RDCM Fundamental Analysis - RADCOM LTD

Fundamental Rating

Taking everything into account, RDCM scores 5 out of 10 in our fundamental rating. RDCM was compared to 279 industry peers in the Software industry. While RDCM has a great health rating, its profitability is only average at the moment. RDCM is not valued too expensively and it also shows a decent growth rate.

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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

Looking at the Return On Assets, with a value of 6.90%, RDCM is in the better half of the industry, outperforming 76.70% of the companies in the same industry.

Looking at the Return On Equity, with a value of 9.02%, RDCM is in the better half of the industry, outperforming 74.55% of the companies in the same industry.

Looking at the Return On Invested Capital, with a value of 4.07%, RDCM is in the better half of the industry, outperforming 72.04% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	6.9%
ROE	9.02%
ROIC	4.07%

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's Profit Margin of 14.00% is fine compared to the rest of the industry. RDCM outperforms 77.78% of its industry peers.

Looking at the Operating Margin, with a value of 8.54%, RDCM is in the better half of the industry, outperforming 72.40% of the companies in the same industry.

The Gross Margin of RDCM (75.13%) is better than 67.74% of its industry peers.

RDCM's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	8.54%
PM (TTM)	14%
GM	75.13%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.98%

GM growth 5Y1.07%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RDCM is destroying value.

Compared to 1 year ago, RDCM has more shares outstanding

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.

2.2 Solvency

An Altman-Z score of 5.28 indicates that RDCM is not in any danger for bankruptcy at the moment.

RDCM has a better Altman-Z score (5.28) than 68.46% 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 Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	5.28

ROIC/WACC0.43

WACC9.42%

2.3 Liquidity

RDCM has a Current Ratio of 4.92. This indicates that RDCM is financially healthy and has no problem in meeting its short term obligations.

RDCM has a better Current ratio (4.92) than 88.89% of its industry peers.

A Quick Ratio of 4.87 indicates that RDCM has no problem at all paying its short term obligations.

Looking at the Quick ratio, with a value of 4.87, RDCM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	4.92
Quick Ratio	4.87

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.08% over the past year.

The Revenue has grown by 19.21% in the past year. This is quite good.

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)19.21%

Revenue growth 3Y14.84%

Revenue growth 5Y13.07%

Sales Q2Q%19.3%

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 9.09% on average per year.

RDCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.42% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.18, RDCM is valued correctly.

Compared to the rest of the industry, the Price/Earnings ratio of RDCM indicates a rather cheap valuation: RDCM is cheaper than 84.59% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.41, RDCM is valued a bit cheaper.

RDCM is valuated correctly with a Price/Forward Earnings ratio of 14.58.

Compared to the rest of the industry, the Price/Forward Earnings ratio of RDCM indicates a rather cheap valuation: RDCM is cheaper than 84.59% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, RDCM is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.18
Fwd PE	14.58

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RDCM is valued a bit cheaper than 70.61% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	36.49

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)0.92

PEG (5Y)N/A

EPS Next 2Y9.09%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for RDCM!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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RADCOM LTD

NASDAQ:RDCM (9/22/2025, 9:01:25 PM)

After market: 14.57 0 (0%)

14.57

+0.03 (+0.21%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)08-13 2025-08-13/bmo

Earnings (Next)11-11 2025-11-11/bmo

Inst Owners53.91%

Inst Owner Change1.29%

Ins Owners14.85%

Ins Owner ChangeN/A

Market Cap233.56M

Analysts85

Price Target18.36 (26.01%)

Short Float %0.63%

Short Ratio1.32

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)15.74%

Min EPS beat(2)8.93%

Max EPS beat(2)22.55%

EPS beat(4)4

Avg EPS beat(4)15.62%

Min EPS beat(4)8.93%

Max EPS beat(4)22.55%

EPS beat(8)8

Avg EPS beat(8)27.8%

EPS beat(12)12

Avg EPS beat(12)86.29%

EPS beat(16)16

Avg EPS beat(16)91.86%

Revenue beat(2)2

Avg Revenue beat(2)0.89%

Min Revenue beat(2)0.22%

Max Revenue beat(2)1.55%

Revenue beat(4)4

Avg Revenue beat(4)2.24%

Min Revenue beat(4)0.22%

Max Revenue beat(4)3.72%

Revenue beat(8)8

Avg Revenue beat(8)2.31%

Revenue beat(12)10

Avg Revenue beat(12)1.65%

Revenue beat(16)13

Avg Revenue beat(16)1.53%

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)0%

EPS NQ rev (3m)4.44%

EPS NY rev (1m)0%

EPS NY rev (3m)2.67%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-0.34%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.01%

Valuation

		Industry Rank	Sector Rank
PE	15.18
Fwd PE	14.58
P/S	3.49
P/FCF	N/A
P/OCF	N/A
P/B	2.25
P/tB	2.3
EV/EBITDA	36.49

EPS(TTM)0.96

EY6.59%

EPS(NY)1

Fwd EY6.86%

FCF(TTM)N/A

FCFYN/A

OCF(TTM)N/A

OCFYN/A

SpS4.18

BVpS6.49

TBVpS6.34

PEG (NY)0.92

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	6.9%
ROE	9.02%
ROCE	5.15%
ROIC	4.07%
ROICexc	4.07%
ROICexgc	4.16%
OM	8.54%
PM (TTM)	14%
GM	75.13%
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 Turnover0.49

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	4.92
Quick Ratio	4.87
Altman-Z	5.28

F-ScoreN/A

WACC9.42%

ROIC/WACC0.43

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)19.21%

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 1Y665.73%

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%

RADCOM LTD (RDCM) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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