RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
USA - NASDAQ:RCMT - US7493604000 - Common Stock
23.35 USD
+0.29 (+1.26%)
22.92 USD
-0.43 (-1.84%)
RCMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 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
RCMT had positive earnings in the past year.
In the past year RCMT had a positive cash flow from operations.
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
RCMT's Return On Assets of 10.02% is amongst the best of the industry. RCMT outperforms 82.76% of its industry peers.
RCMT has a better Return On Equity (35.95%) than 88.51% of its industry peers.
RCMT's Return On Invested Capital of 19.80% is amongst the best of the industry. RCMT outperforms 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 13.25%.
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
With a decent Profit Margin value of 4.53%, RCMT is doing good in the industry, outperforming 60.92% of the companies in the same industry.
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 62.07% of the companies in the same industry.
RCMT's Operating Margin has improved in the last couple of years.
RCMT has a Gross Margin (27.90%) which is in line with 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.
The debt/assets ratio for RCMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.25 indicates that RCMT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.25, RCMT is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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.
The Debt to FCF ratio of RCMT (89.60) is worse than 65.52% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that RCMT is somewhat dependend on debt financing.
RCMT's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. RCMT is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.25 |
ROIC/WACC2.46
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
RCMT has a Current ratio of 1.85. This is in the better half of the industry: RCMT outperforms 70.11% 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.
With a decent Quick ratio value of 1.85, RCMT is doing good in the industry, outperforming 70.11% 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 for RCMT have decreased by -5.34% in the last year.
The Earnings Per Share has been growing by 39.16% on average over the past years. This is a very strong growth
RCMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.01%.
RCMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.81% yearly.
EPS 1Y (TTM)-5.34%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%46.81%
Revenue 1Y (TTM)11.01%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%13.02%
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.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 11.97 indicates a reasonable valuation of RCMT.
RCMT's Price/Earnings ratio is rather cheap when compared to the industry. RCMT is cheaper than 82.76% 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 26.13.
The Price/Forward Earnings ratio is 8.67, which indicates a very decent valuation of RCMT.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
RCMT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCMT is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
65.52% 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 | 436.93 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
RCMT's 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)0.26
PEG (5Y)0.31
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 |
23.35
+0.29 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change1.52%
Ins Owners34.81%
Ins Owner Change-0.71%
Market Cap173.02M
Revenue(TTM)299.92M
Net Income(TTM)13.58M
Analysts82.5
Price Target31.62 (35.42%)
Short Float %5.51%
Short Ratio6.56
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)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 8.67 | ||
| P/S | 0.58 | ||
| P/FCF | 436.93 | ||
| P/OCF | 61.77 | ||
| P/B | 4.58 | ||
| P/tB | 11.06 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)1.95
EY8.35%
EPS(NY)2.69
Fwd EY11.53%
FCF(TTM)0.05
FCFY0.23%
OCF(TTM)0.38
OCFY1.62%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.26
PEG (5Y)0.31
Graham Number14.96
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 | 4.25 |
F-Score4
WACC8.04%
ROIC/WACC2.46
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)-5.34%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%46.81%
EPS Next Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.01%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%13.02%
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.