RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
NASDAQ:RGP - US76122Q1058 - Common Stock
4.99 USD
-0.07 (-1.38%)
4.99 USD
0 (0%)
Overall RGP gets a fundamental rating of 5 out of 10. We evaluated RGP against 82 industry peers in the Professional Services industry. While RGP has a great health rating, there are worries on its profitability. RGP is valued correctly, but it does not seem to be growing. 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.
In the past 5 years RGP always reported a positive cash flow from operatings.
1.2 Ratios
RGP's Return On Assets of -62.94% is on the low side compared to the rest of the industry. RGP is outperformed by 91.46% of its industry peers.
Looking at the Return On Equity, with a value of -92.61%, RGP is doing worse than 84.15% of the companies in the same industry.
With a Return On Invested Capital value of 1.04%, RGP is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for RGP is significantly below the industry average of 12.76%.
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
Looking at the Operating Margin, with a value of 0.61%, RGP is doing worse than 65.85% of the companies in the same industry.
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.
RGP's Gross Margin has been stable in the last couple of years.
| 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.
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
RGP has an Altman-Z score of 2.82. 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.
RGP has a Altman-Z score (2.82) which is in line with its industry peers.
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 | 2.82 |
ROIC/WACC0.12
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.70 indicates that RGP has no problem at all paying its short term obligations.
RGP's Current ratio of 2.70 is amongst the best of the industry. RGP outperforms 81.71% 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 81.71% 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 -72.04% in the last year.
The earnings per share for RGP have been decreasing by -23.31% on average. This is quite bad
RGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.88%.
RGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.76% yearly.
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
RGP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.53% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 19.19, RGP is valued on the expensive side.
60.98% of the companies in the same industry are more expensive than RGP, based on the Price/Earnings ratio.
RGP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 15.68 indicates a correct valuation of RGP.
Based on the Price/Forward Earnings ratio, RGP is valued a bit cheaper than 64.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, RGP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGP is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 81.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RGP's earnings are expected to grow with 62.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y62.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.52%, RGP is a good candidate for dividend investing.
RGP's Dividend Yield is rather good when compared to the industry average which is at 2.18. RGP pays more dividend than 97.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, RGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
5.2 History
The dividend of RGP has a limited annual growth rate of 0.68%.
RGP has paid a dividend for at least 10 years, which is a reliable track record.
As RGP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.68%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
RGP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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
4.99
-0.07 (-1.38%)
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 Cap166.37M
Analysts48
Price Target11.22 (124.85%)
Short Float %1.79%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Yearly Dividend0.57
Dividend Growth(5Y)0.68%
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)-8.33%
PT rev (3m)22.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-325%
EPS NY rev (1m)-40.57%
EPS NY rev (3m)-40.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.3%
Revenue NY rev (1m)-2.29%
Revenue NY rev (3m)-6.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 15.68 | ||
| P/S | 0.3 | ||
| P/FCF | 10.28 | ||
| P/OCF | 8.8 | ||
| P/B | 0.8 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.26
EY5.21%
EPS(NY)0.32
Fwd EY6.38%
FCF(TTM)0.49
FCFY9.73%
OCF(TTM)0.57
OCFY11.36%
SpS16.54
BVpS6.21
TBVpS4.78
PEG (NY)0.86
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 | 2.82 |
F-Score5
WACC8.72%
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 Y22.37%
EPS Next 2Y62.53%
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-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%