20.2 USD
-0.1 (-0.47%)
RCMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 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. These ratings could make RCMT a good candidate 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.
- In the past 5 years RCMT always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 10.09%, RCMT belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 31.65%, RCMT belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
- RCMT has a Return On Invested Capital of 19.24%. This is amongst the best in the industry. RCMT outperforms 88.64% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 11.85%.
- The last Return On Invested Capital (19.24%) 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 | 10.09% | ||
| ROE | 31.65% | ||
| ROIC | 19.24% |
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 4.23%, RCMT perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- In the last couple of years the Profit Margin of RCMT has grown nicely.
- RCMT's Operating Margin of 7.16% is fine compared to the rest of the industry. RCMT outperforms 60.23% of its industry peers.
- In the last couple of years the Operating Margin of RCMT has grown nicely.
- RCMT's Gross Margin of 27.51% is on the low side compared to the rest of the industry. RCMT is outperformed by 60.23% of its industry peers.
- In the last couple of years the Gross Margin of RCMT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 4.23% | ||
| GM | 27.51% |
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.
- RCMT has less shares outstanding than it did 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
- An Altman-Z score of 4.45 indicates that RCMT is not in any danger for bankruptcy at the moment.
- RCMT has a better Altman-Z score (4.45) than 81.82% of its industry peers.
- The Debt to FCF ratio of RCMT is 9.42, which is on the high side as it means it would take RCMT, 9.42 years of fcf income to pay off all of its debts.
- RCMT's Debt to FCF ratio of 9.42 is in line compared to the rest of the industry. RCMT outperforms 46.59% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that RCMT is somewhat dependend on debt financing.
- RCMT has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: RCMT outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 4.45 |
ROIC/WACC2.38
WACC8.07%
2.3 Liquidity
- A Current Ratio of 1.98 indicates that RCMT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.98, RCMT is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- A Quick Ratio of 1.98 indicates that RCMT should not have too much problems paying its short term obligations.
- The Quick ratio of RCMT (1.98) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.59% over the past year.
- 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.70%.
- 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)13.7%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%16.44%
3.2 Future
- RCMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.17% yearly.
- Based on estimates for the next years, RCMT will show a quite strong growth in Revenue. The Revenue will grow by 9.99% on average per year.
EPS Next Y41.4%
EPS Next 2Y25.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.15%
Revenue Next 2Y9.99%
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.
- 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 10.00, the valuation of RCMT can be described as very reasonable.
- Based on the Price/Earnings ratio, RCMT is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. RCMT is valued rather cheaply when compared to this.
- RCMT is valuated cheaply with a Price/Forward Earnings ratio of 7.72.
- Based on the Price/Forward Earnings ratio, RCMT is valued cheaper than 89.77% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RCMT to the average of the S&P500 Index (25.98), we can say RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
- 84.09% of the companies in the same industry are more expensive than RCMT, based on the Enterprise Value to EBITDA ratio.
- RCMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.74 | ||
| EV/EBITDA | 7.4 |
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.
- RCMT has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as RCMT's earnings are expected to grow with 25.17% in the coming years.
PEG (NY)0.24
PEG (5Y)0.26
EPS Next 2Y25.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for RCMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 of RCM TECHNOLOGIES INC (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.
What are the PE and PB ratios of RCM TECHNOLOGIES INC (RCMT) stock?
The Price/Earnings (PE) ratio for RCM TECHNOLOGIES INC (RCMT) is 10 and the Price/Book (PB) ratio is 3.62.
What is the expected EPS growth for RCM TECHNOLOGIES INC (RCMT) stock?
The Earnings per Share (EPS) of RCM TECHNOLOGIES INC (RCMT) is expected to grow by 41.4% in the next year.