Logo image of RGP

RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis

NASDAQ:RGP - Nasdaq - US76122Q1058 - Common Stock - Currency: USD

5.79  +0.52 (+9.87%)

After market: 5.85 +0.06 (+1.04%)

Fundamental Rating

5

Overall RGP gets a fundamental rating of 5 out of 10. We evaluated RGP against 82 industry peers in the Professional Services industry. No worries on liquidiy or solvency for RGP as it has an excellent financial health rating, but there are worries on the profitability. RGP has a valuation in line with the averages, but it does not seem to be growing. RGP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

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.
Of the past 5 years RGP 4 years had a positive operating cash flow.
RGP Yearly Net Income VS EBIT VS OCF VS FCFRGP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

1.2 Ratios

Looking at the Return On Assets, with a value of -28.75%, RGP is doing worse than 89.02% of the companies in the same industry.
RGP's Return On Equity of -38.87% is on the low side compared to the rest of the industry. RGP is outperformed by 79.27% of its industry peers.
The Return On Invested Capital of RGP (2.43%) 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 12.36%.
The 3 year average ROIC (10.28%) for RGP is well above the current ROIC(2.43%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
RGP Yearly ROA, ROE, ROICRGP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

In the last couple of years the Profit Margin of RGP has declined.
RGP has a Operating Margin of 1.80%. This is comparable to the rest of the industry: RGP outperforms 41.46% of its industry peers.
RGP's Operating Margin has declined in the last couple of years.
RGP has a Gross Margin (37.67%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RGP has remained more or less at the same level.
Industry RankSector 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%
RGP Yearly Profit, Operating, Gross MarginsRGP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

More info and screens

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RGP is still creating some value.
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.
RGP Yearly Shares OutstandingRGP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
RGP Yearly Total Debt VS Total AssetsRGP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 2.97 indicates that RGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, RGP is in line with its industry, outperforming 53.66% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.97
ROIC/WACC0.27
WACC9.04%
RGP Yearly LT Debt VS Equity VS FCFRGP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 2.63 indicates that RGP has no problem at all paying its short term obligations.
RGP has a Current ratio of 2.63. This is amongst the best in the industry. RGP outperforms 84.15% 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 84.15% of its industry peers.
Industry RankSector Rank
Current Ratio 2.63
Quick Ratio 2.63
RGP Yearly Current Assets VS Current LiabilitesRGP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

More info and screens

1

3. Growth

3.1 Past

RGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.04%.
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.
EPS 1Y (TTM)-72.04%
EPS 3Y-50.85%
EPS 5Y-23.31%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 quite strong growth in Revenue. The Revenue will grow by 9.47% on average per year.
EPS Next Y105.88%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y9.47%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
RGP Yearly Revenue VS EstimatesRGP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
RGP Yearly EPS VS EstimatesRGP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.27, which indicates a rather expensive current valuation of RGP.
RGP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.05. RGP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of RGP.
79.27% of the companies in the same industry are more expensive than RGP, based on the Price/Forward Earnings ratio.
RGP is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.27
Fwd PE 10.82
RGP Price Earnings VS Forward Price EarningsRGP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

RGP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RGP is cheaper than 91.46% of the companies in the same industry.
RGP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RGP is more expensive than 63.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 69.2
EV/EBITDA 6.42
RGP Per share dataRGP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)0.21
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

More info and screens

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.84%, RGP is a good candidate for dividend investing.
RGP's Dividend Yield is rather good when compared to the industry average which is at 2.08. RGP pays more dividend than 97.56% of the companies in the same industry.
RGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.84%

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
RGP Yearly Dividends per shareRGP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

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-17.36%
EPS Next 2YN/A
EPS Next 3YN/A
RGP Yearly Income VS Free CF VS DividendRGP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

More info and screens

RESOURCES CONNECTION INC

NASDAQ:RGP (7/25/2025, 8:22:31 PM)

After market: 5.85 +0.06 (+1.04%)

5.79

+0.52 (+9.87%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)07-24 2025-07-24/amc
Earnings (Next)09-29 2025-09-29
Inst Owners85.66%
Inst Owner ChangeN/A
Ins Owners2.66%
Ins Owner Change0.16%
Market Cap191.48M
Analysts48
Price Target12.24 (111.4%)
Short Float %1.77%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 4.84%
Yearly Dividend0.56
Dividend Growth(5Y)1.89%
DP-17.36%
Div Incr Years0
Div Non Decr Years8
Ex-Date06-23 2025-06-23 (0.07)
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)33.33%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 22.27
Fwd PE 10.82
P/S 0.34
P/FCF 69.2
P/OCF 36.03
P/B 0.69
P/tB 1.2
EV/EBITDA 6.42
EPS(TTM)0.26
EY4.49%
EPS(NY)0.54
Fwd EY9.25%
FCF(TTM)0.08
FCFY1.45%
OCF(TTM)0.16
OCFY2.78%
SpS16.94
BVpS8.4
TBVpS4.82
PEG (NY)0.21
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.97
F-Score5
WACC9.04%
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.98%
Revenue Next Year3.85%
Revenue Next 2Y9.47%
Revenue Next 3YN/A
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%