RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
USA - NASDAQ:RCMT - US7493604000 - Common Stock
18.9 USD
-0.4 (-2.07%)
Overall RCMT gets a fundamental rating of 6 out of 10. We evaluated RCMT against 86 industry peers in the Professional Services industry. RCMT has an excellent profitability rating, but there are some minor concerns on its financial health. RCMT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes RCMT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RCMT was profitable.
RCMT had a positive operating cash flow in the past year.
RCMT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RCMT had a positive operating cash flow.
1.2 Ratios
RCMT has a Return On Assets of 10.02%. This is amongst the best in the industry. RCMT outperforms 81.40% of its industry peers.
RCMT has a Return On Equity of 35.95%. This is amongst the best in the industry. RCMT outperforms 87.21% of its industry peers.
RCMT's Return On Invested Capital of 19.80% is amongst the best of the industry. RCMT outperforms 91.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 22.51%.
The last Return On Invested Capital (19.80%) 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 | 10.02% | ||
| ROE | 35.95% | ||
| ROIC | 19.8% |
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
With a Profit Margin value of 4.53%, RCMT perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
RCMT's Profit Margin has improved in the last couple of years.
RCMT has a Operating Margin of 7.55%. This is in the better half of the industry: RCMT outperforms 61.63% of its industry peers.
RCMT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.90%, RCMT is doing worse than 62.79% of the companies in the same industry.
RCMT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.55% | ||
| PM (TTM) | 4.53% | ||
| GM | 27.9% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RCMT is creating value.
The number of shares outstanding for RCMT has been reduced compared to 1 year ago.
RCMT has less shares outstanding than it did 5 years ago.
RCMT has a worse debt/assets ratio than last year.
2.2 Solvency
RCMT has an Altman-Z score of 4.05. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
RCMT has a Altman-Z score of 4.05. This is in the better half of the industry: RCMT outperforms 74.42% of its industry peers.
The Debt to FCF ratio of RCMT is 89.60, which is on the high side as it means it would take RCMT, 89.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 89.60, RCMT is not doing good in the industry: 66.28% of the companies in the same industry are doing better.
RCMT has a Debt/Equity ratio of 0.92. This is a neutral value indicating RCMT is somewhat dependend on debt financing.
RCMT has a worse Debt to Equity ratio (0.92) than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.05 |
ROIC/WACC2.51
WACC7.9%
2.3 Liquidity
RCMT has a Current Ratio of 1.85. 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 of 1.85. This is in the better half of the industry: RCMT outperforms 67.44% of its industry peers.
RCMT has a Quick Ratio of 1.85. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RCMT (1.85) is better than 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
RCMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.59%.
Measured over the past years, RCMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.16% on average per year.
Looking at the last year, RCMT shows a small growth in Revenue. The Revenue has grown by 5.75% in the last year.
The Revenue has been growing slightly by 7.81% on average over the past years.
EPS 1Y (TTM)3.59%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%20%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
3.2 Future
Based on estimates for the next years, RCMT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.98% on average per year.
RCMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.68% yearly.
EPS Next Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.93%
Revenue Next 2Y9.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 9.36, which indicates a very decent valuation of RCMT.
Based on the Price/Earnings ratio, RCMT is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. RCMT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.02, which indicates a rather cheap valuation of RCMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCMT indicates a rather cheap valuation: RCMT is cheaper than 93.02% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. RCMT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
RCMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RCMT is cheaper than 87.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCMT is valued a bit more expensive than 66.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 353.66 | ||
| EV/EBITDA | 6.84 |
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.
A more expensive valuation may be justified as RCMT's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)0.21
PEG (5Y)0.24
EPS Next 2Y26.98%
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 (11/13/2025, 8:00:02 PM)
18.9
-0.4 (-2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change4.81%
Ins Owners34.81%
Ins Owner Change-0.71%
Market Cap140.05M
Revenue(TTM)278.38M
Net Income(TTM)13.58M
Analysts82.5
Price Target31.62 (67.3%)
Short Float %5.51%
Short Ratio6.56
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)1
Avg EPS beat(2)2.68%
Min EPS beat(2)-3.74%
Max EPS beat(2)9.11%
EPS beat(4)1
Avg EPS beat(4)-13.85%
Min EPS beat(4)-52.27%
Max EPS beat(4)9.11%
EPS beat(8)3
Avg EPS beat(8)-2.66%
EPS beat(12)6
Avg EPS beat(12)-0.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)6.45%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)6.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)5
Avg Revenue beat(16)1.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.02 | ||
| P/S | 0.47 | ||
| P/FCF | 353.66 | ||
| P/OCF | 50 | ||
| P/B | 3.71 | ||
| P/tB | 8.96 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)2.02
EY10.69%
EPS(NY)2.69
Fwd EY14.25%
FCF(TTM)0.05
FCFY0.28%
OCF(TTM)0.38
OCFY2%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.21
PEG (5Y)0.24
Graham Number15.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 35.95% | ||
| ROCE | 27.92% | ||
| ROIC | 19.8% | ||
| ROICexc | 21.23% | ||
| ROICexgc | 30.03% | ||
| OM | 7.55% | ||
| PM (TTM) | 4.53% | ||
| GM | 27.9% | ||
| FCFM | 0.13% |
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
ROICexgc growth 3Y2.63%
ROICexgc 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-Score4
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 108.48% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 9 | ||
| Cash Conversion | 11.27% | ||
| Profit Quality | 2.92% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 4.05 |
F-Score4
WACC7.9%
ROIC/WACC2.51
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)3.59%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%20%
EPS Next Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.75%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
Revenue Next Year11.93%
Revenue Next 2Y9.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.23%
EBIT growth 3Y28.29%
EBIT growth 5Y26.18%
EBIT Next Year16.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-98.28%
FCF growth 3Y117.44%
FCF growth 5YN/A
OCF growth 1Y-88.34%
OCF growth 3Y88.58%
OCF growth 5YN/A
RCM TECHNOLOGIES INC / RCMT FAQ
Can you provide the ChartMill fundamental rating for RCM TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to RCMT.
What is the valuation status for RCMT stock?
ChartMill assigns a valuation rating of 8 / 10 to RCM TECHNOLOGIES INC (RCMT). This can be considered as Undervalued.
What is the profitability of RCMT stock?
RCM TECHNOLOGIES INC (RCMT) has a profitability rating of 8 / 10.
How financially healthy is RCM TECHNOLOGIES INC?
The financial health rating of RCM TECHNOLOGIES INC (RCMT) is 5 / 10.
Can you provide the expected EPS growth for RCMT stock?
The Earnings per Share (EPS) of RCM TECHNOLOGIES INC (RCMT) is expected to grow by 45.37% in the next year.