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RADCOM LTD (RDCM) Stock Fundamental Analysis

NASDAQ:RDCM - Nasdaq - IL0010826688 - Common Stock - Currency: USD

11.89  -0.86 (-6.75%)

After market: 11.89 0 (0%)

Fundamental Rating

6

Overall RDCM gets a fundamental rating of 6 out of 10. We evaluated RDCM against 284 industry peers in the Software industry. RDCM has an excellent financial health rating, but there are some minor concerns on its profitability. RDCM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

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.
Of the past 5 years RDCM 4 years had a positive operating cash flow.
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

RDCM has a better Return On Assets (6.41%) than 78.17% of its industry peers.
With a decent Return On Equity value of 8.65%, RDCM is doing good in the industry, outperforming 76.06% of the companies in the same industry.
RDCM has a Return On Invested Capital of 3.59%. This is in the better half of the industry: RDCM outperforms 72.89% of its industry peers.
Industry RankSector Rank
ROA 6.41%
ROE 8.65%
ROIC 3.59%
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's Profit Margin of 13.52% is amongst the best of the industry. RDCM outperforms 80.63% of its industry peers.
RDCM has a better Operating Margin (7.59%) than 74.30% of its industry peers.
RDCM's Gross Margin of 74.88% is fine compared to the rest of the industry. RDCM outperforms 66.90% 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 7.59%
PM (TTM) 13.52%
GM 74.88%
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

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8

2. Health

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.
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

RDCM has an Altman-Z score of 4.06. This indicates that RDCM is financially healthy and has little risk of bankruptcy at the moment.
RDCM has a Altman-Z score of 4.06. This is in the better half of the industry: RDCM outperforms 65.49% 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 4.06
ROIC/WACC0.38
WACC9.51%
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

A Current Ratio of 4.36 indicates that RDCM has no problem at all paying its short term obligations.
RDCM has a better Current ratio (4.36) than 84.51% of its industry peers.
A Quick Ratio of 4.26 indicates that RDCM has no problem at all paying its short term obligations.
The Quick ratio of RDCM (4.26) is better than 84.15% of its industry peers.
Industry RankSector Rank
Current Ratio 4.36
Quick Ratio 4.26
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

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.17% over the past year.
RDCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.46%.
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)28.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.89%
Revenue 1Y (TTM)19.46%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%17.48%

3.2 Future

The Earnings Per Share is expected to grow by 5.75% on average over the next years.
Based on estimates for the next years, RDCM will show a quite strong growth in Revenue. The Revenue will grow by 14.40% on average per year.
EPS Next Y13.54%
EPS Next 2Y5.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.41%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 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 0 0.2 -0.2 0.4 -0.4 0.6 0.8

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.07, the valuation of RDCM can be described as correct.
Based on the Price/Earnings ratio, RDCM is valued cheaply inside the industry as 89.44% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. RDCM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.66 indicates a correct valuation of RDCM.
Based on the Price/Forward Earnings ratio, RDCM is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
RDCM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.07
Fwd PE 12.66
RDCM Price Earnings VS Forward Price EarningsRDCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

71.83% of the companies in the same industry are more expensive than RDCM, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 34.4
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)0.97
PEG (5Y)N/A
EPS Next 2Y5.75%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for RDCM!.
Industry RankSector Rank
Dividend Yield N/A

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RADCOM LTD

NASDAQ:RDCM (6/20/2025, 8:00:02 PM)

After market: 11.89 0 (0%)

11.89

-0.86 (-6.75%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners53.98%
Inst Owner Change1.71%
Ins Owners14.85%
Ins Owner ChangeN/A
Market Cap190.60M
Analysts85
Price Target18.36 (54.42%)
Short Float %0.72%
Short Ratio2.27
Dividend
Industry RankSector 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)2
Avg EPS beat(2)18.36%
Min EPS beat(2)14.17%
Max EPS beat(2)22.55%
EPS beat(4)4
Avg EPS beat(4)21.4%
Min EPS beat(4)14.17%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)47.72%
EPS beat(12)12
Avg EPS beat(12)93.87%
EPS beat(16)16
Avg EPS beat(16)94.83%
Revenue beat(2)2
Avg Revenue beat(2)1.85%
Min Revenue beat(2)0.22%
Max Revenue beat(2)3.47%
Revenue beat(4)4
Avg Revenue beat(4)2.55%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.72%
Revenue beat(8)7
Avg Revenue beat(8)1.93%
Revenue beat(12)10
Avg Revenue beat(12)1.62%
Revenue beat(16)12
Avg Revenue beat(16)1.35%
PT rev (1m)5.88%
PT rev (3m)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)3.66%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)2.74%
Valuation
Industry RankSector Rank
PE 13.07
Fwd PE 12.66
P/S 2.98
P/FCF N/A
P/OCF N/A
P/B 1.91
P/tB 1.96
EV/EBITDA 34.4
EPS(TTM)0.91
EY7.65%
EPS(NY)0.94
Fwd EY7.9%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.99
BVpS6.24
TBVpS6.08
PEG (NY)0.97
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.41%
ROE 8.65%
ROCE 4.54%
ROIC 3.59%
ROICexc 3.59%
ROICexgc 3.68%
OM 7.59%
PM (TTM) 13.52%
GM 74.88%
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.47
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 4.36
Quick Ratio 4.26
Altman-Z 4.06
F-ScoreN/A
WACC9.51%
ROIC/WACC0.38
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)28.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.89%
EPS Next Y13.54%
EPS Next 2Y5.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.46%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%17.48%
Revenue Next Year17.41%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y933.62%
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%