RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
USA - NASDAQ:RCMT - US7493604000 - Common Stock
23.11 USD
-0.78 (-3.26%)
23.11 USD
0 (0%)
RCMT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While RCMT has a great profitability rating, 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
RCMT had positive earnings in the past year.
RCMT had a positive operating cash flow in the past year.
RCMT had positive earnings in 4 of the past 5 years.
RCMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RCMT (10.02%) is better than 80.49% of its industry peers.
RCMT's Return On Equity of 35.95% is amongst the best of the industry. RCMT outperforms 87.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.80%, RCMT belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
RCMT had an Average Return On Invested Capital over the past 3 years of 29.36%. This is significantly above the industry average of 13.20%.
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
RCMT has a Profit Margin of 4.53%. This is comparable to the rest of the industry: RCMT outperforms 59.76% of its industry peers.
RCMT's Profit Margin has improved in the last couple of years.
RCMT has a Operating Margin (7.55%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RCMT has grown nicely.
RCMT's Gross Margin of 27.90% is on the low side compared to the rest of the industry. RCMT is outperformed by 63.41% 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
RCMT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 4.28 indicates that RCMT is not in any danger for bankruptcy at the moment.
RCMT has a Altman-Z score of 4.28. This is in the better half of the industry: RCMT outperforms 75.61% of its industry peers.
RCMT has a debt to FCF ratio of 89.60. This is a negative value and a sign of low solvency as RCMT would need 89.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 89.60, RCMT is doing worse than 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that RCMT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, RCMT is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 89.6 | ||
| Altman-Z | 4.28 |
ROIC/WACC2.45
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.85 indicates that RCMT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, RCMT is in the better half of the industry, outperforming 69.51% 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.
With a decent Quick ratio value of 1.85, RCMT is doing good in the industry, outperforming 69.51% 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.34%.
The Earnings Per Share has been growing by 39.16% on average over the past years. This is a very strong growth
The Revenue has grown by 11.01% in the past year. This is quite good.
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)-5.34%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%46.81%
Revenue 1Y (TTM)11.01%
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.
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
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
Based on the Price/Earnings ratio of 11.85, the valuation of RCMT can be described as reasonable.
80.49% of the companies in the same industry are more expensive than RCMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.02. RCMT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.58, the valuation of RCMT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaper than 86.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCMT is valued cheaper than 80.49% of the companies in the same industry.
RCMT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RCMT is more expensive than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 432.44 | ||
| EV/EBITDA | 8.33 |
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.
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 26.98% in the coming years.
PEG (NY)0.26
PEG (5Y)0.3
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 |
23.11
-0.78 (-3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.72%
Inst Owner Change0%
Ins Owners34.81%
Ins Owner Change-0.71%
Market Cap171.25M
Analysts82.5
Price Target31.62 (36.82%)
Short Float %7.27%
Short Ratio7.58
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)-3.26%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0.42%
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 | 11.85 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.57 | ||
| P/FCF | 432.44 | ||
| P/OCF | 61.14 | ||
| P/B | 4.53 | ||
| P/tB | 10.95 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)1.95
EY8.44%
EPS(NY)2.69
Fwd EY11.65%
FCF(TTM)0.05
FCFY0.23%
OCF(TTM)0.38
OCFY1.64%
SpS40.47
BVpS5.1
TBVpS2.11
PEG (NY)0.26
PEG (5Y)0.3
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
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-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 | 4.28 |
F-Score4
WACC8.07%
ROIC/WACC2.45
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 Y45.37%
EPS Next 2Y26.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.01%
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-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