RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
NASDAQ:RCMT - US7493604000 - Common Stock
26.27 USD
+0.33 (+1.27%)
26.27 USD
0 (0%)
RCMT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. RCMT gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on RCMT. With these ratings, RCMT could be worth investigating further for value and quality 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's Return On Assets of 11.21% is amongst the best of the industry. RCMT outperforms 86.42% of its industry peers.
With an excellent Return On Equity value of 39.19%, RCMT belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
RCMT has a better Return On Invested Capital (22.88%) than 93.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCMT is significantly above the industry average of 12.68%.
The last Return On Invested Capital (22.88%) 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 | 11.21% | ||
| ROE | 39.19% | ||
| ROIC | 22.88% |
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 4.66%, RCMT is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
RCMT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.51%, RCMT is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
RCMT's Operating Margin has improved in the last couple of years.
The Gross Margin of RCMT (27.98%) is worse than 64.20% of its industry peers.
In the last couple of years the Gross Margin of RCMT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 4.66% | ||
| GM | 27.98% |
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
The number of shares outstanding for RCMT has been reduced compared to 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 4.64. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
RCMT has a Altman-Z score of 4.64. This is in the better half of the industry: RCMT outperforms 79.01% of its industry peers.
The Debt to FCF ratio of RCMT is 1.78, which is an excellent value as it means it would take RCMT, only 1.78 years of fcf income to pay off all of its debts.
RCMT has a better Debt to FCF ratio (1.78) than 70.37% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that RCMT is somewhat dependend on debt financing.
RCMT has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: RCMT underperforms 61.73% of its industry peers.
Even though the debt/equity ratio score it not favorable for RCMT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 4.64 |
ROIC/WACC2.77
WACC8.25%
2.3 Liquidity
RCMT has a Current Ratio of 1.62. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.62, RCMT is doing good in the industry, outperforming 61.73% of the companies in the same industry.
RCMT has a Quick Ratio of 1.62. This is a normal value and indicates that RCMT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.62, RCMT is doing good in the industry, outperforming 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
RCMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.34%.
RCMT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.16% yearly.
RCMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
The Revenue has been growing slightly by 7.81% on average over the past years.
EPS 1Y (TTM)-5.34%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%46.81%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%13.02%
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.
Based on estimates for the next years, RCMT will show a quite strong growth in Revenue. The Revenue will grow by 9.68% on average per year.
EPS Next Y44.75%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 13.47, RCMT is valued correctly.
Based on the Price/Earnings ratio, RCMT is valued cheaply inside the industry as 80.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RCMT to the average of the S&P500 Index (27.03), we can say RCMT is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.76, the valuation of RCMT can be described as very reasonable.
85.19% of the companies in the same industry are more expensive than RCMT, based on the Price/Forward Earnings ratio.
RCMT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCMT is valued a bit cheaper than the industry average as 79.01% of the companies are valued more expensively.
74.07% of the companies in the same industry are more expensive than RCMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 8.82 |
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.
RCMT's earnings are expected to grow with 26.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)0.34
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 |
26.27
+0.33 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners39.38%
Inst Owner Change2.22%
Ins Owners35.21%
Ins Owner Change-0.01%
Market Cap194.66M
Analysts82.5
Price Target31.62 (20.37%)
Short Float %5.94%
Short Ratio4.48
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)0
Avg EPS beat(2)-28.01%
Min EPS beat(2)-52.27%
Max EPS beat(2)-3.74%
EPS beat(4)0
Avg EPS beat(4)-18.09%
Min EPS beat(4)-52.27%
Max EPS beat(4)-3.74%
EPS beat(8)3
Avg EPS beat(8)-3.64%
EPS beat(12)6
Avg EPS beat(12)-0.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)6.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)6.45%
Revenue beat(8)1
Avg Revenue beat(8)-1.9%
Revenue beat(12)2
Avg Revenue beat(12)-2.51%
Revenue beat(16)6
Avg Revenue beat(16)2.16%
PT rev (1m)0%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.95%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 9.76 | ||
| P/S | 0.67 | ||
| P/FCF | 13.83 | ||
| P/OCF | 11.87 | ||
| P/B | 5.63 | ||
| P/tB | 15.63 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)1.95
EY7.42%
EPS(NY)2.69
Fwd EY10.25%
FCF(TTM)1.9
FCFY7.23%
OCF(TTM)2.21
OCFY8.43%
SpS39.26
BVpS4.67
TBVpS1.68
PEG (NY)0.3
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 39.19% | ||
| ROCE | 32.26% | ||
| ROIC | 22.88% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 38.35% | ||
| OM | 7.51% | ||
| PM (TTM) | 4.66% | ||
| GM | 27.98% | ||
| FCFM | 4.84% |
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
ROICexcg growth 3Y2.63%
ROICexcg 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-Score6
Asset Turnover2.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 106.2% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 9.06 | ||
| Cash Conversion | 68.2% | ||
| Profit Quality | 103.78% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 4.64 |
F-Score6
WACC8.25%
ROIC/WACC2.77
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)-5.34%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%46.81%
EPS Next Y44.75%
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%13.02%
Revenue Next Year11.93%
Revenue Next 2Y9.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.24%
EBIT growth 3Y28.29%
EBIT growth 5Y26.18%
EBIT Next Year15.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.31%
FCF growth 3Y117.44%
FCF growth 5YN/A
OCF growth 1Y-34.33%
OCF growth 3Y88.58%
OCF growth 5YN/A