RCM TECHNOLOGIES INC (RCMT)
US7493604000 - Common Stock
We assign a fundamental rating of 6 out of 10 to RCMT. RCMT was compared to 79 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCMT was profitable.
In the past year RCMT has reported a negative cash flow from operations.
Of the past 5 years RCMT 4 years were profitable.
Of the past 5 years RCMT 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.52%, RCMT belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 52.31%, RCMT belongs to the top of the industry, outperforming 90.79% of the companies in the same industry.
RCMT has a better Return On Invested Capital (25.55%) than 90.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 18.15%.
The 3 year average ROIC (29.97%) for RCMT is well above the current ROIC(25.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 52.31% | ||
| ROIC | 25.55% |
ROA(3y)17.6%
ROA(5y)8.81%
ROE(3y)57.63%
ROE(5y)29.09%
ROIC(3y)29.97%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.77%, RCMT is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
RCMT's Profit Margin has improved in the last couple of years.
RCMT's Operating Margin of 8.79% is fine compared to the rest of the industry. RCMT outperforms 65.79% of its industry peers.
In the last couple of years the Operating Margin of RCMT has grown nicely.
RCMT has a Gross Margin of 29.30%. This is in the lower half of the industry: RCMT underperforms 67.11% of its industry peers.
RCMT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.79% | ||
| PM (TTM) | 5.77% | ||
| GM | 29.3% |
OM growth 3YN/A
OM growth 5Y20.43%
PM growth 3YN/A
PM growth 5Y36.54%
GM growth 3Y4.05%
GM growth 5Y3.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RCMT is creating value.
The number of shares outstanding for RCMT has been reduced compared to 1 year ago.
The number of shares outstanding for RCMT has been reduced compared to 5 years ago.
Compared to 1 year ago, RCMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.11 indicates that RCMT is not in any danger for bankruptcy at the moment.
RCMT has a Altman-Z score of 4.11. This is in the better half of the industry: RCMT outperforms 73.68% of its industry peers.
RCMT has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.06, RCMT is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.11 |
ROIC/WACC2.74
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.63 indicates that RCMT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.63, RCMT is doing good in the industry, outperforming 60.53% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that RCMT should not have too much problems paying its short term obligations.
RCMT has a Quick ratio of 1.63. This is in the better half of the industry: RCMT outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
RCMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.73%.
Measured over the past years, RCMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.24% on average per year.
The Revenue has been growing slightly by 3.84% in the past year.
RCMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
EPS 1Y (TTM)7.73%
EPS 3YN/A
EPS 5Y50.24%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y20.51%
Revenue growth 5Y5.61%
Sales Q2Q%3.99%
3.2 Future
Based on estimates for the next years, RCMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.86% on average per year.
Based on estimates for the next years, RCMT will show a quite strong growth in Revenue. The Revenue will grow by 8.43% on average per year.
EPS Next Y6.1%
EPS Next 2Y12.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y8.43%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.53, the valuation of RCMT can be described as very reasonable.
Based on the Price/Earnings ratio, RCMT is valued cheaply inside the industry as 88.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RCMT to the average of the S&P500 Index (27.41), we can say RCMT is valued rather cheaply.
RCMT is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
RCMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCMT indicates a rather cheap valuation: RCMT is cheaper than 85.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RCMT does not grow enough to justify the current Price/Earnings ratio.
RCMT has an outstanding profitability rating, which may justify a higher PE ratio.
RCMT's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)0.23
EPS Next 2Y12.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RCMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RCM TECHNOLOGIES INC
NASDAQ:RCMT (1/3/2025, 8:00:01 PM)
22.48
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners37.35%
Inst Owner Change-3.41%
Ins Owners33.27%
Ins Owner Change-0.09%
Market Cap170.85M
Analysts82.5
Price Target37.74 (67.88%)
Short Float %2.36%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.17%
Min EPS beat(2)-8.5%
Max EPS beat(2)-7.84%
EPS beat(4)1
Avg EPS beat(4)-3.83%
Min EPS beat(4)-8.5%
Max EPS beat(4)1.96%
EPS beat(8)4
Avg EPS beat(8)3.71%
EPS beat(12)8
Avg EPS beat(12)28.73%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.29%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)-0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.02%
Revenue beat(12)3
Avg Revenue beat(12)1.35%
Revenue beat(16)7
Avg Revenue beat(16)2.91%
PT rev (1m)0%
PT rev (3m)8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.63 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.69 | ||
| P/tB | 23.26 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)1.95
EY8.67%
EPS(NY)2.53
Fwd EY11.28%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)-0.96
OCFYN/A
SpS35.85
BVpS3.95
TBVpS0.97
PEG (NY)1.89
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.52% | ||
| ROE | 52.31% | ||
| ROCE | 34.26% | ||
| ROIC | 25.55% | ||
| ROICexc | 26.76% | ||
| ROICexgc | 40.54% | ||
| OM | 8.79% | ||
| PM (TTM) | 5.77% | ||
| GM | 29.3% | ||
| FCFM | N/A |
ROA(3y)17.6%
ROA(5y)8.81%
ROE(3y)57.63%
ROE(5y)29.09%
ROIC(3y)29.97%
ROIC(5y)N/A
ROICexc(3y)31.13%
ROICexc(5y)N/A
ROICexgc(3y)56.03%
ROICexgc(5y)N/A
ROCE(3y)40.18%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y31.77%
ROICexc growth 3YN/A
ROICexc growth 5Y27.99%
OM growth 3YN/A
OM growth 5Y20.43%
PM growth 3YN/A
PM growth 5Y36.54%
GM growth 3Y4.05%
GM growth 5Y3.44%
F-Score4
Asset Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 247.28% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 13.87 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.11 |
F-Score4
WACC9.33%
ROIC/WACC2.74
Cap/Depr(3y)126.28%
Cap/Depr(5y)87.04%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.44%
Profit Quality(3y)63.66%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.73%
EPS 3YN/A
EPS 5Y50.24%
EPS Q2Q%-23.91%
EPS Next Y6.1%
EPS Next 2Y12.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y20.51%
Revenue growth 5Y5.61%
Sales Q2Q%3.99%
Revenue Next Year5.7%
Revenue Next 2Y8.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.3%
EBIT growth 3YN/A
EBIT growth 5Y27.19%
EBIT Next Year27.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-167.75%
FCF growth 3Y-27.22%
FCF growth 5YN/A
OCF growth 1Y-143.12%
OCF growth 3Y-20.92%
OCF growth 5YN/A