company background image
RCMT

RCM Technologies NasdaqGM:RCMT Stock Report

Last Price

US$23.58

Market Cap

US$238.1m

7D

7.3%

1Y

470.9%

Updated

27 Jun, 2022

Data

Company Financials +
RCMT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends0/6

RCMT Stock Overview

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia.

RCM Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RCM Technologies
Historical stock prices
Current Share PriceUS$23.58
52 Week HighUS$28.82
52 Week LowUS$3.70
Beta1.01
1 Month Change-0.46%
3 Month Change167.65%
1 Year Change470.94%
3 Year Change553.19%
5 Year Change368.79%
Change since IPO57.20%

Recent News & Updates

Jun 16
Estimating The Fair Value Of RCM Technologies, Inc. (NASDAQ:RCMT)

Estimating The Fair Value Of RCM Technologies, Inc. (NASDAQ:RCMT)

Today we will run through one way of estimating the intrinsic value of RCM Technologies, Inc. ( NASDAQ:RCMT ) by taking...

May 17
Should You Think About Buying RCM Technologies, Inc. (NASDAQ:RCMT) Now?

Should You Think About Buying RCM Technologies, Inc. (NASDAQ:RCMT) Now?

RCM Technologies, Inc. ( NASDAQ:RCMT ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

RCMTUS Professional ServicesUS Market
7D7.3%7.2%6.3%
1Y470.9%-16.1%-18.8%

Return vs Industry: RCMT exceeded the US Professional Services industry which returned -17.3% over the past year.

Return vs Market: RCMT exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is RCMT's price volatile compared to industry and market?
RCMT volatility
RCMT Average Weekly Movement19.6%
Professional Services Industry Average Movement6.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: RCMT is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 20% a week.

Volatility Over Time: RCMT's weekly volatility has increased from 13% to 20% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19713,880n/ahttps://www.rcmt.com

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences and Information Technology. The Engineering segment offers a range of engineering services, including project management engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, and 3D/BIM integrated design.

RCM Technologies Fundamentals Summary

How do RCM Technologies's earnings and revenue compare to its market cap?
RCMT fundamental statistics
Market CapUS$238.08m
Earnings (TTM)US$16.50m
Revenue (TTM)US$241.29m

14.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCMT income statement (TTM)
RevenueUS$241.29m
Cost of RevenueUS$175.59m
Gross ProfitUS$65.69m
Other ExpensesUS$49.19m
EarningsUS$16.50m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.63
Gross Margin27.23%
Net Profit Margin6.84%
Debt/Equity Ratio50.6%

How did RCMT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RCMT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCMT?

Other financial metrics that can be useful for relative valuation.

RCMT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA13.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does RCMT's PE Ratio compare to its peers?

RCMT PE Ratio vs Peers
The above table shows the PE ratio for RCMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average77.3x
MG Mistras Group
48.6x54.1%US$187.5m
RDVT Red Violet
221.8xn/aUS$297.2m
FC Franklin Covey
28.8x3.9%US$583.0m
RGP Resources Connection
10x-0.5%US$699.2m
RCMT RCM Technologies
14.4x15.0%US$238.1m

Price-To-Earnings vs Peers: RCMT is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (77.3x).


Price to Earnings Ratio vs Industry

How does RCMT's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: RCMT is good value based on its Price-To-Earnings Ratio (14.4x) compared to the US Professional Services industry average (15.8x)


Price to Earnings Ratio vs Fair Ratio

What is RCMT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: RCMT is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).


Share Price vs Fair Value

What is the Fair Price of RCMT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCMT ($23.58) is trading above our estimate of fair value ($19.97)

Significantly Below Fair Value: RCMT is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: RCMT is good value based on its PEG Ratio (1x)


Discover undervalued companies

Future Growth

How is RCM Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCMT's forecast earnings growth (15% per year) is above the savings rate (1.9%).

Earnings vs Market: RCMT's earnings (15% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: RCMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: RCMT's revenue (14.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: RCMT's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RCMT's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has RCM Technologies performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RCMT has a large one-off gain of $4.1M impacting its April 2 2022 financial results.

Growing Profit Margin: RCMT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RCMT's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: RCMT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RCMT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (33.1%).


Return on Equity

High ROE: RCMT's Return on Equity (54.6%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is RCM Technologies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RCMT's short term assets ($63.1M) exceed its short term liabilities ($35.7M).

Long Term Liabilities: RCMT's short term assets ($63.1M) exceed its long term liabilities ($18.4M).


Debt to Equity History and Analysis

Debt Level: RCMT's net debt to equity ratio (47.8%) is considered high.

Reducing Debt: RCMT's debt to equity ratio has increased from 39.8% to 50.6% over the past 5 years.

Debt Coverage: RCMT's debt is well covered by operating cash flow (81.7%).

Interest Coverage: RCMT's interest payments on its debt are well covered by EBIT (51.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is RCM Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate RCMT'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 RCMT's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RCMT has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

RCM Technologies has no CEO, or we have no data on them.


Leadership Team

Experienced Management: RCMT's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: RCMT's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RCMT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

RCM Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: RCM Technologies, Inc.
  • Ticker: RCMT
  • Exchange: NasdaqGM
  • Founded: 1971
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Implied Market Cap: US$238.078m
  • Shares outstanding: 10.10m
  • Website: https://www.rcmt.com

Number of Employees


Location

  • RCM Technologies, Inc.
  • 2500 McClellan Avenue
  • Suite 350
  • Pennsauken
  • New Jersey
  • 08109-4613
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/04/02
Annual Earnings2022/01/01


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.