RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
NASDAQ:RGP - Nasdaq - US76122Q1058 - Common Stock - Currency: USD
Overall RGP gets a fundamental rating of 5 out of 10. We evaluated RGP against 83 industry peers in the Professional Services industry. No worries on liquidiy or solvency for RGP as it has an excellent financial health rating, but there are worries on the profitability. RGP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RGP was profitable.
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
With a Return On Assets value of -28.75%, RGP is not doing good in the industry: 87.95% of the companies in the same industry are doing better.
RGP has a worse Return On Equity (-38.87%) than 81.93% of its industry peers.
RGP has a worse Return On Invested Capital (1.48%) than 63.86% of its industry peers.
RGP had an Average Return On Invested Capital over the past 3 years of 10.28%. This is below the industry average of 13.57%.
The last Return On Invested Capital (1.48%) for RGP is well below the 3 year average (10.28%), which needs to be investigated, but indicates that RGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.75% | ||
| ROE | -38.87% | ||
| ROIC | 1.48% |
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's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.10%, RGP is doing worse than 63.86% of the companies in the same industry.
RGP's Operating Margin has declined in the last couple of years.
RGP's Gross Margin of 37.67% is in line compared to the rest of the industry. RGP outperforms 54.22% of 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 | 1.1% | ||
| PM (TTM) | N/A | ||
| GM | 37.67% |
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
RGP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RGP has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RGP has been increased compared to 5 years ago.
RGP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.83 indicates that RGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
RGP has a Altman-Z score of 2.83. This is comparable to the rest of the industry: RGP outperforms 56.63% of its industry peers.
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 | 2.83 |
ROIC/WACC0.17
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.63 indicates that RGP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.63, RGP belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
A Quick Ratio of 2.63 indicates that RGP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.63, RGP belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
The earnings per share for RGP have decreased strongly by -65.14% in the last year.
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 -16.27%.
The Revenue has been decreasing by -2.79% on average over the past years.
EPS 1Y (TTM)-65.14%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-147.06%
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-14.45%
3.2 Future
The Earnings Per Share is expected to grow by 1.04% on average over the next years.
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-85.88%
EPS Next 2Y1.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.6%
Revenue Next 2Y-4.73%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
With a Price/Earnings ratio of 13.92, RGP is valued correctly.
RGP's Price/Earnings ratio is a bit cheaper when compared to the industry. RGP is cheaper than 67.47% of the companies in the same industry.
RGP is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.57, the valuation of RGP can be described as very cheap.
Based on the Price/Forward Earnings ratio, RGP is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
RGP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 5.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 80.72% of the companies listed in the same industry.
RGP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RGP is more expensive than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.22 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.59%, RGP is a good candidate for dividend investing.
The stock price of RGP dropped by -37.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.41, 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 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.59% |
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.
RGP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.89%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
RGP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of RGP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-17.36%
EPS Next 2Y1.04%
EPS Next 3YN/A
5.29
-0.08 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.88%
Inst Owner ChangeN/A
Ins Owners2.57%
Ins Owner Change0.73%
Market Cap174.94M
Analysts48
Price Target11.39 (115.31%)
Short Float %2.17%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.59% |
Yearly Dividend0.56
Dividend Growth(5Y)1.89%
DP-17.36%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2636.34%
Min EPS beat(2)20.79%
Max EPS beat(2)5251.89%
EPS beat(4)3
Avg EPS beat(4)1362.68%
Min EPS beat(4)-100%
Max EPS beat(4)5251.89%
EPS beat(8)7
Avg EPS beat(8)727.74%
EPS beat(12)11
Avg EPS beat(12)494.35%
EPS beat(16)15
Avg EPS beat(16)397.12%
Revenue beat(2)1
Avg Revenue beat(2)1.9%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)5.22%
Revenue beat(4)2
Avg Revenue beat(4)1.62%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)5.22%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)10
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)-14.92%
EPS NQ rev (1m)-125%
EPS NQ rev (3m)-103.75%
EPS NY rev (1m)-3.7%
EPS NY rev (3m)-62.86%
Revenue NQ rev (1m)-10.92%
Revenue NQ rev (3m)-18.81%
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 5.57 | ||
| P/S | 0.31 | ||
| P/FCF | 63.22 | ||
| P/OCF | 32.92 | ||
| P/B | 0.63 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7 |
EPS(TTM)0.38
EY7.18%
EPS(NY)0.95
Fwd EY17.95%
FCF(TTM)0.08
FCFY1.58%
OCF(TTM)0.16
OCFY3.04%
SpS16.94
BVpS8.4
TBVpS4.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.75% | ||
| ROE | -38.87% | ||
| ROCE | 2.04% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.95% | ||
| ROICexgc | 4.04% | ||
| OM | 1.1% | ||
| PM (TTM) | N/A | ||
| GM | 37.67% | ||
| FCFM | 0.49% |
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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 30.02% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 17.33 | ||
| Cash Conversion | 36.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 2.83 |
F-Score5
WACC8.98%
ROIC/WACC0.17
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)-65.14%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-147.06%
EPS Next Y-85.88%
EPS Next 2Y1.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-14.45%
Revenue Next Year-12.6%
Revenue Next 2Y-4.73%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-84.27%
EBIT growth 3Y-7.36%
EBIT growth 5Y-10.73%
EBIT Next Year-3.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-96.89%
FCF growth 3Y-16.81%
FCF growth 5Y-10.77%
OCF growth 1Y-94.14%
OCF growth 3Y-18.13%
OCF growth 5Y-12.86%