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RADCOM LTD (RDCM) Stock Fundamental Analysis

NASDAQ:RDCM - Nasdaq - IL0010826688 - Common Stock - Currency: USD

12.81  -0.98 (-7.11%)

Fundamental Rating

5

Overall RDCM gets a fundamental rating of 5 out of 10. We evaluated RDCM against 284 industry peers in the Software industry. While RDCM has a great health rating, there are worries on its profitability. RDCM has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year RDCM was profitable.
RDCM had a positive operating cash flow in the past year.
In the past 5 years RDCM reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: RDCM reported negative operating cash flow in multiple years.
RDCM Yearly Net Income VS EBIT VS OCF VS FCFRDCM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M -5M -10M

1.2 Ratios

With a decent Return On Assets value of 3.45%, RDCM is doing good in the industry, outperforming 71.01% of the companies in the same industry.
RDCM has a Return On Equity of 4.50%. This is in the better half of the industry: RDCM outperforms 69.57% of its industry peers.
Industry RankSector Rank
ROA 3.45%
ROE 4.5%
ROIC N/A
ROA(3y)-1.51%
ROA(5y)-3.17%
ROE(3y)-2.03%
ROE(5y)-4.18%
ROIC(3y)N/A
ROIC(5y)N/A
RDCM Yearly ROA, ROE, ROICRDCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5

1.3 Margins

RDCM's Profit Margin of 7.19% is fine compared to the rest of the industry. RDCM outperforms 72.83% of its industry peers.
Looking at the Gross Margin, with a value of 73.32%, RDCM is in the better half of the industry, outperforming 61.59% of the companies in the same industry.
RDCM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 7.19%
GM 73.32%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5Y-0.17%
RDCM Yearly Profit, Operating, Gross MarginsRDCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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8

2. Health

2.1 Basic Checks

RDCM does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for RDCM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RDCM Yearly Shares OutstandingRDCM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
RDCM Yearly Total Debt VS Total AssetsRDCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

RDCM has an Altman-Z score of 5.29. This indicates that RDCM is financially healthy and has little risk of bankruptcy at the moment.
RDCM's Altman-Z score of 5.29 is fine compared to the rest of the industry. RDCM outperforms 65.94% of its industry peers.
RDCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.29
ROIC/WACCN/A
WACC9.11%
RDCM Yearly LT Debt VS Equity VS FCFRDCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M

2.3 Liquidity

A Current Ratio of 4.84 indicates that RDCM has no problem at all paying its short term obligations.
RDCM's Current ratio of 4.84 is amongst the best of the industry. RDCM outperforms 87.32% of its industry peers.
A Quick Ratio of 4.83 indicates that RDCM has no problem at all paying its short term obligations.
The Quick ratio of RDCM (4.83) is better than 87.32% of its industry peers.
Industry RankSector Rank
Current Ratio 4.84
Quick Ratio 4.83
RDCM Yearly Current Assets VS Current LiabilitesRDCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.23% over the past year.
EPS 1Y (TTM)29.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.09%

3.2 Future

Based on estimates for the next years, RDCM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.29% on average per year.
RDCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.89% yearly.
EPS Next Y8.68%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.79%
Revenue Next 2Y11.89%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

RDCM Yearly Revenue VS EstimatesRDCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M
RDCM Yearly EPS VS EstimatesRDCM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.25 indicates a correct valuation of RDCM.
Based on the Price/Earnings ratio, RDCM is valued cheaper than 86.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of RDCM to the average of the S&P500 Index (29.63), we can say RDCM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.03, RDCM is valued correctly.
Based on the Price/Forward Earnings ratio, RDCM is valued cheaper than 88.41% of the companies in the same industry.
RDCM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.25
Fwd PE 14.03
RDCM Price Earnings VS Forward Price EarningsRDCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, RDCM is valued a bit cheaper than 64.13% of the companies in the same industry.
Industry RankSector Rank
P/FCF 45.47
EV/EBITDA N/A
RDCM Per share dataRDCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y11.29%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

RDCM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RADCOM LTD

NASDAQ:RDCM (2/21/2025, 8:00:01 PM)

12.81

-0.98 (-7.11%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12 2025-02-12/bmo
Earnings (Next)05-13 2025-05-13/bmo
Inst Owners53.5%
Inst Owner Change-77.04%
Ins Owners14.99%
Ins Owner ChangeN/A
Market Cap203.42M
Analysts85
Price Target16.32 (27.4%)
Short Float %0.12%
Short Ratio0.16
Dividend
Industry RankSector 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)2
Avg EPS beat(2)60.76%
Min EPS beat(2)58.13%
Max EPS beat(2)63.4%
EPS beat(4)4
Avg EPS beat(4)136.59%
Min EPS beat(4)58.13%
Max EPS beat(4)256.51%
EPS beat(8)8
Avg EPS beat(8)154.08%
EPS beat(12)12
Avg EPS beat(12)119.97%
EPS beat(16)15
Avg EPS beat(16)110.83%
Revenue beat(2)2
Avg Revenue beat(2)1.54%
Min Revenue beat(2)1.35%
Max Revenue beat(2)1.73%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.73%
Revenue beat(8)6
Avg Revenue beat(8)0.94%
Revenue beat(12)7
Avg Revenue beat(12)0.43%
Revenue beat(16)11
Avg Revenue beat(16)1.15%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
Industry RankSector Rank
PE 15.25
Fwd PE 14.03
P/S 3.94
P/FCF 45.47
P/OCF 43.23
P/B 2.47
P/tB 2.56
EV/EBITDA N/A
EPS(TTM)0.84
EY6.56%
EPS(NY)0.91
Fwd EY7.13%
FCF(TTM)0.28
FCFY2.2%
OCF(TTM)0.3
OCFY2.31%
SpS3.25
BVpS5.19
TBVpS5.01
PEG (NY)1.76
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.45%
ROE 4.5%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 7.19%
GM 73.32%
FCFM 8.67%
ROA(3y)-1.51%
ROA(5y)-3.17%
ROE(3y)-2.03%
ROE(5y)-4.18%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.91%
GM growth 5Y-0.17%
F-Score8
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 37.36%
Cap/Sales 0.45%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 120.56%
Current Ratio 4.84
Quick Ratio 4.83
Altman-Z 5.29
F-Score8
WACC9.11%
ROIC/WACCN/A
Cap/Depr(3y)50.03%
Cap/Depr(5y)60.97%
Cap/Sales(3y)0.62%
Cap/Sales(5y)1.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8%
EPS Next Y8.68%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%16.09%
Revenue Next Year12.79%
Revenue Next 2Y11.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y84.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-23.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.83%
OCF growth 3YN/A
OCF growth 5YN/A