RESOURCES CONNECTION INC (RGP)
US76122Q1058 - Common Stock
Overall RGP gets a fundamental rating of 6 out of 10. We evaluated RGP against 80 industry peers in the Professional Services industry. RGP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RGP is valued quite cheap, but it does not seem to be growing. Finally RGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RGP had positive earnings in the past year.
RGP had a positive operating cash flow in the past year.
Each year in the past 5 years RGP has been profitable.
Each year in the past 5 years RGP had a positive operating cash flow.
1.2 Ratios
RGP has a Return On Assets (2.38%) which is comparable to the rest of the industry.
RGP has a Return On Equity (3.00%) which is in line with its industry peers.
RGP's Return On Invested Capital of 3.97% is in line compared to the rest of the industry. RGP outperforms 43.04% of its industry peers.
RGP had an Average Return On Invested Capital over the past 3 years of 10.28%. This is significantly below the industry average of 18.09%.
The last Return On Invested Capital (3.97%) 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 | 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 (2.04%) which is comparable to the rest of the industry.
RGP's Profit Margin has declined in the last couple of years.
RGP's Operating Margin of 4.00% is in line compared to the rest of the industry. RGP outperforms 41.77% of its industry peers.
RGP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.20%, RGP is in line with its industry, outperforming 48.10% of the companies in the same industry.
RGP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, RGP has more shares outstanding
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
An Altman-Z score of 3.46 indicates that RGP is not in any danger for bankruptcy at the moment.
RGP's Altman-Z score of 3.46 is in line compared to the rest of the industry. RGP outperforms 59.49% of its industry peers.
RGP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.43
WACC9.21%
2.3 Liquidity
RGP has a Current Ratio of 2.84. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP has a Current ratio of 2.84. This is amongst the best in the industry. RGP outperforms 83.54% of its industry peers.
A Quick Ratio of 2.84 indicates that RGP has no problem at all paying its short term obligations.
RGP's Quick ratio of 2.84 is amongst the best of the industry. RGP outperforms 83.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
The earnings per share for RGP have decreased strongly by -54.37% 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 -19.17%.
The Revenue has been decreasing by -2.79% on average over the past years.
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
Based on estimates for the next years, RGP will show a very strong growth in Earnings Per Share. The EPS will grow by 20.78% on average per year.
Based on estimates for the next years, RGP will show a small growth in Revenue. The Revenue will grow by 4.04% on average per year.
EPS Next Y-45.7%
EPS Next 2Y20.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.19%
Revenue Next 2Y4.04%
Revenue Next 3YN/A
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
RGP is valuated reasonably with a Price/Earnings ratio of 11.52.
RGP's Price/Earnings ratio is rather cheap when compared to the industry. RGP is cheaper than 89.87% of the companies in the same industry.
RGP is valuated cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.20, the valuation of RGP can be described as very cheap.
RGP's Price/Forward Earnings ratio is rather cheap when compared to the industry. RGP is cheaper than 96.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, RGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGP is valued cheaply inside the industry as 93.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 91.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RGP's earnings are expected to grow with 20.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.67%, RGP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, RGP pays a better dividend. On top of this RGP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, RGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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 Years7
5.3 Sustainability
154.30% of the earnings are spent on dividend by RGP. This is not a sustainable payout ratio.
The dividend of RGP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP154.3%
EPS Next 2Y20.78%
EPS Next 3YN/A
RESOURCES CONNECTION INC
NASDAQ:RGP (11/22/2024, 8:01:57 PM)
After market: 8.41 0 (0%)8.41
+0.01 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap281.48M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 6.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4% | ||
| PM (TTM) | 2.04% | ||
| GM | 38.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.37%
EPS 3Y-4.27%
EPS 5Y
EPS Q2Q%
EPS Next Y-45.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.17%
Revenue growth 3Y0.17%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y