RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
NASDAQ:RGP - Nasdaq - US76122Q1058 - Common Stock - Currency: USD
RGP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. RGP has a great financial health rating, but its profitability evaluates not so good. 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
RGP had positive earnings in the past year.
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
With a Return On Assets value of -62.94%, RGP is not doing good in the industry: 93.83% of the companies in the same industry are doing better.
RGP has a worse Return On Equity (-92.61%) than 86.42% of its industry peers.
The Return On Invested Capital of RGP (1.04%) is worse than 67.90% of its industry peers.
RGP had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 12.50%.
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 worse Operating Margin (0.61%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of RGP has declined.
RGP's Gross Margin of 37.62% is in line compared to the rest of the industry. RGP outperforms 53.09% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RGP is destroying value.
The number of shares outstanding for RGP has been reduced compared to 1 year ago.
Compared to 5 years ago, RGP has more shares outstanding
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.
2.2 Solvency
RGP has an Altman-Z score of 2.74. This is not the best score and indicates that RGP is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.74, RGP perfoms like the industry average, outperforming 45.68% of the companies in the same industry.
RGP 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 | 0 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.12
WACC8.97%
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 has a Current ratio of 2.70. This is amongst the best in the industry. RGP outperforms 82.72% of its industry peers.
A Quick Ratio of 2.70 indicates that RGP has no problem at all paying its short term obligations.
RGP has a better Quick ratio (2.70) than 83.95% of its industry peers.
| 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 -72.04% in the last year.
Measured over the past years, RGP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.31% on average per year.
RGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.88%.
Measured over the past years, RGP shows a decrease in Revenue. The Revenue has been decreasing by -4.76% on average per year.
EPS 1Y (TTM)-72.04%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-12.88%
Revenue growth 3Y-11.85%
Revenue growth 5Y-4.76%
Sales Q2Q%-5.98%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
Based on estimates for the next years, RGP will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y105.88%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.24%
Revenue Next 2Y9.47%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.35, RGP is valued on the expensive side.
RGP's Price/Earnings ratio is a bit cheaper when compared to the industry. RGP is cheaper than 61.73% of the companies in the same industry.
RGP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.91 indicates a reasonable valuation of RGP.
Based on the Price/Forward Earnings ratio, RGP is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.29. RGP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
90.12% of the companies in the same industry are more expensive than RGP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RGP is valued cheaper than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 6.14 |
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.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGP has a Yearly Dividend Yield of 5.93%, which is a nice return.
RGP's Dividend Yield is rather good when compared to the industry average which is at 2.27. RGP pays more dividend than 97.53% of the companies in the same industry.
RGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
The dividend of RGP has a limited annual growth rate of 0.28%.
RGP has been paying a dividend for at least 10 years, so it has 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.
RGP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-9.72%
EPS Next 2YN/A
EPS Next 3YN/A
NASDAQ:RGP (8/18/2025, 2:55:17 PM)
4.77
+0.14 (+3.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner ChangeN/A
Ins Owners2.34%
Ins Owner Change0.1%
Market Cap159.03M
Analysts48
Price Target11.22 (135.22%)
Short Float %1.86%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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)22.22%
PT rev (3m)-8.33%
EPS NQ rev (1m)-325%
EPS NQ rev (3m)-325%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-13.3%
Revenue NQ rev (3m)-13.3%
Revenue NY rev (1m)-3.94%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.29 | ||
| P/FCF | 9.82 | ||
| P/OCF | 8.41 | ||
| P/B | 0.77 | ||
| P/tB | 1 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)0.26
EY5.45%
EPS(NY)0.54
Fwd EY11.22%
FCF(TTM)0.49
FCFY10.18%
OCF(TTM)0.57
OCFY11.88%
SpS16.54
BVpS6.21
TBVpS4.78
PEG (NY)0.17
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 | 2.49% | ||
| 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 | 9.52 | ||
| Cash Conversion | 169.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 2.74 |
F-Score5
WACC8.97%
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)-72.04%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%-42.86%
EPS Next Y105.88%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.88%
Revenue growth 3Y-11.85%
Revenue growth 5Y-4.76%
Sales Q2Q%-5.98%
Revenue Next Year-0.24%
Revenue Next 2Y9.47%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y-88.17%
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%