NasdaqGM:RCMT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has RCM Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

RCMT

1.5%

US Professional Services

1.0%

US Market


1 Year Return

-22.8%

RCMT

18.8%

US Professional Services

6.7%

US Market

Return vs Industry: RCMT underperformed the US Professional Services industry which returned 18.8% over the past year.

Return vs Market: RCMT underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

RCMTIndustryMarket
7 Day0.2%1.5%1.0%
30 Day-1.4%0.08%-1.8%
90 Day-12.5%0.9%-1.8%
1 Year-22.8%-22.8%19.9%18.8%9.1%6.7%
3 Year-51.9%-58.5%52.1%46.8%46.1%36.6%
5 Year-28.0%-60.8%90.5%80.3%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is RCM Technologies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RCMT ($2.91) is trading below our estimate of fair value ($7.35)

Significantly Undervalued: RCMT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RCMT is good value based on its PE Ratio (9.2x) compared to the Professional Services industry average (19.1x).

PE vs Market: RCMT is good value based on its PE Ratio (9.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: RCMT is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: RCMT is good value based on its PB Ratio (1.2x) compared to the US Professional Services industry average (2.5x).


Next Steps

Future Growth

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

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCMT's forecast earnings growth (31.3% per year) is above the savings rate (2.7%).

Earnings vs Market: RCMT's earnings (31.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RCMT's revenue (6.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: RCMT's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has RCM Technologies performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RCMT's earnings have declined by -18% per year over the past 5 years.

Accelerating Growth: RCMT's earnings growth over the past year (48%) exceeds its 5-year average (-18% per year).

Earnings vs Industry: RCMT earnings growth over the past year (48%) exceeded the Professional Services industry 36.8%.


Return on Equity

High ROE: RCMT's Return on Equity (13.1%) is considered low.


Return on Assets

ROA vs Industry: RCMT's Return on Assets is below or equal to the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: RCMT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is RCM Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: RCMT's short term assets ($63.9M) exceeds its short term liabilities ($21.8M)

Long Term Liabilities: RCMT's short term assets (63.9M) exceeds its long term liabilities (39.7M)


Debt to Equity History and Analysis

Debt Level: RCMT's debt to equity ratio (101.3%) is considered high

Reducing Debt: Insufficient data to determine if RCMT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RCMT's debt is not well covered by operating cash flow (3.5%).

Interest Coverage: RCMT's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: RCMT has a low level of unsold assets or inventory.

Debt Coverage by Assets: RCMT's debt is covered by short term assets (assets are 2.066210x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of RCM Technologies's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

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


Management Age and Tenure

7.9yrs

Average Tenure

58yo

Average Age

Experienced Management: RCMT's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

68yo

Average Age

Experienced Board: RCMT's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$2,497,04019 Mar 19
Harvest Financial Corporation, Asset Management Arm
EntityCompany
Shares637,000
Max PriceUS$3.92
BuyUS$2,39213 Dec 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares595
Max PriceUS$4.02
BuyUS$9,83411 Dec 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,451
Max PriceUS$4.15
BuyUS$7,26506 Dec 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,770
Max PriceUS$4.14
BuyUS$6,92103 Dec 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,700
Max PriceUS$4.11
BuyUS$2,79828 Nov 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares700
Max PriceUS$4.00
BuyUS$1,99423 Nov 18
Roger Ballou
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares500
Max PriceUS$4.00

Ownership Breakdown


Management Team

  • Leon Kopyt (74yo)

    Founder & Chairman Emeritus

    • Tenure: 4.1yrs
    • Compensation: US$87.92k
  • Kevin Miller (52yo)

    CFO, Treasurer & Secretary

    • Tenure: 11yrs
    • Compensation: US$482.00k
  • Chris Giunta (58yo)

    Senior VP

    • Tenure: 15.6yrs
  • Brad Vizi (35yo)

    Executive Chairman & President

    • Tenure: 4.1yrs
    • Compensation: US$587.41k
  • Michael Saks (63yo)

    Division President of Health Care Services

    • Tenure: 12.4yrs
    • Compensation: US$481.09k
  • Frank Petraglia (63yo)

    Division President of Engineering Services

    • Tenure: 4.8yrs
    • Compensation: US$494.57k
  • Michael Boyle (47yo)

    Division President of Information Technology Services

    • Tenure: 1.3yrs

Board Members

  • Roger Ballou (68yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$115.21k
  • S. Snodgrass (68yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$96.88k
  • Leon Kopyt (74yo)

    Founder & Chairman Emeritus

    • Tenure: 4.1yrs
    • Compensation: US$87.92k
  • Brad Vizi (35yo)

    Executive Chairman & President

    • Tenure: 4.1yrs
    • Compensation: US$587.41k
  • Rick Genovese (64yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$47.39k

Company Information

RCM Technologies, Inc.'s company bio, 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
  • Market Cap: US$37.702m
  • Shares outstanding: 12.96m
  • Website: https://www.rcmt.com

Number of Employees


Location

  • RCM Technologies, Inc.
  • 2500 McClellan Avenue
  • Suite 350
  • Pennsauken
  • New Jersey
  • 8109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCMTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 1980

Biography

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 Informat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/14 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.