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.

Risks

  • RCM Technologies is covered by less than 3 analysts.

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

3.8%

NasdaqGM:RCMT

1.2%

US Professional Services

0.2%

US Market


1 Year Return

-31.3%

NasdaqGM:RCMT

8.5%

US Professional Services

-0.7%

US Market

RCMT underperformed the Professional Services industry which returned 8.5% over the past year.

RCMT underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

RCMTIndustryMarket
7 Day3.8%1.2%0.2%
30 Day-3.0%0.9%-2.7%
90 Day-7.1%9.7%1.6%
1 Year-31.3%-31.3%9.4%8.5%1.6%-0.7%
3 Year-30.9%-40.4%50.3%45.3%40.0%30.9%
5 Year-18.2%-55.5%73.4%64.1%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

RCM Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).

RCM Technologies's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

RCM Technologies is good value based on earnings compared to the US Professional Services industry average.

RCM Technologies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

RCM Technologies is good value based on expected growth next year.


Price Based on Value of Assets

RCM Technologies is good value based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RCM Technologies's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

RCM Technologies's earnings are expected to grow significantly at over 20% yearly.

RCM Technologies's revenue growth is positive but not above the United States of America market average.

RCM Technologies's earnings growth is expected to exceed the United States of America market average.

RCM Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if RCM Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

RCM Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

RCM Technologies's 1-year earnings growth exceeds its 5-year average (48% vs -18%)

RCM Technologies's earnings growth has exceeded the US Professional Services industry average in the past year (48% vs 34.4%).


Return on Equity

RCM Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RCM Technologies used its assets less efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

RCM Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RCM Technologies's financial position?


Financial Position Analysis

RCM Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

RCM Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

RCM Technologies's level of debt (101.3%) compared to net worth is high (greater than 40%).

Unable to establish if RCM Technologies's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (3.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate RCM Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate RCM Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as RCM Technologies has not reported any payouts.

Unable to verify if RCM Technologies's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as RCM Technologies has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

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


Management Age and Tenure

7.8yrs

Average Tenure

58yo

Average Age

The average tenure for the RCM Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.9yrs

Average Tenure

68yo

Average Age

The tenure for the RCM Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.9yrs
    • Compensation: US$87.92k
  • Kevin Miller (52yo)

    CFO, Treasurer & Secretary

    • Tenure: 10.8yrs
    • Compensation: US$482.00k
  • Chris Giunta (58yo)

    Senior VP

    • Tenure: 15.4yrs
  • Brad Vizi (35yo)

    Executive Chairman & President

    • Tenure: 3.9yrs
    • Compensation: US$587.41k
  • Michael Saks (63yo)

    Division President of Health Care Services

    • Tenure: 12.3yrs
    • Compensation: US$481.09k
  • Frank Petraglia (63yo)

    Division President of Engineering Services

    • Tenure: 4.7yrs
    • Compensation: US$494.57k
  • Michael Boyle (47yo)

    Division President of Information Technology Services

    • Tenure: 1.2yrs

Board Members

  • Roger Ballou (68yo)

    Lead Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$115.21k
  • S. Snodgrass (68yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: US$96.88k
  • Leon Kopyt (74yo)

    Founder & Chairman Emeritus

    • Tenure: 3.9yrs
    • Compensation: US$87.92k
  • Brad Vizi (35yo)

    Executive Chairman & President

    • Tenure: 3.9yrs
    • Compensation: US$587.41k
  • Rick Genovese (64yo)

    Director

    • Tenure: 0.7yrs
    • 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$42.107m
  • 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 Analysis2019/08/21 23:42
End of Day Share Price2019/08/21 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.