RADCOM LTD (RDCM) Fundamental Analysis & Valuation

NASDAQ:RDCM • IL0010826688

Current stock price

10.83 USD
+0.12 (+1.12%)
Last:

This RDCM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. RDCM Profitability Analysis

1.1 Basic Checks

  • RDCM had positive earnings in the past year.
  • The reported net income has been mixed in the past 5 years: RDCM reported negative net income in multiple 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M -5M 10M -10M

1.2 Ratios

  • RDCM's Return On Assets of 8.27% is amongst the best of the industry. RDCM outperforms 82.31% of its industry peers.
  • RDCM has a better Return On Equity (10.51%) than 75.09% of its industry peers.
  • With a decent Return On Invested Capital value of 5.38%, RDCM is doing good in the industry, outperforming 73.29% of the companies in the same industry.
Industry RankSector Rank
ROA 8.27%
ROE 10.51%
ROIC 5.38%
ROA(3y)5.69%
ROA(5y)1.82%
ROE(3y)7.43%
ROE(5y)2.34%
ROIC(3y)N/A
ROIC(5y)N/A
RDCM Yearly ROA, ROE, ROICRDCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

1.3 Margins

  • RDCM's Profit Margin of 16.77% is amongst the best of the industry. RDCM outperforms 82.67% of its industry peers.
  • With a decent Operating Margin value of 11.61%, RDCM is doing good in the industry, outperforming 77.62% of the companies in the same industry.
  • RDCM has a better Gross Margin (75.95%) than 69.31% of its industry peers.
  • In the last couple of years the Gross Margin of RDCM has remained more or less at the same level.
Industry RankSector Rank
OM 11.61%
PM (TTM) 16.77%
GM 75.95%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.61%
GM growth 5Y1.26%
RDCM Yearly Profit, Operating, Gross MarginsRDCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. RDCM Health Analysis

2.1 Basic Checks

  • RDCM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
  • 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.
RDCM Yearly Shares OutstandingRDCM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
RDCM Yearly Total Debt VS Total AssetsRDCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M

2.2 Solvency

  • RDCM has an Altman-Z score of 4.47. This indicates that RDCM is financially healthy and has little risk of bankruptcy at the moment.
  • RDCM's Altman-Z score of 4.47 is fine compared to the rest of the industry. RDCM outperforms 75.09% of its industry peers.
  • RDCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.47
ROIC/WACC0.6
WACC8.94%
RDCM Yearly LT Debt VS Equity VS FCFRDCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M 40M 60M 80M 100M

2.3 Liquidity

  • RDCM has a Current Ratio of 5.75. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 5.75, RDCM belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
  • A Quick Ratio of 5.74 indicates that RDCM has no problem at all paying its short term obligations.
  • RDCM has a better Quick ratio (5.74) than 89.53% of its industry peers.
Industry RankSector Rank
Current Ratio 5.75
Quick Ratio 5.74
RDCM Yearly Current Assets VS Current LiabilitesRDCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RDCM Growth Analysis

3.1 Past

  • RDCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.95%, which is quite impressive.
  • Measured over the past years, RDCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 79.56% on average per year.
  • Looking at the last year, RDCM shows a quite strong growth in Revenue. The Revenue has grown by 17.20% in the last year.
  • The Revenue has been growing by 13.74% on average over the past years. This is quite good.
EPS 1Y (TTM)30.95%
EPS 3Y79.56%
EPS 5YN/A
EPS Q2Q%34.78%
Revenue 1Y (TTM)17.2%
Revenue growth 3Y15.79%
Revenue growth 5Y13.74%
Sales Q2Q%15.94%

3.2 Future

  • Based on estimates for the next years, RDCM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.86% on average per year.
  • RDCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.83% yearly.
EPS Next Y8.95%
EPS Next 2Y8.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.92%
Revenue Next 2Y9.83%
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 decreasing.
RDCM Yearly Revenue VS EstimatesRDCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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5

