RADCOM LTD (RDCM) Fundamental Analysis & Valuation

NASDAQ:RDCM • IL0010826688

Current stock price

15.77 USD
+0.39 (+2.54%)
At close:
16.01 USD
+0.24 (+1.52%)
After Hours:

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

6

1. RDCM Profitability Analysis

1.1 Basic Checks

  • RDCM had positive earnings in the past year.
  • In the past year RDCM had a positive cash flow from operations.
  • In multiple years RDCM reported negative net income over the last 5 years.
  • In the past 5 years RDCM always reported a positive cash flow from operatings.
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

  • With an excellent Return On Assets value of 8.27%, RDCM belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
  • With a decent Return On Equity value of 10.51%, RDCM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • RDCM has a Return On Invested Capital of 5.38%. This is in the better half of the industry: RDCM outperforms 73.53% of its industry peers.
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 82.72% of its industry peers.
  • With a decent Operating Margin value of 11.61%, RDCM is doing good in the industry, outperforming 77.57% of the companies in the same industry.
  • Looking at the Gross Margin, with a value of 75.95%, RDCM is in the better half of the industry, outperforming 69.85% of the companies in the same industry.
  • RDCM's Gross Margin has been stable in the last couple of years.
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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8

2. RDCM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDCM is destroying value.
  • The number of shares outstanding for RDCM has been increased compared to 1 year ago.
  • RDCM has more shares outstanding than it did 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 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

  • An Altman-Z score of 6.21 indicates that RDCM is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of RDCM (6.21) is better than 79.78% 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 0
Altman-Z 6.21
ROIC/WACC0.63
WACC8.6%
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

  • A Current Ratio of 5.75 indicates that RDCM has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 5.75, RDCM belongs to the best of the industry, outperforming 88.60% 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.
  • The Quick ratio of RDCM (5.74) is better than 88.60% 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.
  • RDCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 79.56% yearly.
  • Looking at the last year, RDCM shows a quite strong growth in Revenue. The Revenue has grown by 17.20% in the last year.
  • RDCM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.74% yearly.
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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Find the best growth stocksShow best growing peers

6

4. RDCM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.34 indicates a correct valuation of RDCM.
  • RDCM's Price/Earnings ratio is rather cheap when compared to the industry. RDCM is cheaper than 80.15% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, RDCM is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 13.16, which indicates a correct valuation of RDCM.
  • Based on the Price/Forward Earnings ratio, RDCM is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
  • RDCM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.29.
Industry RankSector Rank
PE 14.34
Fwd PE 13.16
RDCM Price Earnings VS Forward Price EarningsRDCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 90.44% of the companies in the same industry are more expensive than RDCM, based on the Enterprise Value to EBITDA ratio.
  • 75.37% of the companies in the same industry are more expensive than RDCM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.51
EV/EBITDA 8.21
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.
  • RDCM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.6
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 (4/24/2026, 8:05:14 PM)

After market: 16.01 +0.24 (+1.52%)

15.77

+0.39 (+2.54%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-13
Inst Owners60.91%
Inst Owner Change-0.08%
Ins Owners13.72%
Ins Owner Change1.08%
Market Cap263.20M
Revenue(TTM)71.49M
Net Income(TTM)11.99M
Analysts85
Price Target18.36 (16.42%)
Short Float %0.77%
Short Ratio1.64
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)0%
EPS NQ rev (3m)10.2%
EPS NY rev (1m)0%
EPS NY rev (3m)14.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.32%
Valuation
Industry RankSector Rank
PE 14.34
Fwd PE 13.16
P/S 3.68
P/FCF 18.51
P/OCF 18.02
P/B 2.31
P/tB 2.35
EV/EBITDA 8.21
EPS(TTM)1.1
EY6.98%
EPS(NY)1.2
Fwd EY7.6%
FCF(TTM)0.85
FCFY5.4%
OCF(TTM)0.88
OCFY5.55%
SpS4.28
BVpS6.84
TBVpS6.7
PEG (NY)1.6
PEG (5Y)N/A
Graham Number13.008 (-17.51%)
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 19.89%
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-Score8
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 55.33%
Cap/Sales 0.54%
Interest Coverage 250
Cash Conversion 162.35%
Profit Quality 118.61%
Current Ratio 5.75
Quick Ratio 5.74
Altman-Z 6.21
F-Score8
WACC8.6%
ROIC/WACC0.63
Cap/Depr(3y)51.86%
Cap/Depr(5y)53.66%
Cap/Sales(3y)0.56%
Cap/Sales(5y)0.62%
Profit Quality(3y)132.14%
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 1Y29.76%
FCF growth 3Y34.31%
FCF growth 5YN/A
OCF growth 1Y28.27%
OCF growth 3Y34.38%
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 6 / 10 to RADCOM LTD (RDCM). This can be considered as Fairly Valued.


How profitable is RADCOM LTD (RDCM) stock?

RADCOM LTD (RDCM) has a profitability rating of 6 / 10.


What is the valuation of RADCOM LTD based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RADCOM LTD (RDCM) is 14.34 and the Price/Book (PB) ratio is 2.31.


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.