20.9 USD
-0.14 (-0.67%)
20.9 USD
0 (0%)
Overall RCMT gets a fundamental rating of 6 out of 10. We evaluated RCMT against 87 industry peers in the Professional Services industry. While RCMT has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RCMT. These ratings could make RCMT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year RCMT was profitable.
RCMT had a positive operating cash flow in the past year.
RCMT had positive earnings in 4 of the past 5 years.
RCMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCMT has a Return On Assets of 10.09%. This is amongst the best in the industry. RCMT outperforms 80.46% of its industry peers.
RCMT's Return On Equity of 31.65% is amongst the best of the industry. RCMT outperforms 87.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.24%, RCMT belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 11.98%.
The last Return On Invested Capital (19.24%) for RCMT is well below the 3 year average (29.36%), which needs to be investigated, but indicates that RCMT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.09% | ||
| ROE | 31.65% | ||
| ROIC | 19.24% |
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 (4.23%) which is in line with its industry peers.
RCMT's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.16%, RCMT perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
In the last couple of years the Operating Margin of RCMT has grown nicely.
The Gross Margin of RCMT (27.51%) is worse than 63.22% of its industry peers.
In the last couple of years the Gross Margin of RCMT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 4.23% | ||
| GM | 27.51% |
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
RCMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RCMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCMT has less shares outstanding
RCMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.48 indicates that RCMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of RCMT (4.48) is better than 82.76% of its industry peers.
RCMT has a debt to FCF ratio of 9.42. This is a negative value and a sign of low solvency as RCMT would need 9.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.42, RCMT is in line with its industry, outperforming 43.68% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that RCMT is somewhat dependend on debt financing.
RCMT's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. RCMT is outperformed by 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 4.48 |
ROIC/WACC2.39
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.98 indicates that RCMT should not have too much problems paying its short term obligations.
The Current ratio of RCMT (1.98) is better than 72.41% of its industry peers.
RCMT has a Quick Ratio of 1.98. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
RCMT's Quick ratio of 1.98 is fine compared to the rest of the industry. RCMT outperforms 74.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.59% over the past year.
RCMT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.16% yearly.
The Revenue has grown by 13.70% in the past year. This is quite good.
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)13.7%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
3.2 Future
RCMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.77% yearly.
Based on estimates for the next years, RCMT will show a quite strong growth in Revenue. The Revenue will grow by 9.77% on average per year.
EPS Next Y41.7%
EPS Next 2Y25.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y9.77%
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
Based on the Price/Earnings ratio of 10.35, the valuation of RCMT can be described as reasonable.
Based on the Price/Earnings ratio, RCMT is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
RCMT is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
RCMT is valuated cheaply with a Price/Forward Earnings ratio of 7.91.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaply inside the industry as 87.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RCMT to the average of the S&P500 Index (23.79), we can say RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
82.76% of the companies in the same industry are more expensive than RCMT, based on the Enterprise Value to EBITDA ratio.
RCMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.22 | ||
| EV/EBITDA | 7.61 |
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.
The excellent profitability rating of RCMT may justify a higher PE ratio.
RCMT's earnings are expected to grow with 25.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)0.26
EPS Next 2Y25.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCMT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
20.9
-0.14 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners44.82%
Inst Owner Change11.53%
Ins Owners34.76%
Ins Owner Change-0.71%
Market Cap154.87M
Revenue(TTM)309.84M
Net Income(TTM)13.10M
Analysts82.5
Price Target31.62 (51.29%)
Short Float %4.41%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.82%
Min EPS beat(2)-7.47%
Max EPS beat(2)9.11%
EPS beat(4)1
Avg EPS beat(4)-13.59%
Min EPS beat(4)-52.27%
Max EPS beat(4)9.11%
EPS beat(8)2
Avg EPS beat(8)-8.71%
EPS beat(12)5
Avg EPS beat(12)-2.06%
EPS beat(16)9
Avg EPS beat(16)18.15%
Revenue beat(2)1
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)6.45%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.39%
Revenue beat(16)5
Avg Revenue beat(16)0.98%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)-2.52%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.5 | ||
| P/FCF | 44.22 | ||
| P/OCF | 26.32 | ||
| P/B | 3.74 | ||
| P/tB | 8.05 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)2.02
EY9.67%
EPS(NY)2.64
Fwd EY12.64%
FCF(TTM)0.47
FCFY2.26%
OCF(TTM)0.79
OCFY3.8%
SpS41.81
BVpS5.58
TBVpS2.6
PEG (NY)0.25
PEG (5Y)0.26
Graham Number15.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.09% | ||
| ROE | 31.65% | ||
| ROCE | 27.13% | ||
| ROIC | 19.24% | ||
| ROICexc | 19.56% | ||
| ROICexgc | 26.98% | ||
| OM | 7.16% | ||
| PM (TTM) | 4.23% | ||
| GM | 27.51% | ||
| FCFM | 1.13% |
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-Score6
Asset Turnover2.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.42 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 102.72% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 8.39 | ||
| Cash Conversion | 24% | ||
| Profit Quality | 26.74% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 4.48 |
F-Score6
WACC8.05%
ROIC/WACC2.39
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 Y41.7%
EPS Next 2Y25.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.7%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
Revenue Next Year12.09%
Revenue Next 2Y9.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.31%
EBIT growth 3Y28.29%
EBIT growth 5Y26.18%
EBIT Next Year16.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-89.7%
FCF growth 3Y117.44%
FCF growth 5YN/A
OCF growth 1Y-83.23%
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 6 / 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 41.7% in the next year.