Logo image of RCMT

RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis

NASDAQ:RCMT - Nasdaq - US7493604000 - Common Stock - Currency: USD

18.97  -0.38 (-1.96%)

After market: 18.97 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to RCMT. RCMT was compared to 81 industry peers in the Professional Services industry. While RCMT belongs to the best of the industry regarding profitability, 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! This makes RCMT very considerable for value investing!


Dividend Valuation Growth Profitability Health

Quickly go to:

8

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.
RCMT had positive earnings in 4 of the past 5 years.
Of the past 5 years RCMT 4 years had a positive operating cash flow.
RCMT Yearly Net Income VS EBIT VS OCF VS FCFRCMT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M

1.2 Ratios

RCMT's Return On Assets of 12.52% is amongst the best of the industry. RCMT outperforms 86.08% of its industry peers.
RCMT has a Return On Equity of 52.31%. This is amongst the best in the industry. RCMT outperforms 91.14% of its industry peers.
With an excellent Return On Invested Capital value of 25.55%, RCMT belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
RCMT had an Average Return On Invested Capital over the past 3 years of 29.97%. This is significantly above the industry average of 13.71%.
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 RankSector 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
RCMT Yearly ROA, ROE, ROICRCMT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

1.3 Margins

RCMT's Profit Margin of 5.77% is fine compared to the rest of the industry. RCMT outperforms 64.56% of its industry peers.
RCMT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.79%, RCMT is in the better half of the industry, outperforming 67.09% of the companies in the same industry.
In the last couple of years the Operating Margin of RCMT has grown nicely.
RCMT has a worse Gross Margin (29.30%) than 64.56% of its industry peers.
RCMT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
RCMT Yearly Profit, Operating, Gross MarginsRCMT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

More info and screens

5

2. Health

2.1 Basic Checks

RCMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for RCMT has been reduced compared to 1 year ago.
RCMT has less shares outstanding than it did 5 years ago.
RCMT has a worse debt/assets ratio than last year.
RCMT Yearly Shares OutstandingRCMT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
RCMT Yearly Total Debt VS Total AssetsRCMT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

An Altman-Z score of 3.94 indicates that RCMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.94, RCMT is in the better half of the industry, outperforming 73.42% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that RCMT has dependencies on debt financing.
The Debt to Equity ratio of RCMT (1.06) is worse than 77.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF N/A
Altman-Z 3.94
ROIC/WACC2.87
WACC8.91%
RCMT Yearly LT Debt VS Equity VS FCFRCMT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M 30M

2.3 Liquidity

RCMT has a Current Ratio of 1.63. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.63, RCMT is in the better half of the industry, outperforming 60.76% 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.
With a decent Quick ratio value of 1.63, RCMT is doing good in the industry, outperforming 62.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.63
RCMT Yearly Current Assets VS Current LiabilitesRCMT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

More info and screens

6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.73% over the past year.
The Earnings Per Share has been growing by 50.24% on average over the past years. This is a very strong growth
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
RCMT Yearly Revenue VS EstimatesRCMT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
RCMT Yearly EPS VS EstimatesRCMT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.73, the valuation of RCMT can be described as reasonable.
Based on the Price/Earnings ratio, RCMT is valued cheaper than 87.34% of the companies in the same industry.
RCMT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 7.48, the valuation of RCMT can be described as very cheap.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaper than 89.87% of the companies in the same industry.
RCMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.73
Fwd PE 7.48
RCMT Price Earnings VS Forward Price EarningsRCMT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

86.08% of the companies in the same industry are more expensive than RCMT, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.82
RCMT Per share dataRCMT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

RCMT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RCMT 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)1.59
PEG (5Y)0.19
EPS Next 2Y12.86%
EPS Next 3YN/A

More info and screens

0

5. Dividend

5.1 Amount

RCMT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

RCM TECHNOLOGIES INC

NASDAQ:RCMT (2/21/2025, 8:00:01 PM)

After market: 18.97 0 (0%)

18.97

-0.38 (-1.96%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)03-05 2025-03-05/amc
Inst Owners37.88%
Inst Owner Change-95.46%
Ins Owners33.65%
Ins Owner Change0.72%
Market Cap144.17M
Analysts82.5
Price Target37.74 (98.95%)
Short Float %3.3%
Short Ratio3.44
Dividend
Industry RankSector 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)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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
Industry RankSector Rank
PE 9.73
Fwd PE 7.48
P/S 0.53
P/FCF N/A
P/OCF N/A
P/B 4.8
P/tB 19.63
EV/EBITDA 6.82
EPS(TTM)1.95
EY10.28%
EPS(NY)2.53
Fwd EY13.36%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)-0.96
OCFYN/A
SpS35.85
BVpS3.95
TBVpS0.97
PEG (NY)1.59
PEG (5Y)0.19
Profitability
Industry RankSector 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 RankSector 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 3.94
F-Score4
WACC8.91%
ROIC/WACC2.87
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