RADCOM LTD (RDCM) Stock Fundamental Analysis
NASDAQ:RDCM - IL0010826688 - Common Stock
13.26 USD
-0.32 (-2.36%)
We assign a fundamental rating of 5 out of 10 to RDCM. RDCM was compared to 282 industry peers in the Software industry. While RDCM has a great health rating, its profitability is only average at the moment. RDCM has a correct valuation and a medium growth rate.
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.
1.2 Ratios
The Return On Assets of RDCM (6.41%) is better than 76.24% of its industry peers.
RDCM's Return On Equity of 8.65% is fine compared to the rest of the industry. RDCM outperforms 74.47% of its industry peers.
RDCM has a Return On Invested Capital of 3.59%. This is in the better half of the industry: RDCM outperforms 71.28% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of RDCM (13.52%) is better than 76.95% of its industry peers.
RDCM has a Operating Margin of 7.59%. This is in the better half of the industry: RDCM outperforms 71.99% of its industry peers.
The Gross Margin of RDCM (74.88%) is better than 66.31% 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 Rank | Sector 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%
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.
2.2 Solvency
An Altman-Z score of 4.53 indicates that RDCM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.53, RDCM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.53 |
ROIC/WACC0.38
WACC9.39%
2.3 Liquidity
A Current Ratio of 4.36 indicates that RDCM has no problem at all paying its short term obligations.
The Current ratio of RDCM (4.36) is better than 85.11% of its industry peers.
A Quick Ratio of 4.26 indicates that RDCM has no problem at all paying its short term obligations.
RDCM has a better Quick ratio (4.26) than 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.36 | ||
| Quick Ratio | 4.26 |
3. Growth
3.1 Past
RDCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.08%, which is quite impressive.
Looking at the last year, RDCM shows a quite strong growth in Revenue. The Revenue has grown by 18.22% in the last year.
The Revenue has been growing by 13.07% on average over the past years. This is quite good.
EPS 1Y (TTM)23.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)18.22%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%19.3%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
Based on estimates for the next years, RDCM will show a quite strong growth in Revenue. The Revenue will grow by 14.42% on average per year.
EPS Next Y16.57%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.4%
Revenue Next 2Y14.42%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.81, the valuation of RDCM can be described as correct.
RDCM's Price/Earnings ratio is rather cheap when compared to the industry. RDCM is cheaper than 85.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of RDCM to the average of the S&P500 Index (27.03), we can say RDCM is valued slightly cheaper.
RDCM is valuated correctly with a Price/Forward Earnings ratio of 13.27.
Based on the Price/Forward Earnings ratio, RDCM is valued cheaper than 87.23% of the companies in the same industry.
RDCM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
RDCM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDCM is cheaper than 67.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 39.29 |
4.3 Compensation for Growth
RDCM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y9.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RDCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RDCM (8/25/2025, 8:00:01 PM)
13.26
-0.32 (-2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners53.91%
Inst Owner Change1.29%
Ins Owners14.85%
Ins Owner ChangeN/A
Market Cap212.56M
Analysts85
Price Target18.36 (38.46%)
Short Float %0.79%
Short Ratio1.49
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)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)0%
PT rev (3m)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.67%
EPS NY rev (3m)6.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13.27 | ||
| P/S | 3.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.13 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 39.29 |
EPS(TTM)0.96
EY7.24%
EPS(NY)1
Fwd EY7.54%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.99
BVpS6.24
TBVpS6.08
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.53 |
F-ScoreN/A
WACC9.39%
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)23.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y16.57%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.22%
Revenue growth 3Y14.84%
Revenue growth 5Y13.07%
Sales Q2Q%19.3%
Revenue Next Year17.4%
Revenue Next 2Y14.42%
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%