, RCMT has less shares outstanding
The number of shares outstanding for RCMT has been reduced compared to 5 years ago.
The debt/assets ratio for RCMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.05 indicates that RCMT is not in any danger for bankruptcy at the moment.
RCMT's Altman-Z score of 4.05 is fine compared to the rest of the industry. RCMT outperforms 77.01% of its industry peers.
RCMT has a debt to FCF ratio of 89.60. This is a negative value and a sign of low solvency as RCMT would need 89.60 years to pay back of all of its debts.
RCMT's Debt to FCF ratio of 89.60 is on the low side compared to the rest of the industry. RCMT is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that RCMT is somewhat dependend on debt financing.
RCMT has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: RCMT underperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.05 |
ROIC/WACC2.5
WACC7.92%
2.3 Liquidity
RCMT has a Current Ratio of 1.85. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
RCMT has a Current ratio of 1.85. This is in the better half of the industry: RCMT outperforms 66.67% of its industry peers.
A Quick Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, RCMT is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
RCMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.59%.
The Earnings Per Share has been growing by 39.16% on average over the past years. This is a very strong growth
RCMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
The Revenue has been growing slightly by 7.81% on average over the past years.
EPS 1Y (TTM)3.59%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%20%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
3.2 Future
Based on estimates for the next years, RCMT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.98% on average per year.
The Revenue is expected to grow by 9.68% on average over the next years. This is quite good.
EPS Next Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.93%
Revenue Next 2Y9.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.17 indicates a reasonable valuation of RCMT.
86.21% of the companies in the same industry are more expensive than RCMT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.47, RCMT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of RCMT.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaper than 90.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.42, RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCMT is valued cheaper than 85.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCMT is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 346.55 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RCMT has an outstanding profitability rating, which may justify a higher PE ratio.
RCMT's earnings are expected to grow with 26.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)0.23
EPS Next 2Y26.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RCMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RCMT (11/20/2025, 2:48:47 PM)
18.52
-0.25 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change11.23%
Ins Owners34.81%
Ins Owner Change-1.43%
Market Cap137.23M
Revenue(TTM)278.38M
Net Income(TTM)13.58M
Analysts82.5
Price Target31.62 (70.73%)
Short Float %5.21%
Short Ratio7.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.68%
Min EPS beat(2)-3.74%
Max EPS beat(2)9.11%
EPS beat(4)1
Avg EPS beat(4)-13.85%
Min EPS beat(4)-52.27%
Max EPS beat(4)9.11%
EPS beat(8)3
Avg EPS beat(8)-2.66%
EPS beat(12)6
Avg EPS beat(12)-0.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)6.45%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)6.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)5
Avg Revenue beat(16)1.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)0%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.46 | ||
| P/FCF | 346.55 | ||
| P/OCF | 48.99 | ||
| P/B | 3.63 | ||
| P/tB | 8.78 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)2.02
EY10.91%
EPS(NY)2.69
Fwd EY14.54%
FCF(TTM)0.05
FCFY0.29%
OCF(TTM)0.38
OCFY2.04%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.2
PEG (5Y)0.23
Graham Number15.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 35.95% | ||
| ROCE | 27.92% | ||
| ROIC | 19.8% | ||
| ROICexc | 21.23% | ||
| ROICexgc | 30.03% | ||
| OM | 7.55% | ||
| PM (TTM) | 4.53% | ||
| GM | 27.9% | ||
| FCFM | 0.13% |
ROA(3y)15.94%
ROA(5y)9.97%
ROE(3y)56.79%
ROE(5y)34.52%
ROIC(3y)29.36%
ROIC(5y)N/A
ROICexc(3y)30.85%
ROICexc(5y)N/A
ROICexgc(3y)54.01%
ROICexgc(5y)N/A
ROCE(3y)41.4%
ROCE(5y)N/A
ROICexgc growth 3Y2.63%
ROICexgc growth 5Y28.37%
ROICexc growth 3Y7.02%
ROICexc growth 5Y25.94%
OM growth 3Y15.64%
OM growth 5Y17.04%
PM growth 3Y-3.9%
PM growth 5Y17.41%
GM growth 3Y3.24%
GM growth 5Y2.42%
F-Score4
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 108.48% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 9 | ||
| Cash Conversion | 11.27% | ||
| Profit Quality | 2.92% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 4.05 |
F-Score4
WACC7.92%
ROIC/WACC2.5
Cap/Depr(3y)149.79%
Cap/Depr(5y)106.86%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.59%
Profit Quality(3y)71.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.59%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%20%
EPS Next Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.75%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
Revenue Next Year11.93%
Revenue Next 2Y9.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.23%
EBIT growth 3Y28.29%
EBIT growth 5Y26.18%
EBIT Next Year16.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-98.28%
FCF growth 3Y117.44%
FCF growth 5YN/A
OCF growth 1Y-88.34%
OCF growth 3Y88.58%
OCF growth 5YN/A
RCM TECHNOLOGIES INC / RCMT FAQ
Can you provide the ChartMill fundamental rating for RCM TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to RCMT.
What is the valuation status for RCMT stock?
ChartMill assigns a valuation rating of 8 / 10 to RCM TECHNOLOGIES INC (RCMT). This can be considered as Undervalued.
What is the profitability of RCMT stock?
RCM TECHNOLOGIES INC (RCMT) has a profitability rating of 8 / 10.
How financially healthy is RCM TECHNOLOGIES INC?
The financial health rating of RCM TECHNOLOGIES INC (RCMT) is 5 / 10.
Can you provide the expected EPS growth for RCMT stock?
The Earnings per Share (EPS) of RCM TECHNOLOGIES INC (RCMT) is expected to grow by 45.37% in the next year.