4. RDCM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.85, which indicates a very decent valuation of RDCM.
  • RDCM's Price/Earnings ratio is rather cheap when compared to the industry. RDCM is cheaper than 89.17% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, RDCM is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.04, the valuation of RDCM can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RDCM indicates a rather cheap valuation: RDCM is cheaper than 85.92% of the companies listed in the same industry.
  • RDCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.85
Fwd PE 9.04
RDCM Price Earnings VS Forward Price EarningsRDCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RDCM Per share dataRDCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • RDCM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y8.86%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RDCM Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

RDCM Fundamentals: All Metrics, Ratios and Statistics

RADCOM LTD

NASDAQ:RDCM (3/13/2026, 8:00:02 PM)

10.83

+0.12 (+1.12%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners63.43%
Inst Owner Change8.97%
Ins Owners28.32%
Ins Owner ChangeN/A
Market Cap173.60M
Revenue(TTM)71.49M
Net Income(TTM)11.99M
Analysts85
Price Target18.36 (69.53%)
Short Float %0.77%
Short Ratio1.41
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)18.94%
Min EPS beat(2)16.89%
Max EPS beat(2)20.98%
EPS beat(4)4
Avg EPS beat(4)17.34%
Min EPS beat(4)8.93%
Max EPS beat(4)22.55%
EPS beat(8)8
Avg EPS beat(8)17.34%
EPS beat(12)12
Avg EPS beat(12)57.09%
EPS beat(16)16
Avg EPS beat(16)85.71%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.14%
Revenue beat(4)3
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-0.11%
Max Revenue beat(4)1.55%
Revenue beat(8)7
Avg Revenue beat(8)1.93%
Revenue beat(12)10
Avg Revenue beat(12)1.45%
Revenue beat(16)13
Avg Revenue beat(16)1.43%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)10.2%
EPS NQ rev (3m)10.2%
EPS NY rev (1m)14.08%
EPS NY rev (3m)14.08%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.32%
Valuation
Industry RankSector Rank
PE 9.85
Fwd PE 9.04
P/S 2.43
P/FCF N/A
P/OCF N/A
P/B 1.52
P/tB 1.55
EV/EBITDA N/A
EPS(TTM)1.1
EY10.16%
EPS(NY)1.2
Fwd EY11.07%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS4.46
BVpS7.12
TBVpS6.98
PEG (NY)1.1
PEG (5Y)N/A
Graham Number13.27
Profitability
Industry RankSector Rank
ROA 8.27%
ROE 10.51%
ROCE 6.81%
ROIC 5.38%
ROICexc 54.56%
ROICexgc 67.25%
OM 11.61%
PM (TTM) 16.77%
GM 75.95%
FCFM N/A
ROA(3y)5.69%
ROA(5y)1.82%
ROE(3y)7.43%
ROE(5y)2.34%
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 3Y1.61%
GM growth 5Y1.26%
F-ScoreN/A
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.75
Quick Ratio 5.74
Altman-Z 4.47
F-ScoreN/A
WACC8.94%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.95%
EPS 3Y79.56%
EPS 5YN/A
EPS Q2Q%34.78%
EPS Next Y8.95%
EPS Next 2Y8.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.2%
Revenue growth 3Y15.79%
Revenue growth 5Y13.74%
Sales Q2Q%15.94%
Revenue Next Year9.92%
Revenue Next 2Y9.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y168.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

RADCOM LTD / RDCM Fundamental Analysis FAQ

What is the fundamental rating for RDCM stock?

ChartMill assigns a fundamental rating of 6 / 10 to RDCM.


What is the valuation status for RDCM stock?

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


Can you provide the profitability details for RADCOM LTD?

RADCOM LTD (RDCM) has a profitability rating of 5 / 10.


What is the earnings growth outlook for RADCOM LTD?

The Earnings per Share (EPS) of RADCOM LTD (RDCM) is expected to grow by 8.95% in the next year.