RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally. More Details
Very undervalued with high growth potential.
Share Price & News
How has RM's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RM. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: RM.'s weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: RM. exceeded the UK Software industry which returned 6.5% over the past year.
Return vs Market: RM. underperformed the UK Market which returned 27.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is RM's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall StDid You Participate In Any Of RM's (LON:RM.) Respectable 77% Return?
3 weeks ago | Simply Wall StIs Now An Opportune Moment To Examine RM plc (LON:RM.)?
1 month ago | Simply Wall StDo Fundamentals Have Any Role To Play In Driving RM plc's (LON:RM.) Stock Up Recently?
Is RM undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RM. (£2.27) is trading below our estimate of fair value (£3.2)
Significantly Below Fair Value: RM. is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RM. is good value based on its PE Ratio (22.2x) compared to the UK Software industry average (53.2x).
PE vs Market: RM. is good value based on its PE Ratio (22.2x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: RM. is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: RM. is good value based on its PB Ratio (3.4x) compared to the GB Software industry average (4.1x).
How is RM forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RM.'s forecast earnings growth (41.2% per year) is above the savings rate (0.9%).
Earnings vs Market: RM.'s earnings (41.2% per year) are forecast to grow faster than the UK market (17.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RM.'s revenue (5.3% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: RM.'s revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RM.'s Return on Equity is forecast to be high in 3 years time (25.1%)
How has RM performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RM. has high quality earnings.
Growing Profit Margin: RM.'s current net profit margins (4.5%) are lower than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: RM.'s earnings have grown by 3.4% per year over the past 5 years.
Accelerating Growth: RM.'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RM. had negative earnings growth (-55.8%) over the past year, making it difficult to compare to the Software industry average (3.3%).
Return on Equity
High ROE: RM.'s Return on Equity (15.2%) is considered low.
How is RM's financial position?
Financial Position Analysis
Short Term Liabilities: RM.'s short term assets (£63.4M) do not cover its short term liabilities (£64.6M).
Long Term Liabilities: RM.'s short term assets (£63.4M) exceed its long term liabilities (£52.4M).
Debt to Equity History and Analysis
Debt Level: RM.'s debt to equity ratio (13.1%) is considered satisfactory.
Reducing Debt: RM. had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: RM.'s debt is well covered by operating cash flow (290.6%).
Interest Coverage: RM.'s interest payments on its debt are well covered by EBIT (13.3x coverage).
What is RM current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RM.'s dividend (2.65%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: RM.'s dividend (2.65%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
Stability and Growth of Payments
Stable Dividend: RM.'s dividend payments have been volatile in the past 10 years.
Growing Dividend: RM.'s dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.4%), RM.'s dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RM.'s dividends in 3 years are forecast to be well covered by earnings (27.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Neil Martin (48 yo)
Mr. Neil Martin, ACMA, has been the Chief Execuitve Officer of RM Plc since March 01, 2021 and served as its Chief Financial Officer since September 28, 2015 until March 01, 2021. Mr. Martin has been an Ex...
CEO Compensation Analysis
Compensation vs Market: Neil's total compensation ($USD658.06K) is about average for companies of similar size in the UK market ($USD568.00K).
Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.
Experienced Board: RM.'s board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
RM plc's company bio, employee growth, exchange listings and data sources
- Name: RM plc
- Ticker: RM.
- Exchange: LSE
- Founded: 1973
- Industry: Application Software
- Sector: Software
- Market Cap: UK£187.908m
- Shares outstanding: 82.96m
- Website: https://www.rmplc.com
Number of Employees
- RM plc
- 142B Park Drive
- Milton Park
- OX14 4SE
- United Kingdom
RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally. The company operates through three divisions: RM Resources, RM Results, and RM Education....
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/17 01:46|
|End of Day Share Price||2021/05/14 00:00|
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.