RGP

Resources ConnectionNasdaqGS:RGP Stock Report

Market Cap

US$497.8m

7D

-2.9%

1Y

26.3%

Updated

16 Sep, 2021

Data

Company Financials +
RGP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends6/6

RGP Overview

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific.

Resources Connection Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Resources Connection
Historical stock prices
Current Share PriceUS$15.00
52 Week HighUS$10.61
52 Week LowUS$16.50
Beta1.01
1 Month Change-1.25%
3 Month Change4.75%
1 Year Change26.26%
3 Year Change-10.98%
5 Year Change1.97%
Change since IPO87.50%

Recent News & Updates

Sep 02

Resources Connection: Shares Primed To Finally Break Out

Shares have been consolidating for more than a decade now. Sound restructuring and renewed demand look to be moving the needle here. We will enter on a clear breakout.

Aug 05
Resources Connection (NASDAQ:RGP) Has Announced A Dividend Of US$0.14

Resources Connection (NASDAQ:RGP) Has Announced A Dividend Of US$0.14

The board of Resources Connection, Inc. ( NASDAQ:RGP ) has announced that it will pay a dividend on the 23rd of...

Jul 23
A Look At The Fair Value Of Resources Connection, Inc. (NASDAQ:RGP)

A Look At The Fair Value Of Resources Connection, Inc. (NASDAQ:RGP)

Today we will run through one way of estimating the intrinsic value of Resources Connection, Inc. ( NASDAQ:RGP ) by...

Shareholder Returns

RGPUS Professional ServicesUS Market
7D-2.9%-1.4%-0.6%
1Y26.3%28.3%33.6%

Return vs Industry: RGP underperformed the US Professional Services industry which returned 28.7% over the past year.

Return vs Market: RGP underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is RGP's price volatile compared to industry and market?
RGP volatility
RGP Beta1.01
Industry Beta1.07
Market Beta1

Stable Share Price: RGP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RGP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996851Kate Duchenehttps://rgp.com

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. It also provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics.

Resources Connection Fundamentals Summary

How do Resources Connection's earnings and revenue compare to its market cap?
RGP fundamental statistics
Market CapUS$497.80m
Earnings (TTM)US$25.23m
Revenue (TTM)US$629.52m

19.7x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RGP income statement (TTM)
RevenueUS$629.52m
Cost of RevenueUS$388.11m
Gross ProfitUS$241.40m
ExpensesUS$216.18m
EarningsUS$25.23m

Last Reported Earnings

May 29, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.78
Gross Margin38.35%
Net Profit Margin4.01%
Debt/Equity Ratio13.0%

How did RGP perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

72%

Payout Ratio

Valuation

Is Resources Connection undervalued compared to its fair value and its price relative to the market?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGP ($15) is trading below our estimate of fair value ($17.06)

Significantly Below Fair Value: RGP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RGP is good value based on its PE Ratio (19.7x) compared to the US Professional Services industry average (25.8x).

PE vs Market: RGP is poor value based on its PE Ratio (19.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RGP is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: RGP is good value based on its PB Ratio (1.5x) compared to the US Professional Services industry average (3x).


Future Growth

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

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGP's forecast earnings growth (21.9% per year) is above the savings rate (2%).

Earnings vs Market: RGP's earnings (21.9% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: RGP's revenue (9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: RGP's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RGP's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Resources Connection performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGP has a large one-off loss of $11.5M impacting its May 29 2021 financial results.

Growing Profit Margin: RGP's current net profit margins (4%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: RGP's earnings have declined by 1.7% per year over the past 5 years.

Accelerating Growth: RGP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RGP had negative earnings growth (-11%) over the past year, making it difficult to compare to the Professional Services industry average (19%).


Return on Equity

High ROE: RGP's Return on Equity (7.7%) is considered low.


Financial Health

How is Resources Connection's financial position?


Financial Position Analysis

Short Term Liabilities: RGP's short term assets ($235.3M) exceed its short term liabilities ($100.9M).

Long Term Liabilities: RGP's short term assets ($235.3M) exceed its long term liabilities ($90.2M).


Debt to Equity History and Analysis

Debt Level: RGP's debt to equity ratio (13%) is considered satisfactory.

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

Debt Coverage: RGP's debt is well covered by operating cash flow (92.9%).

Interest Coverage: RGP's interest payments on its debt are well covered by EBIT (22.3x coverage).


Balance Sheet


Dividend

What is Resources Connection current dividend yield, its reliability and sustainability?

3.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGP's dividend (3.73%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: RGP's dividend (3.73%) is in the top 25% of dividend payers in the US market (3.58%)


Stability and Growth of Payments

Stable Dividend: RGP's dividends per share have been stable in the past 10 years.

Growing Dividend: RGP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), RGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RGP's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Kate Duchene (58 yo)

4.75yrs

Tenure

US$2,910,771

Compensation

Ms. Kate W. Duchene has been Chief Executive Officer of Resources Connection, Inc. since December 19, 2016. Ms. Duchene serves as Executive Vice President and Chief Legal Officer of Resources Connection LL...


CEO Compensation Analysis

Compensation vs Market: Kate's total compensation ($USD2.91M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Kate's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: RGP's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: RGP's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Resources Connection, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Resources Connection, Inc.
  • Ticker: RGP
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$497.801m
  • Shares outstanding: 33.19m
  • Website: https://rgp.com

Number of Employees


Location

  • Resources Connection, Inc.
  • 17101 Armstrong Avenue
  • Suite 100
  • Irvine
  • California
  • 92614
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:48
End of Day Share Price2021/09/16 00:00
Earnings2021/05/29
Annual Earnings2021/05/29


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.