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RADCOM LTD (RDCM) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:RDCM - IL0010826688 - Common Stock

12.93 USD
-0.48 (-3.58%)
Last: 12/16/2025, 3:50:52 PM
Fundamental Rating

5

Taking everything into account, RDCM scores 5 out of 10 in our fundamental rating. RDCM was compared to 280 industry peers in the Software industry. RDCM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RDCM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

RDCM had positive earnings in the past year.
In multiple years RDCM reported negative net income over the last 5 years.
RDCM had a positive operating cash flow in 4 of the past 5 years.
RDCM Yearly Net Income VS EBIT VS OCF VS FCFRDCM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M -10M

1.2 Ratios

With a decent Return On Assets value of 6.90%, RDCM is doing good in the industry, outperforming 77.14% of the companies in the same industry.
RDCM has a Return On Equity of 9.02%. This is in the better half of the industry: RDCM outperforms 73.93% of its industry peers.
The Return On Invested Capital of RDCM (4.07%) is better than 71.79% of its industry peers.
Industry RankSector Rank
ROA 6.9%
ROE 9.02%
ROIC 4.07%
ROA(3y)2.17%
ROA(5y)-0.7%
ROE(3y)2.89%
ROE(5y)-0.87%
ROIC(3y)N/A
ROIC(5y)N/A
RDCM Yearly ROA, ROE, ROICRDCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5

1.3 Margins

RDCM has a Profit Margin of 14.00%. This is in the better half of the industry: RDCM outperforms 77.86% of its industry peers.
Looking at the Operating Margin, with a value of 8.54%, RDCM is in the better half of the industry, outperforming 73.93% of the companies in the same industry.
RDCM has a Gross Margin of 75.13%. This is in the better half of the industry: RDCM outperforms 66.43% of its industry peers.
RDCM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 8.54%
PM (TTM) 14%
GM 75.13%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y1.07%
RDCM Yearly Profit, Operating, Gross MarginsRDCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RDCM is destroying value.
Compared to 1 year ago, RDCM has more shares outstanding
The number of shares outstanding for RDCM has been increased compared to 5 years ago.
RDCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RDCM Yearly Shares OutstandingRDCM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
RDCM Yearly Total Debt VS Total AssetsRDCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

An Altman-Z score of 4.93 indicates that RDCM is not in any danger for bankruptcy at the moment.
RDCM has a better Altman-Z score (4.93) than 71.07% of its industry peers.
There is no outstanding debt for RDCM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.93
ROIC/WACC0.46
WACC8.85%
RDCM Yearly LT Debt VS Equity VS FCFRDCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M

2.3 Liquidity

RDCM has a Current Ratio of 4.92. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.
RDCM has a Current ratio of 4.92. This is amongst the best in the industry. RDCM outperforms 87.86% of its industry peers.
RDCM has a Quick Ratio of 4.87. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.87, RDCM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.92
Quick Ratio 4.87
RDCM Yearly Current Assets VS Current LiabilitesRDCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.60% over the past year.
Looking at the last year, RDCM shows a quite strong growth in Revenue. The Revenue has grown by 18.22% in the last year.
RDCM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.07% yearly.
EPS 1Y (TTM)18.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.09%
Revenue 1Y (TTM)18.22%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%16.23%

3.2 Future

The Earnings Per Share is expected to grow by 7.39% on average over the next years.
RDCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.56% yearly.
EPS Next Y26.29%
EPS Next 2Y11.84%
EPS Next 3Y7.39%
EPS Next 5YN/A
Revenue Next Year18.18%
Revenue Next 2Y14.74%
Revenue Next 3Y13.56%
Revenue Next 5YN/A

3.3 Evolution

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.
RDCM Yearly Revenue VS EstimatesRDCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M 80M
RDCM Yearly EPS VS EstimatesRDCM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.68, which indicates a correct valuation of RDCM.
Based on the Price/Earnings ratio, RDCM is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.55. RDCM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.31, the valuation of RDCM can be described as correct.
Based on the Price/Forward Earnings ratio, RDCM is valued cheaply inside the industry as 83.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, RDCM is valued a bit cheaper.
Industry RankSector Rank
PE 12.68
Fwd PE 12.31
RDCM Price Earnings VS Forward Price EarningsRDCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RDCM is valued a bit cheaper than 67.14% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 33.59
RDCM Per share dataRDCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y11.84%
EPS Next 3Y7.39%

