RCM TECHNOLOGIES INC (RCMT)
US7493604000 - Common Stock
Overall RCMT gets a fundamental rating of 6 out of 10. We evaluated RCMT against 81 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. RCMT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make RCMT suitable 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.
Of the past 5 years RCMT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RCMT (13.97%) is better than 92.50% of its industry peers.
RCMT's Return On Equity of 65.28% is amongst the best of the industry. RCMT outperforms 95.00% of its industry peers.
RCMT has a better Return On Invested Capital (27.89%) than 95.00% 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 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.97% | ||
| ROE | 65.28% | ||
| ROIC | 27.89% |
ROA(3y)17.6%
ROA(5y)8.81%
ROE(3y)57.63%
ROE(5y)29.09%
ROIC(3y)29.97%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.40%, RCMT is in the better half of the industry, outperforming 75.00% 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 8.85%, RCMT is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
In the last couple of years the Operating Margin of RCMT has grown nicely.
RCMT has a Gross Margin of 29.13%. This is in the lower half of the industry: RCMT underperforms 65.00% of its industry peers.
RCMT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.85% | ||
| PM (TTM) | 6.4% | ||
| GM | 29.13% |
OM growth 3YN/A
OM growth 5Y20.43%
PM growth 3YN/A
PM growth 5Y36.54%
GM growth 3Y4.05%
GM growth 5Y3.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RCMT is creating value.
The number of shares outstanding for RCMT has been reduced compared to 1 year ago.
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 3.87. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCMT (3.87) is better than 73.75% of its industry peers.
RCMT has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as RCMT would need 3.25 years to pay back of all of its debts.
RCMT has a Debt to FCF ratio (3.25) which is in line with its industry peers.
RCMT has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RCMT (1.19) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 3.87 |
ROIC/WACC3.21
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.56 indicates that RCMT should not have too much problems paying its short term obligations.
RCMT has a better Current ratio (1.56) than 62.50% of its industry peers.
RCMT has a Quick Ratio of 1.56. 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 1.56, RCMT is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for RCMT have decreased by 0.00% in the last year.
The Earnings Per Share has been growing by 50.24% on average over the past years. This is a very strong growth
Looking at the last year, RCMT shows a decrease in Revenue. The Revenue has decreased by -7.53% in the last year.
Measured over the past years, RCMT shows a small growth in Revenue. The Revenue has been growing by 5.61% on average per year.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y50.24%
EPS growth Q2Q38.3%
Revenue 1Y (TTM)-7.53%
Revenue growth 3Y20.51%
Revenue growth 5Y5.61%
Revenue growth Q2Q1.15%
3.2 Future
RCMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.93% yearly.
Based on estimates for the next years, RCMT will show a small growth in Revenue. The Revenue will grow by 6.59% on average per year.
EPS Next Y5.84%
EPS Next 2Y8.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.73%
Revenue Next 2Y6.59%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
RCMT is valuated reasonably with a Price/Earnings ratio of 9.60.
Based on the Price/Earnings ratio, RCMT is valued cheaper than 93.75% of the companies in the same industry.
RCMT is valuated cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.07 indicates a reasonable valuation of RCMT.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RCMT to the average of the S&P500 Index (20.92), we can say RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCMT is valued cheaper than 87.50% of the companies in the same industry.
RCMT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RCMT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RCMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)0.19
EPS Next 2Y8.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RCMT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RCM TECHNOLOGIES INC
NASDAQ:RCMT (5/1/2024, 7:19:07 PM)
19.1
+0.15 (+0.79%)
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 Cap151.65M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.07 | ||
| 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)1.64
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.97% | ||
| ROE | 65.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.85% | ||
| PM (TTM) | 6.4% | ||
| GM | 29.13% | ||
| 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 Turnover2.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| 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)
Growth
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y5.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.53%
Revenue growth 3Y20.51%
Revenue growth 5Y
Revenue growth 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
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