RCM TECHNOLOGIES INC (RCMT) Stock Fundamental Analysis
NASDAQ:RCMT - Nasdaq - US7493604000 - Common Stock - Currency: USD
Taking everything into account, RCMT scores 7 out of 10 in our fundamental rating. RCMT was compared to 82 industry peers in the Professional Services industry. RCMT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Of the past 5 years RCMT 4 years were profitable.
RCMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCMT has a better Return On Assets (11.21%) than 84.15% of its industry peers.
The Return On Equity of RCMT (39.19%) is better than 86.59% of its industry peers.
RCMT has a better Return On Invested Capital (22.88%) than 96.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCMT is significantly above the industry average of 12.28%.
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
With a decent Profit Margin value of 4.66%, RCMT is doing good in the industry, outperforming 62.20% 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 64.63% of the companies in the same industry.
In the last couple of years the Operating Margin of RCMT has grown nicely.
Looking at the Gross Margin, with a value of 27.98%, RCMT is doing worse than 64.63% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RCMT is creating value.
Compared to 1 year ago, RCMT has less shares outstanding
Compared to 5 years ago, RCMT has less shares outstanding
Compared to 1 year ago, RCMT has a worse debt to assets ratio.
2.2 Solvency
RCMT has an Altman-Z score of 4.62. This indicates that RCMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCMT (4.62) is better than 79.27% 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.
The Debt to FCF ratio of RCMT (1.78) is better than 74.39% of its industry peers.
RCMT has a Debt/Equity ratio of 0.70. This is a neutral value indicating RCMT is somewhat dependend on debt financing.
The Debt to Equity ratio of RCMT (0.70) is worse than 60.98% of its industry peers.
Although RCMT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 4.62 |
ROIC/WACC2.59
WACC8.82%
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.
RCMT's Current ratio of 1.62 is in line compared to the rest of the industry. RCMT outperforms 58.54% of its industry peers.
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 Quick ratio value of 1.62, RCMT perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
RCMT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for RCMT have decreased strongly by -16.02% in the last year.
The Earnings Per Share has been growing by 39.16% on average over the past years. This is a very strong growth
Looking at the last year, RCMT shows a quite strong growth in Revenue. The Revenue has grown by 8.53% 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)-16.02%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%12.5%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%17.42%
3.2 Future
The Earnings Per Share is expected to grow by 24.06% on average over the next years. This is a very strong growth
Based on estimates for the next years, RCMT will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
EPS Next Y39.26%
EPS Next 2Y24.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.15%
Revenue Next 2Y9.6%
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
RCMT is valuated correctly with a Price/Earnings ratio of 14.69.
Based on the Price/Earnings ratio, RCMT is valued a bit cheaper than 73.17% of the companies in the same industry.
RCMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.89, the valuation of RCMT can be described as reasonable.
Based on the Price/Forward Earnings ratio, RCMT is valued cheaper than 84.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RCMT to the average of the S&P500 Index (36.44), we can say RCMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
82.93% of the companies in the same industry are more expensive than RCMT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RCMT is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 8.68 |
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.
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 24.06% in the coming years.
PEG (NY)0.37
PEG (5Y)0.38
EPS Next 2Y24.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCMT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.42
-0.16 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners39.2%
Inst Owner Change0%
Ins Owners35.21%
Ins Owner Change0.8%
Market Cap187.85M
Analysts82.5
Price Target31.62 (24.39%)
Short Float %5.6%
Short Ratio4.88
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)6.9%
EPS NY rev (1m)0.22%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.65 | ||
| P/FCF | 13.35 | ||
| P/OCF | 11.45 | ||
| P/B | 5.43 | ||
| P/tB | 15.09 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.73
EY6.81%
EPS(NY)2.57
Fwd EY10.11%
FCF(TTM)1.9
FCFY7.49%
OCF(TTM)2.22
OCFY8.73%
SpS39.37
BVpS4.68
TBVpS1.69
PEG (NY)0.37
PEG (5Y)0.38
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 | 4.62 |
F-Score6
WACC8.82%
ROIC/WACC2.59
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)-16.02%
EPS 3Y25.74%
EPS 5Y39.16%
EPS Q2Q%12.5%
EPS Next Y39.26%
EPS Next 2Y24.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.53%
Revenue growth 3Y10.94%
Revenue growth 5Y7.81%
Sales Q2Q%17.42%
Revenue Next Year13.15%
Revenue Next 2Y9.6%
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