0

5. Dividend

5.1 Amount

No dividends for RDCM!.
Industry RankSector Rank
Dividend Yield 0%

RADCOM LTD

NASDAQ:RDCM (12/16/2025, 3:50:52 PM)

12.93

-0.48 (-3.58%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-12 2025-11-12/bmo
Earnings (Next)02-10 2026-02-10/bmo
Inst Owners54.85%
Inst Owner Change-0.4%
Ins Owners14.85%
Ins Owner ChangeN/A
Market Cap207.27M
Revenue(TTM)61.00M
Net Income(TTM)9.38M
Analysts85
Price Target18.36 (42%)
Short Float %0.52%
Short Ratio1.18
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)15.74%
Min EPS beat(2)8.93%
Max EPS beat(2)22.55%
EPS beat(4)4
Avg EPS beat(4)15.62%
Min EPS beat(4)8.93%
Max EPS beat(4)22.55%
EPS beat(8)8
Avg EPS beat(8)27.8%
EPS beat(12)12
Avg EPS beat(12)86.29%
EPS beat(16)16
Avg EPS beat(16)91.86%
Revenue beat(2)2
Avg Revenue beat(2)0.89%
Min Revenue beat(2)0.22%
Max Revenue beat(2)1.55%
Revenue beat(4)4
Avg Revenue beat(4)2.24%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.72%
Revenue beat(8)8
Avg Revenue beat(8)2.31%
Revenue beat(12)10
Avg Revenue beat(12)1.65%
Revenue beat(16)13
Avg Revenue beat(16)1.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)8.33%
EPS NY rev (3m)8.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 12.68
Fwd PE 12.31
P/S 3.09
P/FCF N/A
P/OCF N/A
P/B 1.99
P/tB 2.04
EV/EBITDA 33.59
EPS(TTM)1.02
EY7.89%
EPS(NY)1.05
Fwd EY8.13%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS4.18
BVpS6.49
TBVpS6.34
PEG (NY)0.48
PEG (5Y)N/A
Graham Number12.2
Profitability
Industry RankSector Rank
ROA 6.9%
ROE 9.02%
ROCE 5.15%
ROIC 4.07%
ROICexc 4.07%
ROICexgc 4.16%
OM 8.54%
PM (TTM) 14%
GM 75.13%
FCFM N/A
ROA(3y)2.17%
ROA(5y)-0.7%
ROE(3y)2.89%
ROE(5y)-0.87%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y1.07%
F-ScoreN/A
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.92
Quick Ratio 4.87
Altman-Z 4.93
F-ScoreN/A
WACC8.85%
ROIC/WACC0.46
Cap/Depr(3y)43.86%
Cap/Depr(5y)54.9%
Cap/Sales(3y)0.49%
Cap/Sales(5y)0.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.09%
EPS Next Y26.29%
EPS Next 2Y11.84%
EPS Next 3Y7.39%
EPS Next 5YN/A
Revenue 1Y (TTM)18.22%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%16.23%
Revenue Next Year18.18%
Revenue Next 2Y14.74%
Revenue Next 3Y13.56%
Revenue Next 5YN/A
EBIT growth 1Y665.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y135.94%
FCF growth 3Y89.23%
FCF growth 5Y11.48%
OCF growth 1Y133.55%
OCF growth 3Y76.52%
OCF growth 5Y9.97%

RADCOM LTD / RDCM FAQ

What is the fundamental rating for RDCM stock?

ChartMill assigns a fundamental rating of 5 / 10 to RDCM.


Can you provide the valuation status for RADCOM LTD?

ChartMill assigns a valuation rating of 5 / 10 to RADCOM LTD (RDCM). This can be considered as Fairly Valued.


What is the profitability of RDCM stock?

RADCOM LTD (RDCM) has a profitability rating of 4 / 10.


Can you provide the expected EPS growth for RDCM stock?

The Earnings per Share (EPS) of RADCOM LTD (RDCM) is expected to grow by 26.29% in the next year.