RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
USA - NASDAQ:RCMT - US7493604000 - Common Stock
27.49 USD
+0.69 (+2.57%)
Taking everything into account, RCMT scores 6 out of 10 in our fundamental rating. RCMT was compared to 82 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make RCMT suitable 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.
In the past 5 years RCMT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.02%, RCMT belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
With an excellent Return On Equity value of 35.95%, RCMT belongs to the best of the industry, outperforming 89.02% 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 92.68% 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 12.76%.
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
The Profit Margin of RCMT (4.53%) is better than 60.98% of its industry peers.
In the last couple of years the Profit Margin of RCMT has grown nicely.
Looking at the Operating Margin, with a value of 7.55%, RCMT is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
RCMT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.90%, RCMT is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
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.
RCMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCMT has less shares outstanding
The debt/assets ratio for RCMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.41 indicates that RCMT is not in any danger for bankruptcy at the moment.
RCMT's Altman-Z score of 4.41 is fine compared to the rest of the industry. RCMT outperforms 75.61% of its industry peers.
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.
RCMT has a Debt to FCF ratio of 89.60. This is in the lower half of the industry: RCMT underperforms 69.51% of its industry peers.
RCMT has a Debt/Equity ratio of 0.92. This is a neutral value indicating RCMT is somewhat dependend on debt financing.
RCMT has a worse Debt to Equity ratio (0.92) than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.41 |
ROIC/WACC2.44
WACC8.1%
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.
RCMT has a Current ratio of 1.85. This is in the better half of the industry: RCMT outperforms 70.73% of its industry peers.
A Quick Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
RCMT has a better Quick ratio (1.85) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
RCMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.34%.
Measured over the past years, RCMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.16% on average per year.
RCMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.01%.
The Revenue has been growing slightly by 7.81% on average over the past years.
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
The Earnings Per Share is expected to grow by 26.98% on average over the next years. This is a very strong growth
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 Y44.75%
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
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.
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 14.10, the valuation of RCMT can be described as correct.
Based on the Price/Earnings ratio, RCMT is valued cheaper than 80.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCMT to the average of the S&P500 Index (27.41), we can say RCMT is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.21, which indicates a very decent valuation of RCMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCMT indicates a rather cheap valuation: RCMT is cheaper than 84.15% of the companies listed in the same industry.
RCMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
80.49% of the companies in the same industry are more expensive than RCMT, based on the Enterprise Value to EBITDA ratio.
69.51% 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 | 514.4 | ||
| EV/EBITDA | 9.2 |
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.
A more expensive valuation may be justified as RCMT's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)0.31
PEG (5Y)0.36
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 |
NASDAQ:RCMT (9/18/2025, 8:19:13 PM)
27.49
+0.69 (+2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners39.38%
Inst Owner Change2.22%
Ins Owners35.21%
Ins Owner Change-0.48%
Market Cap203.70M
Analysts82.5
Price Target31.62 (15.02%)
Short Float %8.16%
Short Ratio7.49
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)-3.26%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)3.95%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 10.21 | ||
| P/S | 0.68 | ||
| P/FCF | 514.4 | ||
| P/OCF | 72.72 | ||
| P/B | 5.39 | ||
| P/tB | 13.03 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)1.95
EY7.09%
EPS(NY)2.69
Fwd EY9.8%
FCF(TTM)0.05
FCFY0.19%
OCF(TTM)0.38
OCFY1.38%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.31
PEG (5Y)0.36
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
ROICexcg growth 3Y2.63%
ROICexcg 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 | 4.41 |
F-Score4
WACC8.1%
ROIC/WACC2.44
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 Y44.75%
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 Year15.78%
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