RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
USA - NASDAQ:RGP - US76122Q1058 - Common Stock
4.8 USD
+0.15 (+3.23%)
4.71 USD
-0.09 (-1.87%)
We assign a fundamental rating of 5 out of 10 to RGP. RGP was compared to 87 industry peers in the Professional Services industry. While RGP has a great health rating, there are worries on its profitability. RGP has a valuation in line with the averages, 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.
RGP had a positive operating cash flow in the past year.
Of the past 5 years RGP 4 years were profitable.
In the past 5 years RGP always reported a positive cash flow from operatings.
1.2 Ratios
RGP has a worse Return On Assets (-65.62%) than 90.70% of its industry peers.
RGP has a worse Return On Equity (-91.34%) than 84.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -65.62% | ||
| ROE | -91.34% | ||
| ROIC | N/A |
ROA(3y)-16.2%
ROA(5y)-6.44%
ROE(3y)-24.82%
ROE(5y)-9.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RGP's Operating Margin has declined in the last couple of years.
RGP has a Gross Margin of 38.33%. This is comparable to the rest of the industry: RGP outperforms 52.33% of its industry peers.
In the last couple of years the Gross Margin of RGP has remained more or less at the same level.
RGP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.33% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RGP has been reduced compared to 1 year ago.
RGP has more shares outstanding than it did 5 years ago.
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 2.95. 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 (2.95) which is comparable to the rest of the 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 | 2.95 |
ROIC/WACCN/A
WACC8.78%
2.3 Liquidity
RGP has a Current Ratio of 3.21. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP has a better Current ratio (3.21) than 88.37% of its industry peers.
RGP has a Quick Ratio of 3.21. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP's Quick ratio of 3.21 is amongst the best of the industry. RGP outperforms 89.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 3.21 |
3. Growth
3.1 Past
RGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.27%.
The earnings per share for RGP have been decreasing by -23.31% on average. This is quite bad
Looking at the last year, RGP shows a very negative growth in Revenue. The Revenue has decreased by -10.83% in the last year.
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)-60.27%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%57.24%
Revenue 1Y (TTM)-10.83%
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 quite strong growth in Earnings Per Share. The EPS will grow by 19.35% on average per year.
The Revenue is expected to grow by 0.48% on average over the next years.
EPS Next Y-61.15%
EPS Next 2Y19.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.65%
Revenue Next 2Y-3.63%
Revenue Next 3Y0.48%
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.
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
RGP is valuated correctly with a Price/Earnings ratio of 16.55.
Compared to the rest of the industry, the Price/Earnings ratio of RGP indicates a somewhat cheap valuation: RGP is cheaper than 68.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, RGP is valued a bit cheaper.
RGP is valuated correctly with a Price/Forward Earnings ratio of 12.96.
70.93% of the companies in the same industry are more expensive than RGP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RGP to the average of the S&P500 Index (34.59), we can say RGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
RGP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RGP is cheaper than 60.47% of the companies in the same industry.
68.60% of the companies in the same industry are more expensive than RGP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 15.46 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RGP's earnings are expected to grow with 19.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.02%, RGP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.28, RGP pays a better dividend. On top of this RGP pays more dividend than 94.19% of the companies listed in the same industry.
RGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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.
As RGP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.28%
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-8.63%
EPS Next 2Y19.35%
EPS Next 3YN/A
4.8
+0.15 (+3.23%)
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 Change21.93%
Market Cap160.27M
Revenue(TTM)534.63M
Net Income(TTM)-188.48M
Analysts75
Price Target7.01 (46.04%)
Short Float %1.85%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
Yearly Dividend0.56
Dividend Growth(5Y)0.28%
DP-8.63%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)906.45%
Min EPS beat(2)128.75%
Max EPS beat(2)1684.16%
EPS beat(4)4
Avg EPS beat(4)1771.4%
Min EPS beat(4)20.79%
Max EPS beat(4)5251.89%
EPS beat(8)7
Avg EPS beat(8)947.87%
EPS beat(12)11
Avg EPS beat(12)639.32%
EPS beat(16)15
Avg EPS beat(16)490.44%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)2.57%
Revenue beat(4)2
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.22%
Revenue beat(8)3
Avg Revenue beat(8)0.76%
Revenue beat(12)5
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)1.12%
PT rev (1m)-28.88%
PT rev (3m)-37.5%
EPS NQ rev (1m)155.57%
EPS NQ rev (3m)-82.45%
EPS NY rev (1m)-68.25%
EPS NY rev (3m)-81.13%
Revenue NQ rev (1m)-3.35%
Revenue NQ rev (3m)-10.14%
Revenue NY rev (1m)-9.36%
Revenue NY rev (3m)-11.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 12.96 | ||
| P/S | 0.3 | ||
| P/FCF | 18.18 | ||
| P/OCF | 14.09 | ||
| P/B | 0.78 | ||
| P/tB | 1 | ||
| EV/EBITDA | 15.46 |
EPS(TTM)0.29
EY6.04%
EPS(NY)0.37
Fwd EY7.72%
FCF(TTM)0.26
FCFY5.5%
OCF(TTM)0.34
OCFY7.1%
SpS16.01
BVpS6.18
TBVpS4.79
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -65.62% | ||
| ROE | -91.34% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.33% | ||
| FCFM | 1.65% |
ROA(3y)-16.2%
ROA(5y)-6.44%
ROE(3y)-24.82%
ROE(5y)-9.75%
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)8.49%
ROCE(5y)10.49%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score7
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 35.29% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 212.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 3.21 | ||
| Altman-Z | 2.95 |
F-Score7
WACC8.78%
ROIC/WACCN/A
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%57.24%
EPS Next Y-61.15%
EPS Next 2Y19.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.83%
Revenue growth 3Y-11.85%
Revenue growth 5Y-4.76%
Sales Q2Q%-12.2%
Revenue Next Year-11.65%
Revenue Next 2Y-3.63%
Revenue Next 3Y0.48%
Revenue Next 5YN/A
EBIT growth 1Y-107.06%
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-89.36%
FCF growth 3Y-29.64%
FCF growth 5Y-19.26%
OCF growth 1Y-86.57%
OCF growth 3Y-27.42%
OCF growth 5Y-17.52%
RESOURCES CONNECTION INC / RGP FAQ
What is the fundamental rating for RGP stock?
ChartMill assigns a fundamental rating of 5 / 10 to RGP.
Can you provide the valuation status for RESOURCES CONNECTION INC?
ChartMill assigns a valuation rating of 5 / 10 to RESOURCES CONNECTION INC (RGP). This can be considered as Fairly Valued.
What is the profitability of RGP stock?
RESOURCES CONNECTION INC (RGP) has a profitability rating of 2 / 10.
What is the valuation of RESOURCES CONNECTION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RESOURCES CONNECTION INC (RGP) is 16.55 and the Price/Book (PB) ratio is 0.78.
Can you provide the financial health for RGP stock?
The financial health rating of RESOURCES CONNECTION INC (RGP) is 8 / 10.