RESOURCES CONNECTION INC (RGP)
US76122Q1058 - Common Stock
Overall RGP gets a fundamental rating of 6 out of 10. We evaluated RGP against 81 industry peers in the Professional Services industry. While RGP has a great health rating, its profitability is only average at the moment. RGP has a bad growth rate and is valued cheaply. These ratings would make RGP suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RGP was profitable.
RGP had a positive operating cash flow in the past year.
RGP had positive earnings in each of the past 5 years.
Each year in the past 5 years RGP had a positive operating cash flow.
1.2 Ratios
RGP has a Return On Assets (4.27%) which is comparable to the rest of the industry.
The Return On Equity of RGP (5.39%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.94%, RGP is in line with its industry, outperforming 51.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RGP is in line with the industry average of 12.22%.
The last Return On Invested Capital (6.94%) for RGP is well below the 3 year average (11.55%), which needs to be investigated, but indicates that RGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 5.39% | ||
| ROIC | 6.94% |
ROA(3y)8.87%
ROA(5y)7.86%
ROE(3y)12.94%
ROE(5y)11.86%
ROIC(3y)11.55%
ROIC(5y)10.59%
1.3 Margins
With a Profit Margin value of 3.34%, RGP perfoms like the industry average, outperforming 53.75% of the companies in the same industry.
In the last couple of years the Profit Margin of RGP has grown nicely.
With a Operating Margin value of 5.85%, RGP perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
RGP's Operating Margin has improved in the last couple of years.
The Gross Margin of RGP (39.19%) is comparable to the rest of the industry.
RGP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 3.34% | ||
| GM | 39.19% |
OM growth 3Y22.55%
OM growth 5Y7.55%
PM growth 3Y20.35%
PM growth 5Y19.53%
GM growth 3Y1.01%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RGP is creating some value.
The number of shares outstanding for RGP has been increased compared to 1 year ago.
The number of shares outstanding for RGP has been increased compared to 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 4.21. This indicates that RGP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RGP (4.21) is better than 77.50% of its industry peers.
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 | 4.21 |
ROIC/WACC0.78
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.99 indicates that RGP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.99, RGP belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
RGP has a Quick Ratio of 2.99. This indicates that RGP is financially healthy and has no problem in meeting its short term obligations.
RGP has a better Quick ratio (2.99) than 91.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 |
3. Growth
3.1 Past
RGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.12%.
The Earnings Per Share has been growing by 17.06% on average over the past years. This is quite good.
Looking at the last year, RGP shows a very negative growth in Revenue. The Revenue has decreased by -17.23% in the last year.
Measured over the past years, RGP shows a small growth in Revenue. The Revenue has been growing by 3.47% on average per year.
EPS 1Y (TTM)-51.12%
EPS 3Y26.84%
EPS 5Y17.06%
EPS growth Q2Q-54.05%
Revenue 1Y (TTM)-17.23%
Revenue growth 3Y3.31%
Revenue growth 5Y3.47%
Revenue growth Q2Q-19%
3.2 Future
RGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.14% yearly.
Based on estimates for the next years, RGP will show a decrease in Revenue. The Revenue will decrease by -1.90% on average per year.
EPS Next Y-63.39%
EPS Next 2Y-29.29%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue Next Year-19%
Revenue Next 2Y-7.86%
Revenue Next 3Y-1.9%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RGP is valuated reasonably with a Price/Earnings ratio of 10.18.
91.25% of the companies in the same industry are more expensive than RGP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RGP to the average of the S&P500 Index (24.92), we can say RGP is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.10, the valuation of RGP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 91.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RGP to the average of the S&P500 Index (21.49), we can say RGP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGP indicates a rather cheap valuation: RGP is cheaper than 95.00% of the companies listed in the same industry.
RGP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RGP is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
RGP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-29.29%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
RGP has a Yearly Dividend Yield of 5.09%, which is a nice return.
Compared to an average industry Dividend Yield of 2.09, RGP pays a better dividend. On top of this RGP pays more dividend than 97.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of RGP has a limited annual growth rate of 3.88%.
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 last 3 years.
Dividend Growth(5Y)3.88%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
RGP pays out 84.10% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RGP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP84.1%
EPS Next 2Y-29.29%
EPS Next 3Y2.14%
RESOURCES CONNECTION INC
NASDAQ:RGP (4/26/2024, 7:13:25 PM)
After market: 11.1 0 (0%)11.1
+0.09 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap375.29M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 5.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.85% | ||
| PM (TTM) | 3.34% | ||
| GM | 39.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-51.12%
EPS 3Y26.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y-63.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.23%
Revenue growth 3Y3.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y