AIM:RTC

Stock Analysis Report

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Executive Summary

RTC Group PLC, through its subsidiaries, provides recruitment services in the United Kingdom and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has RTC Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

RTC

4.5%

GB Professional Services

2.6%

GB Market


1 Year Return

-29.5%

RTC

-1.9%

GB Professional Services

-10.3%

GB Market

Return vs Industry: RTC underperformed the UK Professional Services industry which returned -4.1% over the past year.

Return vs Market: RTC underperformed the UK Market which returned -11.5% over the past year.


Shareholder returns

RTCIndustryMarket
7 Day0%4.5%2.6%
30 Day-2.6%-0.2%2.3%
90 Day-15.9%4.8%6.9%
1 Year-27.7%-29.5%0.3%-1.9%-6.7%-10.3%
3 Year-34.9%-44.0%29.8%21.0%-3.9%-15.4%
5 Year-28.5%-44.4%94.4%76.2%16.9%-9.0%

Price Volatility Vs. Market

How volatile is RTC Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RTC Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RTC (£0.37) is trading below our estimate of fair value (£12.32)

Significantly Below Fair Value: RTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RTC is good value based on its PE Ratio (5.3x) compared to the GB Professional Services industry average (16.2x).

PE vs Market: RTC is good value based on its PE Ratio (5.3x) compared to the UK market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RTC is good value based on its PB Ratio (0.8x) compared to the GB Professional Services industry average (2x).


Next Steps

Future Growth

How is RTC Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RTC Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RTC Group performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTC has high quality earnings.

Growing Profit Margin: RTC's current net profit margins (1.1%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: RTC's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: RTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RTC had negative earnings growth (-27.7%) over the past year, making it difficult to compare to the Professional Services industry average (-13.4%).


Return on Equity

High ROE: RTC's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is RTC Group's financial position?


Financial Position Analysis

Short Term Liabilities: RTC's short term assets (£12.5M) exceed its short term liabilities (£8.2M).

Long Term Liabilities: RTC's short term assets (£12.5M) exceed its long term liabilities (£2.9M).


Debt to Equity History and Analysis

Debt Level: RTC's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: RTC's debt to equity ratio has reduced from 209.8% to 12.3% over the past 5 years.

Debt Coverage: RTC's debt is well covered by operating cash flow (759.6%).

Interest Coverage: RTC's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Next Steps

Dividend

What is RTC Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RTC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RTC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RTC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RTC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RTC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RTC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average board tenure


CEO

Andy Pendlebury (59 yo)

12.83yrs

Tenure

UK£593,000

Compensation

Mr. Andrew M. Pendlebury, also known as Andy, has been Group Chief Executive Officer of RTC Group plc (alternate name ATA Group PLC) since October 1, 2007. Mr. Pendlebury served as Chief Executive, enginee ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD775.70K) is above average for companies of similar size in the UK market ($USD358.32K).

Compensation vs Earnings: Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
William Douie
Group Executive Chairman28.58yrsUK£122.00k16.84%
£ 937.1k
Andrew Pendlebury
Group CEO & Director12.83yrsUK£593.00k4.87%
£ 271.1k
Sarah Dye
Group Finance Director7.5yrsUK£326.00k0.30%
£ 16.7k
Brian May
Senior Independent Non-Executive Director5.58yrsUK£30.00k0.21%
£ 11.7k

10.3yrs

Average Tenure

64yo

Average Age

Experienced Board: RTC's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RTC Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RTC Group plc
  • Ticker: RTC
  • Exchange: AIM
  • Founded: 1963
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£5.565m
  • Shares outstanding: 14.31m
  • Website: https://www.rtcgroupplc.co.uk

Number of Employees


Location

  • RTC Group plc
  • The Derby Conference Centre
  • London Road
  • Derby
  • Derbyshire
  • DE24 8UX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1998

Biography

RTC Group PLC, through its subsidiaries, provides recruitment services in the United Kingdom and internationally. It offers technical recruitment solutions to the general engineering, manufacturing, transp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:08
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.