19.68 USD
-0.35 (-1.75%)
19.68 USD
0 (0%)
RCMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. RCMT may be a bit undervalued, certainly considering the very reasonable score on growth This makes RCMT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RCMT was profitable.
In the past year RCMT had a positive cash flow from operations.
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 10.02%. This is amongst the best in the industry. RCMT outperforms 80.46% of its industry peers.
With an excellent Return On Equity value of 35.95%, RCMT belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.80%, RCMT belongs to the top of the industry, outperforming 91.95% 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 12.15%.
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's Profit Margin of 4.53% is in line compared to the rest of the industry. RCMT outperforms 58.62% 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 7.55%, RCMT is in the better half of the industry, outperforming 63.22% of the companies in the same industry.
RCMT's Operating Margin has improved in the last couple of years.
RCMT has a worse Gross Margin (27.90%) 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 | 7.55% | ||
| 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
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.
RCMT has less shares outstanding than it did 5 years ago.
RCMT has a worse debt/assets ratio than last year.
2.2 Solvency
RCMT has an Altman-Z score of 4.09. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, RCMT is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
The Debt to FCF ratio of RCMT is 89.60, which is on the high side as it means it would take RCMT, 89.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCMT (89.60) is worse than 64.37% 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 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.09 |
ROIC/WACC2.52
WACC7.87%
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.
The Current ratio of RCMT (1.85) is better than 66.67% of its industry peers.
RCMT has a Quick 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.
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
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.
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
RCMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.98% yearly.
RCMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.68% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.74, the valuation of RCMT can be described as reasonable.
RCMT's Price/Earnings ratio is rather cheap when compared to the industry. RCMT is cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. RCMT is valued rather cheaply when compared to this.
RCMT is valuated cheaply with a Price/Forward Earnings ratio of 7.31.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RCMT to the average of the S&P500 Index (36.12), we can say RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 7.31 |
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 83.91% of the companies listed in the same industry.
64.37% of the companies in the same industry are cheaper than RCMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 368.25 | ||
| EV/EBITDA | 7.07 |
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.
A more expensive valuation may be justified as RCMT's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)0.21
PEG (5Y)0.25
EPS Next 2Y26.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCMT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.68
-0.35 (-1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change11.53%
Ins Owners34.81%
Ins Owner Change-0.71%
Market Cap145.83M
Revenue(TTM)278.38M
Net Income(TTM)13.58M
Analysts82.5
Price Target31.62 (60.67%)
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)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.49 | ||
| P/FCF | 368.25 | ||
| P/OCF | 52.06 | ||
| P/B | 3.86 | ||
| P/tB | 9.32 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)2.02
EY10.26%
EPS(NY)2.69
Fwd EY13.68%
FCF(TTM)0.05
FCFY0.27%
OCF(TTM)0.38
OCFY1.92%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.21
PEG (5Y)0.25
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 | 4.09 |
F-Score4
WACC7.87%
ROIC/WACC2.52
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.