RESOURCES CONNECTION INC (RGP)
US76122Q1058 - Common Stock
Overall RGP gets a fundamental rating of 6 out of 10. We evaluated RGP against 81 industry peers in the Professional Services industry. While RGP has a great health rating, its profitability is only average at the moment. RGP has a bad growth rate and is valued cheaply. Finally RGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RGP had positive earnings in the past year.
In the past year RGP had a positive cash flow from operations.
RGP had positive earnings in each of the past 5 years.
In the past 5 years RGP always reported a positive cash flow from operatings.
1.2 Ratios
RGP has a Return On Assets (2.38%) which is comparable to the rest of the industry.
The Return On Equity of RGP (3.00%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.97%, RGP perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
RGP had an Average Return On Invested Capital over the past 3 years of 10.28%. This is significantly below the industry average of 17.86%.
The 3 year average ROIC (10.28%) for RGP is well above the current ROIC(3.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 3% | ||
| ROIC | 3.97% |
ROA(3y)8.63%
ROA(5y)7.22%
ROE(3y)12.06%
ROE(5y)10.63%
ROIC(3y)10.28%
ROIC(5y)8.66%
1.3 Margins
RGP has a Profit Margin of 2.04%. This is comparable to the rest of the industry: RGP outperforms 46.15% of its industry peers.
In the last couple of years the Profit Margin of RGP has declined.
RGP's Operating Margin of 4.00% is in line compared to the rest of the industry. RGP outperforms 41.03% of its industry peers.
RGP's Operating Margin has declined in the last couple of years.
RGP has a Gross Margin (38.20%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4% | ||
| PM (TTM) | 2.04% | ||
| GM | 38.2% |
OM growth 3Y-7.52%
OM growth 5Y-8.17%
PM growth 3Y-6.01%
PM growth 5Y-5.11%
GM growth 3Y0.47%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RGP is still creating some value.
RGP has about the same amout of shares outstanding than it did 1 year ago.
RGP has more shares outstanding than it did 5 years ago.
There is no outstanding debt for RGP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RGP has an Altman-Z score of 3.40. This indicates that RGP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.40, RGP is doing good in the industry, outperforming 60.26% of the companies in the same industry.
There is no outstanding debt for RGP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.42
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.84 indicates that RGP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.84, RGP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
A Quick Ratio of 2.84 indicates that RGP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.84, RGP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
RGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.37%.
Measured over the past years, RGP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.04% on average per year.
RGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.17%.
Measured over the past years, RGP shows a decrease in Revenue. The Revenue has been decreasing by -2.79% on average per year.
EPS 1Y (TTM)-54.37%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-100%
Revenue 1Y (TTM)-19.17%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-19.53%
3.2 Future
The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
RGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.56% yearly.
EPS Next Y-61.99%
EPS Next 2Y11.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.72%
Revenue Next 2Y2.3%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 11.45, the valuation of RGP can be described as reasonable.
RGP's Price/Earnings ratio is rather cheap when compared to the industry. RGP is cheaper than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.55, RGP is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.24, the valuation of RGP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 92.31% of the companies listed in the same industry.
RGP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGP is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
RGP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RGP is cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.19 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGP has a Yearly Dividend Yield of 6.91%, which is a nice return.
Compared to an average industry Dividend Yield of 1.85, RGP pays a better dividend. On top of this RGP pays more dividend than 100.00% of the companies listed in the same industry.
RGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of RGP has a limited annual growth rate of 1.89%.
RGP has paid a dividend for at least 10 years, which is a reliable track record.
As RGP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.89%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
154.30% of the earnings are spent on dividend by RGP. This is not a sustainable payout ratio.
RGP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP154.3%
EPS Next 2Y11.43%
EPS Next 3YN/A
RESOURCES CONNECTION INC
NASDAQ:RGP (12/26/2024, 8:00:02 PM)
After market: 8.36 0 (0%)8.36
+0.24 (+2.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.51%
Inst Owner ChangeN/A
Ins Owners1.94%
Ins Owner Change0.87%
Market Cap279.81M
Analysts48
Price Target13.39 (60.17%)
Short Float %3.16%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Dividend Growth(5Y)1.89%
DP154.3%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)89.03%
Min EPS beat(2)-100%
Max EPS beat(2)278.06%
EPS beat(4)3
Avg EPS beat(4)124.33%
Min EPS beat(4)-100%
Max EPS beat(4)278.06%
EPS beat(8)7
Avg EPS beat(8)73.28%
EPS beat(12)11
Avg EPS beat(12)63.45%
EPS beat(16)14
Avg EPS beat(16)82.39%
Revenue beat(2)1
Avg Revenue beat(2)1.33%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)4.36%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)4.36%
Revenue beat(8)3
Avg Revenue beat(8)0.06%
Revenue beat(12)7
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)1.23%
PT rev (1m)0%
PT rev (3m)-16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-96.97%
EPS NY rev (1m)-30%
EPS NY rev (3m)-52.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.27%
Revenue NY rev (1m)-1.6%
Revenue NY rev (3m)-4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.47 | ||
| P/FCF | 12.19 | ||
| P/OCF | 11.75 | ||
| P/B | 0.69 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)0.73
EY8.73%
EPS(NY)1.15
Fwd EY13.81%
FCF(TTM)0.69
FCFY8.21%
OCF(TTM)0.71
OCFY8.51%
SpS17.91
BVpS12.17
TBVpS4.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 3% | ||
| ROCE | 5.47% | ||
| ROIC | 3.97% | ||
| ROICexc | 5% | ||
| ROICexgc | 16.61% | ||
| OM | 4% | ||
| PM (TTM) | 2.04% | ||
| GM | 38.2% | ||
| FCFM | 3.83% |
ROA(3y)8.63%
ROA(5y)7.22%
ROE(3y)12.06%
ROE(5y)10.63%
ROIC(3y)10.28%
ROIC(5y)8.66%
ROICexc(3y)13.68%
ROICexc(5y)11.32%
ROICexgc(3y)41.16%
ROICexgc(5y)34.71%
ROCE(3y)14.15%
ROCE(5y)11.92%
ROICexcg growth 3Y-5.93%
ROICexcg growth 5Y-14.66%
ROICexc growth 3Y-5.91%
ROICexc growth 5Y-13.1%
OM growth 3Y-7.52%
OM growth 5Y-8.17%
PM growth 3Y-6.01%
PM growth 5Y-5.11%
GM growth 3Y0.47%
GM growth 5Y0.08%
F-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 10.4% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 68.49 | ||
| Cash Conversion | 73.89% | ||
| Profit Quality | 188.05% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 3.4 |
F-Score5
WACC9.52%
ROIC/WACC0.42
Cap/Depr(3y)23.98%
Cap/Depr(5y)27.19%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.35%
Profit Quality(3y)104.77%
Profit Quality(5y)124.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-54.37%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-100%
EPS Next Y-61.99%
EPS Next 2Y11.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.17%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-19.53%
Revenue Next Year-6.72%
Revenue Next 2Y2.3%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-57.27%
EBIT growth 3Y-7.36%
EBIT growth 5Y-10.73%
EBIT Next Year19.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-44.04%
FCF growth 3Y-16.81%
FCF growth 5Y-10.77%
OCF growth 1Y-45.47%
OCF growth 3Y-18.13%
OCF growth 5Y-12.86%