RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
USA - NASDAQ:RGP - US76122Q1058 - Common Stock
4.75 USD
-0.2 (-4.04%)
4.73 USD
-0.02 (-0.42%)
Overall RGP gets a fundamental rating of 5 out of 10. We evaluated RGP against 82 industry peers in the Professional Services industry. No worries on liquidiy or solvency for RGP as it has an excellent financial health rating, but there are worries on the profitability. RGP is cheap, but on the other hand it scores bad on growth. Finally RGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RGP was profitable.
In the past year RGP had a positive cash flow from operations.
RGP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RGP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -62.94%, RGP is doing worse than 91.46% of the companies in the same industry.
RGP's Return On Equity of -92.61% is on the low side compared to the rest of the industry. RGP is outperformed by 84.15% of its industry peers.
With a Return On Invested Capital value of 1.04%, RGP is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
RGP had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 13.20%.
The last Return On Invested Capital (1.04%) for RGP is well below the 3 year average (5.98%), which needs to be investigated, but indicates that RGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -62.94% | ||
| ROE | -92.61% | ||
| ROIC | 1.04% |
ROA(3y)-16.2%
ROA(5y)-6.44%
ROE(3y)-24.82%
ROE(5y)-9.75%
ROIC(3y)5.98%
ROIC(5y)7.4%
1.3 Margins
RGP has a Operating Margin of 0.61%. This is in the lower half of the industry: RGP underperforms 67.07% of its industry peers.
RGP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 37.62%, RGP perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
In the last couple of years the Gross Margin of RGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 37.62% |
OM growth 3Y-61.22%
OM growth 5Y-35.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
RGP 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, RGP has less shares outstanding
The number of shares outstanding for RGP has been increased compared to 5 years ago.
RGP 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 2.81 indicates that RGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.81, RGP perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
There is no outstanding debt for RGP. 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 | 0 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.12
WACC8.77%
2.3 Liquidity
RGP has a Current Ratio of 2.70. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP's Current ratio of 2.70 is amongst the best of the industry. RGP outperforms 82.93% of its industry peers.
RGP has a Quick Ratio of 2.70. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.70, RGP belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The earnings per share for RGP have decreased strongly by -60.27% in the last year.
RGP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.31% yearly.
The Revenue for RGP has decreased by -12.87% in the past year. This is quite bad
RGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.76% yearly.
EPS 1Y (TTM)-60.27%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%N/A
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y-11.85%
Revenue growth 5Y-4.76%
Sales Q2Q%-12.2%
3.2 Future
Based on estimates for the next years, RGP will show a very strong growth in Earnings Per Share. The EPS will grow by 62.53% on average per year.
RGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y22.37%
EPS Next 2Y62.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.53%
Revenue Next 2Y4.65%
Revenue Next 3Y3.85%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.38, the valuation of RGP can be described as correct.
RGP's Price/Earnings ratio is a bit cheaper when compared to the industry. RGP is cheaper than 65.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of RGP to the average of the S&P500 Index (27.70), we can say RGP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 6.92, the valuation of RGP can be described as very cheap.
RGP's Price/Forward Earnings ratio is rather cheap when compared to the industry. RGP is cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.15, RGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
RGP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RGP is cheaper than 86.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RGP is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
RGP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RGP's earnings are expected to grow with 62.53% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y62.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGP has a Yearly Dividend Yield of 5.77%, which is a nice return.
Compared to an average industry Dividend Yield of 3.62, RGP pays a better dividend. On top of this RGP pays more dividend than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
5.2 History
The dividend of RGP has a limited annual growth rate of 0.28%.
RGP has paid a dividend for at least 10 years, which is a reliable track record.
RGP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.28%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
The earnings of RGP are negative and hence is the payout ratio. RGP will probably not be able to sustain this dividend level.
The dividend of RGP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-9.72%
EPS Next 2Y62.53%
EPS Next 3YN/A
4.75
-0.2 (-4.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners87.99%
Inst Owner ChangeN/A
Ins Owners2.34%
Ins Owner Change0.05%
Market Cap158.51M
Analysts75
Price Target9.86 (107.58%)
Short Float %1.89%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
Yearly Dividend0.56
Dividend Growth(5Y)0.28%
DP-9.72%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)852.48%
Min EPS beat(2)20.79%
Max EPS beat(2)1684.16%
EPS beat(4)3
Avg EPS beat(4)1714.21%
Min EPS beat(4)-100%
Max EPS beat(4)5251.89%
EPS beat(8)7
Avg EPS beat(8)932.3%
EPS beat(12)11
Avg EPS beat(12)630.46%
EPS beat(16)15
Avg EPS beat(16)486.04%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)2.57%
Revenue beat(4)2
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)5.22%
Revenue beat(8)3
Avg Revenue beat(8)0.73%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)10
Avg Revenue beat(16)1.37%
PT rev (1m)-12.12%
PT rev (3m)7.41%
EPS NQ rev (1m)-21.56%
EPS NQ rev (3m)-416.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-40.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.29 | ||
| P/FCF | 9.79 | ||
| P/OCF | 8.39 | ||
| P/B | 0.77 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.29
EY6.11%
EPS(NY)0.69
Fwd EY14.46%
FCF(TTM)0.49
FCFY10.21%
OCF(TTM)0.57
OCFY11.92%
SpS16.52
BVpS6.21
TBVpS4.78
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -62.94% | ||
| ROE | -92.61% | ||
| ROCE | 1.47% | ||
| ROIC | 1.04% | ||
| ROICexc | 1.66% | ||
| ROICexgc | 2.5% | ||
| OM | 0.61% | ||
| PM (TTM) | N/A | ||
| GM | 37.62% | ||
| FCFM | 2.94% |
ROA(3y)-16.2%
ROA(5y)-6.44%
ROE(3y)-24.82%
ROE(5y)-9.75%
ROIC(3y)5.98%
ROIC(5y)7.4%
ROICexc(3y)8.21%
ROICexc(5y)9.76%
ROICexgc(3y)25.2%
ROICexgc(5y)29.13%
ROCE(3y)8.49%
ROCE(5y)10.49%
ROICexcg growth 3Y-62.36%
ROICexcg growth 5Y-37.1%
ROICexc growth 3Y-53.82%
ROICexc growth 5Y-26.63%
OM growth 3Y-61.22%
OM growth 5Y-35.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-0.8%
F-Score5
Asset Turnover1.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 34.99% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 9.54 | ||
| Cash Conversion | 169.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 2.81 |
F-Score5
WACC8.77%
ROIC/WACC0.12
Cap/Depr(3y)24.01%
Cap/Depr(5y)29.82%
Cap/Sales(3y)0.31%
Cap/Sales(5y)0.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60.27%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%N/A
EPS Next Y22.37%
EPS Next 2Y62.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y-11.85%
Revenue growth 5Y-4.76%
Sales Q2Q%-12.2%
Revenue Next Year-2.53%
Revenue Next 2Y4.65%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y-88.03%
EBIT growth 3Y-65.82%
EBIT growth 5Y-38.24%
EBIT Next Year114.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-22.08%
FCF growth 3Y-29.64%
FCF growth 5Y-19.26%
OCF growth 1Y-13.78%
OCF growth 3Y-27.42%
OCF growth 5Y-17.52%