NasdaqGM:RCMT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.


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

Stable Share Price: RCMT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

RCMT

1.4%

US Professional Services

0.7%

US Market


1 Year Return

-45.4%

RCMT

17.4%

US Professional Services

20.1%

US Market

Return vs Industry: RCMT underperformed the US Professional Services industry which returned 14.4% over the past year.

Return vs Market: RCMT underperformed the US Market which returned 17.1% over the past year.


Shareholder returns

RCMTIndustryMarket
7 Day4.0%1.4%0.7%
30 Day17.1%10.3%6.4%
90 Day42.5%24.8%20.1%
1 Year-45.4%-45.4%18.3%17.4%22.6%20.1%
3 Year-64.3%-69.2%57.6%52.9%45.1%35.7%
5 Year-48.9%-63.7%96.1%85.7%79.7%60.3%

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

Below Fair Value: RCMT ($1.71) is trading below our estimate of fair value ($165.98)

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


Price To Earnings Ratio

PE vs Industry: RCMT is unprofitable, so we can't compare its PE Ratio to the US Professional Services industry average.

PE vs Market: RCMT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RCMT is good value based on its PB Ratio (1x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

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

141.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCMT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RCMT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RCMT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RCMT's revenue (11.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: RCMT's revenue (11.1% 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


Next Steps

Past Performance

How has RCM Technologies performed over the past 5 years?

-32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCMT is currently unprofitable.

Growing Profit Margin: RCMT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RCMT is unprofitable, and losses have increased over the past 5 years at a rate of 32.9% per year.

Accelerating Growth: Unable to compare RCMT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RCMT is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-0.5%).


Return on Equity

High ROE: RCMT has a negative Return on Equity (-23.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is RCM Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: RCMT's short term assets ($43.6M) exceed its short term liabilities ($21.2M).

Long Term Liabilities: RCMT's short term assets ($43.6M) exceed its long term liabilities ($25.5M).


Debt to Equity History and Analysis

Debt Level: RCMT's debt to equity ratio (56.9%) is considered high.

Reducing Debt: RCMT's debt to equity ratio has increased from 45.1% to 56.9% over the past 5 years.

Debt Coverage: RCMT's debt is well covered by operating cash flow (115.6%).

Interest Coverage: RCMT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


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.


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

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

8.8yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Vizi
Executive Chairman & President4.92yrsUS$430.09k8.96%
$ 1.7m
Leon Kopyt
Independent Founder & Chairman Emeritus4.92yrsUS$90.00k5.17%
$ 999.8k
Kevin Miller
CFO, Treasurer & Secretary11.83yrsUS$406.83k5.44%
$ 1.1m
Michael Saks
Division President of Health Care Services13.25yrsUS$540.23k0.93%
$ 179.3k
Frank Petraglia
Division President of Engineering Services5.67yrsUS$494.57k0.87%
$ 167.6k
Michael Boyle
Division President of Information Technology Services2.17yrsno data0.28%
$ 54.0k
Christopher Giunta
Senior VP16.42yrsno datano data

8.8yrs

Average Tenure

59yo

Average Age

Experienced Management: RCMT's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Vizi
Executive Chairman & President4.92yrsUS$430.09k8.96%
$ 1.7m
Leon Kopyt
Independent Founder & Chairman Emeritus4.92yrsUS$90.00k5.17%
$ 999.8k
Roger Ballou
Lead Independent Director2.17yrsUS$125.00k1.53%
$ 295.9k
S. Snodgrass
Independent Director10.42yrsUS$100.00k0.50%
$ 96.8k
Richard Genovese
Independent Director1.67yrsUS$95.00k0.11%
$ 20.5k
Swarna Kakodkar
Independent Director0.67yrUS$47.30kno data

3.5yrs

Average Tenure

67yo

Average Age

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 bought more shares than they have sold 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 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$19.322m
  • Shares outstanding: 11.30m
  • 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

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 Analysis2020/08/12 23:39
End of Day Share Price2020/08/12 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.