RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
NASDAQ:RGP - Nasdaq - US76122Q1058 - Common Stock - Currency: USD
Overall RGP gets a fundamental rating of 5 out of 10. We evaluated RGP against 81 industry peers in the Professional Services industry. RGP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RGP has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years RGP has always been profitable.
Each year in the past 5 years RGP had a positive operating cash flow.
1.2 Ratios
RGP's Return On Assets of -28.75% is on the low side compared to the rest of the industry. RGP is outperformed by 88.89% of its industry peers.
The Return On Equity of RGP (-38.87%) is worse than 79.01% of its industry peers.
RGP has a Return On Invested Capital (2.43%) which is comparable to the rest of the industry.
RGP had an Average Return On Invested Capital over the past 3 years of 10.28%. This is below the industry average of 12.53%.
The last Return On Invested Capital (2.43%) for RGP is well below the 3 year average (10.28%), which needs to be investigated, but indicates that RGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.75% | ||
| ROE | -38.87% | ||
| ROIC | 2.43% |
ROA(3y)8.63%
ROA(5y)7.22%
ROE(3y)12.06%
ROE(5y)10.63%
ROIC(3y)10.28%
ROIC(5y)8.66%
1.3 Margins
RGP's Profit Margin has declined in the last couple of years.
RGP's Operating Margin of 1.80% is in line compared to the rest of the industry. RGP outperforms 40.74% of its industry peers.
In the last couple of years the Operating Margin of RGP has declined.
RGP has a Gross Margin of 37.67%. This is comparable to the rest of the industry: RGP outperforms 54.32% 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 | 1.8% | ||
| PM (TTM) | N/A | ||
| GM | 37.67% |
OM growth 3Y-7.52%
OM growth 5Y-8.17%
PM growth 3Y-6.01%
PM growth 5Y-5.11%
GM growth 3Y0.47%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
RGP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RGP has about the same amout of shares outstanding than it did 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
An Altman-Z score of 3.02 indicates that RGP is not in any danger for bankruptcy at the moment.
RGP has a Altman-Z score (3.02) 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 | 3.02 |
ROIC/WACC0.27
WACC8.99%
2.3 Liquidity
RGP has a Current Ratio of 2.63. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP has a better Current ratio (2.63) than 83.95% of its industry peers.
RGP has a Quick Ratio of 2.63. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RGP (2.63) is better than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
RGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.14%.
Measured over the past years, RGP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.04% on average per year.
RGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.27%.
The Revenue has been decreasing by -2.79% on average over the past years.
EPS 1Y (TTM)-65.14%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-147.06%
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-14.45%
3.2 Future
The Earnings Per Share is expected to decrease by -24.13% on average over the next years. This is quite bad
Based on estimates for the next years, RGP will show a small growth in Revenue. The Revenue will grow by 1.56% on average per year.
EPS Next Y-88.05%
EPS Next 2Y-24.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.6%
Revenue Next 2Y-4.73%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
RGP is valuated correctly with a Price/Earnings ratio of 15.87.
Compared to the rest of the industry, the Price/Earnings ratio of RGP indicates a somewhat cheap valuation: RGP is cheaper than 69.14% of the companies listed in the same industry.
RGP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of RGP.
RGP's Price/Forward Earnings ratio is rather cheap when compared to the industry. RGP is cheaper than 80.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RGP to the average of the S&P500 Index (21.90), we can say RGP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGP is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RGP is valued a bit more expensive than the industry average as 64.20% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.07 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as RGP's earnings are expected to decrease with -24.13% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.17%, RGP is a good candidate for dividend investing.
RGP's Dividend Yield is rather good when compared to the industry average which is at 2.12. RGP pays more dividend than 97.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
5.2 History
The dividend of RGP has a limited annual growth rate of 1.89%.
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)1.89%
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.
DP-17.36%
EPS Next 2Y-24.13%
EPS Next 3YN/A
6.03
+0.1 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.66%
Inst Owner ChangeN/A
Ins Owners2.66%
Ins Owner Change0.33%
Market Cap199.41M
Analysts48
Price Target9.18 (52.24%)
Short Float %1.48%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly Dividend0.56
Dividend Growth(5Y)1.89%
DP-17.36%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2636.34%
Min EPS beat(2)20.79%
Max EPS beat(2)5251.89%
EPS beat(4)3
Avg EPS beat(4)1362.68%
Min EPS beat(4)-100%
Max EPS beat(4)5251.89%
EPS beat(8)7
Avg EPS beat(8)727.74%
EPS beat(12)11
Avg EPS beat(12)494.35%
EPS beat(16)15
Avg EPS beat(16)397.12%
Revenue beat(2)1
Avg Revenue beat(2)1.9%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)5.22%
Revenue beat(4)2
Avg Revenue beat(4)1.62%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)5.22%
Revenue beat(8)3
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)10
Avg Revenue beat(16)1.39%
PT rev (1m)-25%
PT rev (3m)-19.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-125%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.36 | ||
| P/FCF | 72.07 | ||
| P/OCF | 37.53 | ||
| P/B | 0.72 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)0.38
EY6.3%
EPS(NY)0.54
Fwd EY8.88%
FCF(TTM)0.08
FCFY1.39%
OCF(TTM)0.16
OCFY2.66%
SpS16.94
BVpS8.4
TBVpS4.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.75% | ||
| ROE | -38.87% | ||
| ROCE | 3.34% | ||
| ROIC | 2.43% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 6.62% | ||
| OM | 1.8% | ||
| PM (TTM) | N/A | ||
| GM | 37.67% | ||
| FCFM | 0.49% |
ROA(3y)8.63%
ROA(5y)7.22%
ROE(3y)12.06%
ROE(5y)10.63%
ROIC(3y)10.28%
ROIC(5y)8.66%
ROICexc(3y)13.68%
ROICexc(5y)11.32%
ROICexgc(3y)41.16%
ROICexgc(5y)34.71%
ROCE(3y)14.15%
ROCE(5y)11.92%
ROICexcg growth 3Y-5.93%
ROICexcg growth 5Y-14.66%
ROICexc growth 3Y-5.91%
ROICexc growth 5Y-13.1%
OM growth 3Y-7.52%
OM growth 5Y-8.17%
PM growth 3Y-6.01%
PM growth 5Y-5.11%
GM growth 3Y0.47%
GM growth 5Y0.08%
F-Score5
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 30.02% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 28.35 | ||
| Cash Conversion | 28.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 3.02 |
F-Score5
WACC8.99%
ROIC/WACC0.27
Cap/Depr(3y)23.98%
Cap/Depr(5y)27.19%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.35%
Profit Quality(3y)104.77%
Profit Quality(5y)124.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-65.14%
EPS 3Y-4.27%
EPS 5Y-1.04%
EPS Q2Q%-147.06%
EPS Next Y-88.05%
EPS Next 2Y-24.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y0.17%
Revenue growth 5Y-2.79%
Sales Q2Q%-14.45%
Revenue Next Year-12.6%
Revenue Next 2Y-4.73%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-74.27%
EBIT growth 3Y-7.36%
EBIT growth 5Y-10.73%
EBIT Next Year-3.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-96.89%
FCF growth 3Y-16.81%
FCF growth 5Y-10.77%
OCF growth 1Y-94.14%
OCF growth 3Y-18.13%
OCF growth 5Y-12.86%