RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
NASDAQ:RCMT - Nasdaq - US7493604000 - Common Stock - Currency: USD
RCMT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. RCMT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RCMT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make RCMT suitable for value and quality 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.
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 better Return On Assets (11.21%) than 83.95% of its industry peers.
With an excellent Return On Equity value of 39.19%, RCMT belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.88%, RCMT belongs to the top of the industry, outperforming 95.06% 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 12.53%.
The last Return On Invested Capital (22.88%) 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 | 11.21% | ||
| ROE | 39.19% | ||
| ROIC | 22.88% |
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 (4.66%) is better than 60.49% of its industry peers.
In the last couple of years the Profit Margin of RCMT has grown nicely.
RCMT has a Operating Margin of 7.51%. This is in the better half of the industry: RCMT outperforms 64.20% of its industry peers.
In the last couple of years the Operating Margin of RCMT has grown nicely.
RCMT has a Gross Margin of 27.98%. This is in the lower half of the industry: RCMT underperforms 64.20% of its industry peers.
In the last couple of years the Gross Margin of RCMT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 4.66% | ||
| GM | 27.98% |
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.
The number of shares outstanding for RCMT has been reduced compared to 5 years ago.
Compared to 1 year ago, RCMT has a worse debt to assets ratio.
2.2 Solvency
RCMT has an Altman-Z score of 4.51. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCMT (4.51) is better than 79.01% of its industry peers.
RCMT has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.78, RCMT is doing good in the industry, outperforming 74.07% of the companies in the same industry.
RCMT has a Debt/Equity ratio of 0.70. This is a neutral value indicating RCMT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, RCMT is doing worse than 60.49% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for RCMT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 4.51 |
ROIC/WACC2.75
WACC8.32%
2.3 Liquidity
RCMT has a Current Ratio of 1.62. 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 (1.62) which is comparable to the rest of the industry.
RCMT has a Quick Ratio of 1.62. 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 1.62, RCMT is doing good in the industry, outperforming 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for RCMT have decreased strongly by -16.02% 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
The Revenue has grown by 8.53% 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)-16.02%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%12.5%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%17.42%
3.2 Future
RCMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.06% yearly.
The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.
EPS Next Y39.26%
EPS Next 2Y24.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.15%
Revenue Next 2Y9.6%
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
A Price/Earnings ratio of 14.34 indicates a correct valuation of RCMT.
RCMT's Price/Earnings ratio is a bit cheaper when compared to the industry. RCMT is cheaper than 79.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCMT to the average of the S&P500 Index (27.21), we can say RCMT is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.65 indicates a reasonable valuation of RCMT.
RCMT's Price/Forward Earnings ratio is rather cheap when compared to the industry. RCMT is cheaper than 88.89% of the companies in the same industry.
RCMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
RCMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RCMT is cheaper than 82.72% of the companies in the same industry.
74.07% of the companies in the same industry are more expensive than RCMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.03 | ||
| EV/EBITDA | 8.07 |
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.
The excellent profitability rating of RCMT may justify a higher PE ratio.
RCMT's earnings are expected to grow with 24.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)0.37
EPS Next 2Y24.06%
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 (7/1/2025, 5:20:01 PM)
24.81
+1.24 (+5.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners39.2%
Inst Owner Change-1.06%
Ins Owners35.21%
Ins Owner Change0.8%
Market Cap183.35M
Analysts82.5
Price Target31.62 (27.45%)
Short Float %3.69%
Short Ratio3.63
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)0
Avg EPS beat(2)-28.01%
Min EPS beat(2)-52.27%
Max EPS beat(2)-3.74%
EPS beat(4)0
Avg EPS beat(4)-18.09%
Min EPS beat(4)-52.27%
Max EPS beat(4)-3.74%
EPS beat(8)3
Avg EPS beat(8)-3.64%
EPS beat(12)6
Avg EPS beat(12)-0.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)6.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)6.45%
Revenue beat(8)1
Avg Revenue beat(8)-1.9%
Revenue beat(12)2
Avg Revenue beat(12)-2.51%
Revenue beat(16)6
Avg Revenue beat(16)2.16%
PT rev (1m)3.33%
PT rev (3m)-16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)0.22%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.63 | ||
| P/FCF | 13.03 | ||
| P/OCF | 11.18 | ||
| P/B | 5.3 | ||
| P/tB | 14.72 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)1.73
EY6.97%
EPS(NY)2.57
Fwd EY10.36%
FCF(TTM)1.9
FCFY7.68%
OCF(TTM)2.22
OCFY8.95%
SpS39.37
BVpS4.68
TBVpS1.69
PEG (NY)0.37
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 39.19% | ||
| ROCE | 32.26% | ||
| ROIC | 22.88% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 38.35% | ||
| OM | 7.51% | ||
| PM (TTM) | 4.66% | ||
| GM | 27.98% | ||
| FCFM | 4.84% |
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-Score6
Asset Turnover2.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 106.2% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 9.06 | ||
| Cash Conversion | 68.2% | ||
| Profit Quality | 103.78% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 4.51 |
F-Score6
WACC8.32%
ROIC/WACC2.75
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)-16.02%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%12.5%
EPS Next Y39.26%
EPS Next 2Y24.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.53%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%17.42%
Revenue Next Year13.15%
Revenue Next 2Y9.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.24%
EBIT growth 3Y28.29%
EBIT growth 5Y26.18%
EBIT Next Year15.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.31%
FCF growth 3Y117.44%
FCF growth 5YN/A
OCF growth 1Y-34.33%
OCF growth 3Y88.58%
OCF growth 5YN/A