RADCOM LTD (RDCM) Stock Fundamental Analysis
NASDAQ:RDCM - Nasdaq - IL0010826688 - Common Stock - Currency: USD
RDCM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 283 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.
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
RDCM's Return On Assets of 6.41% is fine compared to the rest of the industry. RDCM outperforms 78.09% of its industry peers.
Looking at the Return On Equity, with a value of 8.65%, RDCM is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.59%, RDCM is doing good in the industry, outperforming 73.85% of the companies in the same industry.
| 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
RDCM has a better Profit Margin (13.52%) than 80.57% of its industry peers.
Looking at the Operating Margin, with a value of 7.59%, RDCM is in the better half of the industry, outperforming 74.91% of the companies in the same industry.
The Gross Margin of RDCM (74.88%) is better than 66.78% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDCM is destroying value.
RDCM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RDCM has more shares outstanding
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.
2.2 Solvency
RDCM has an Altman-Z score of 4.48. This indicates that RDCM is financially healthy and has little risk of bankruptcy at the moment.
RDCM has a Altman-Z score of 4.48. This is in the better half of the industry: RDCM outperforms 68.20% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.48 |
ROIC/WACC0.38
WACC9.52%
2.3 Liquidity
RDCM has a Current Ratio of 4.36. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.36, RDCM belongs to the best of the industry, outperforming 84.45% of the companies in the same industry.
RDCM has a Quick Ratio of 4.26. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.26, RDCM belongs to the best of the industry, outperforming 84.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.36 | ||
| Quick Ratio | 4.26 |
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%.
The Revenue has been growing by 13.07% on average over the past years. This is quite good.
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
RDCM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.75% yearly.
The Revenue is expected to grow by 13.68% on average over the next years. This is quite good.
EPS Next Y9.53%
EPS Next 2Y5.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.91%
Revenue Next 2Y13.68%
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
A Price/Earnings ratio of 14.74 indicates a correct valuation of RDCM.
Based on the Price/Earnings ratio, RDCM is valued cheaper than 87.28% of the companies in the same industry.
When comparing the Price/Earnings ratio of RDCM to the average of the S&P500 Index (26.25), we can say RDCM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.27, RDCM is valued correctly.
RDCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RDCM is cheaper than 83.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, RDCM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
RDCM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDCM is cheaper than 70.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 38.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y5.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RDCM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RDCM (5/30/2025, 8:00:01 PM)
13.41
+0.05 (+0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners53.5%
Inst Owner Change1.71%
Ins Owners14.99%
Ins Owner ChangeN/A
Market Cap214.96M
Analysts85
Price Target17.34 (29.31%)
Short Float %0.47%
Short Ratio1.73
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)6.25%
EPS NQ rev (1m)3.93%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)1.62%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 14.27 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.15 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 38.8 |
EPS(TTM)0.91
EY6.79%
EPS(NY)0.94
Fwd EY7.01%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.99
BVpS6.24
TBVpS6.08
PEG (NY)1.55
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 | 4.48 |
F-ScoreN/A
WACC9.52%
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 Y9.53%
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 Year15.91%
Revenue Next 2Y13.68%
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%