20.18 USD
+0.01 (+0.05%)
20.18 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RCMT. RCMT was compared to 87 industry peers in the Professional Services industry. While RCMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RCMT. This makes RCMT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RCMT was profitable.
In the past year RCMT had a positive cash flow from operations.
Of the past 5 years RCMT 4 years were profitable.
In the past 5 years RCMT always reported a positive cash flow from operatings.
1.2 Ratios
RCMT has a better Return On Assets (10.02%) than 80.46% of its industry peers.
Looking at the Return On Equity, with a value of 35.95%, RCMT belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Return On Invested Capital of RCMT (19.80%) is better than 91.95% of its industry peers.
RCMT had an Average Return On Invested Capital over the past 3 years of 29.36%. This is significantly above the industry average of 12.17%.
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
Looking at the Profit Margin, with a value of 4.53%, RCMT is in line with its industry, outperforming 58.62% of the companies in the same industry.
In the last couple of years the Profit Margin of RCMT has grown nicely.
The Operating Margin of RCMT (7.55%) is better than 63.22% of its industry peers.
RCMT's Operating Margin has improved in the last couple of years.
RCMT's Gross Margin of 27.90% is on the low side compared to the rest of the industry. RCMT is outperformed by 63.22% of its industry peers.
In the last couple of years the Gross Margin of RCMT has grown nicely.
| 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.
Compared to 1 year ago, RCMT has less shares outstanding
RCMT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RCMT has a worse debt to assets ratio.
2.2 Solvency
RCMT has an Altman-Z score of 4.11. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.11, RCMT is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
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: 64.37% 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's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. RCMT is outperformed by 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.11 |
ROIC/WACC2.5
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.85, RCMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, RCMT is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
| 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%.
RCMT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.16% yearly.
Looking at the last year, RCMT shows a small growth in Revenue. The Revenue has grown by 5.75% in the last year.
Measured over the past years, RCMT shows a small growth in Revenue. The Revenue has been growing by 7.81% on average per year.
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
The Earnings Per Share is expected to grow by 26.98% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.68% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 9.99 indicates a reasonable valuation of RCMT.
Based on the Price/Earnings ratio, RCMT is valued cheaper than 85.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCMT to the average of the S&P500 Index (26.41), we can say RCMT is valued rather cheaply.
A Price/Forward Earnings ratio of 7.49 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 89.66% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. RCMT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
RCMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RCMT is cheaper than 82.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCMT is valued a bit more expensive than the industry average as 64.37% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 377.61 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
RCMT's 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)0.22
PEG (5Y)0.26
EPS Next 2Y26.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RCMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.18
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change11.53%
Ins Owners34.81%
Ins Owner Change-0.71%
Market Cap149.53M
Revenue(TTM)278.38M
Net Income(TTM)13.58M
Analysts82.5
Price Target31.62 (56.69%)
Short Float %4.41%
Short Ratio5.59
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)-3.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 7.49 | ||
| P/S | 0.5 | ||
| P/FCF | 377.61 | ||
| P/OCF | 53.39 | ||
| P/B | 3.96 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)2.02
EY10.01%
EPS(NY)2.69
Fwd EY13.34%
FCF(TTM)0.05
FCFY0.26%
OCF(TTM)0.38
OCFY1.87%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.22
PEG (5Y)0.26
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 | 4.11 |
F-Score4
WACC7.92%
ROIC/WACC2.5
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.