RESOURCES CONNECTION INC (RGP) Stock Fundamental Analysis
USA - NASDAQ:RGP - US76122Q1058 - Common Stock
4.47 USD
-0.09 (-1.97%)
4.47 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RGP. RGP was compared to 87 industry peers in the Professional Services industry. RGP has a great financial health rating, but its profitability evaluates not so good. RGP has a valuation in line with the averages, but on the other hand it scores bad on growth. RGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RGP was profitable.
RGP had a positive operating cash flow in the past year.
Of the past 5 years RGP 4 years were profitable.
Each year in the past 5 years RGP had a positive operating cash flow.
1.2 Ratios
RGP's Return On Assets of -65.62% is on the low side compared to the rest of the industry. RGP is outperformed by 89.66% of its industry peers.
Looking at the Return On Equity, with a value of -91.34%, RGP is doing worse than 82.76% of the companies in the same industry.
| 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 (38.33%) which is comparable to the rest of the industry.
RGP's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for RGP so they could not be analyzed.
| 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.
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 2.89. 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's Altman-Z score of 2.89 is in line compared to the rest of the industry. RGP outperforms 52.87% 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 | 2.89 |
ROIC/WACCN/A
WACC8.75%
2.3 Liquidity
A Current Ratio of 3.21 indicates that RGP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.21, RGP belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
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 has a better Quick ratio (3.21) than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 3.21 |
3. Growth
3.1 Past
The earnings per share for RGP have decreased strongly by -60.27% in the last year.
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.
RGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.76% yearly.
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
The Earnings Per Share is expected to grow by 19.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.85% 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 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.
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
Based on the Price/Earnings ratio of 15.41, the valuation of RGP can be described as correct.
RGP's Price/Earnings ratio is a bit cheaper when compared to the industry. RGP is cheaper than 71.26% of the companies in the same industry.
RGP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 12.07, which indicates a correct valuation of RGP.
Based on the Price/Forward Earnings ratio, RGP is valued a bit cheaper than 71.26% of the companies in the same industry.
RGP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGP is valued a bit cheaper than 60.92% of the companies in the same industry.
67.82% 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 | 16.93 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
RGP's earnings are expected to grow with 19.35% in the coming years. This may justify a more expensive valuation.
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 6.14%, RGP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, RGP pays a better dividend. On top of this RGP pays more dividend than 94.25% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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
4.47
-0.09 (-1.97%)
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 Change0.12%
Market Cap149.25M
Revenue(TTM)534.63M
Net Income(TTM)-188.48M
Analysts75
Price Target7.01 (56.82%)
Short Float %1.85%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
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)-37.5%
PT rev (3m)-42.71%
EPS NQ rev (1m)266.7%
EPS NQ rev (3m)-82.45%
EPS NY rev (1m)-68.25%
EPS NY rev (3m)-81.13%
Revenue NQ rev (1m)-10.14%
Revenue NQ rev (3m)-10.14%
Revenue NY rev (1m)-9.36%
Revenue NY rev (3m)-11.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 12.07 | ||
| P/S | 0.28 | ||
| P/FCF | 16.93 | ||
| P/OCF | 13.12 | ||
| P/B | 0.72 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)0.29
EY6.49%
EPS(NY)0.37
Fwd EY8.28%
FCF(TTM)0.26
FCFY5.91%
OCF(TTM)0.34
OCFY7.62%
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 | 2.89 |
F-Score7
WACC8.75%
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 3Y3.85%
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 15.41 and the Price/Book (PB) ratio is 0.72.
Can you provide the financial health for RGP stock?
The financial health rating of RESOURCES CONNECTION INC (RGP) is 8 / 10.