NasdaqGS:RGP

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Resources Connection's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RGP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RGP's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

RGP

-6.9%

US Professional Services

-4.6%

US Market


1 Year Return

1.8%

RGP

23.4%

US Professional Services

38.5%

US Market

Return vs Industry: RGP underperformed the US Professional Services industry which returned 22.9% over the past year.

Return vs Market: RGP underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

RGPIndustryMarket
7 Day3.4%-6.9%-4.6%
30 Day7.5%-0.7%0.6%
90 Day2.1%-1.5%1.9%
1 Year6.7%1.8%24.3%23.4%41.5%38.5%
3 Year-6.8%-16.9%51.5%47.4%56.7%46.7%
5 Year4.0%-12.7%114.0%102.2%123.5%98.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RGP ($12.76) is trading above our estimate of fair value ($9.75)

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


Price To Earnings Ratio

PE vs Industry: RGP is poor value based on its PE Ratio (33.4x) compared to the US Professional Services industry average (28.2x).

PE vs Market: RGP is poor value based on its PE Ratio (33.4x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: RGP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: RGP is good value based on its PB Ratio (1.3x) compared to the US Professional Services industry average (3.8x).


Next Steps

Future Growth

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

78.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGP's forecast earnings growth (78.9% per year) is above the savings rate (2%).

Earnings vs Market: RGP's earnings (78.9% per year) are forecast to grow faster than the US market (20.2% per year).

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

Revenue vs Market: RGP's revenue (5.8% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: RGP's revenue (5.8% 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 RGP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Resources Connection performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGP has a large one-off loss of $11.9M impacting its November 28 2020 financial results.

Growing Profit Margin: RGP's current net profit margins (1.9%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: RGP's earnings have declined by 0.4% 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 (-62.2%) over the past year, making it difficult to compare to the Professional Services industry average (-1.1%).


Return on Equity

High ROE: RGP's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Resources Connection's financial position?


Financial Position Analysis

Short Term Liabilities: RGP's short term assets ($218.6M) exceed its short term liabilities ($91.6M).

Long Term Liabilities: RGP's short term assets ($218.6M) exceed its long term liabilities ($113.4M).


Debt to Equity History and Analysis

Debt Level: RGP's debt to equity ratio (22.2%) 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 (91%).

Interest Coverage: RGP's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGP's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: RGP's dividend (4.39%) is in the top 25% of dividend payers in the US market (3.72%)


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 high payout ratio (146.6%), RGP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Kate Duchene (57 yo)

4.17yrs

Tenure

US$1,890,211

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kate's total compensation ($USD1.89M) is about average for companies of similar size in the US market ($USD1.47M).

Compensation vs Earnings: Kate's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Murray
Co-Founder & Independent Chairman21.83yrsUS$400.00k3.45%
$ 14.5m
Kate Duchene
CEO, President & Director4.17yrsUS$1.89m0.30%
$ 1.2m
Jennifer Ryu
CFO & Executive VP1.5yrsUS$871.18k0.034%
$ 143.8k
Timothy Brackney
President & COO1.83yrsUS$1.62m0.015%
$ 61.8k
Michael Allen
Vice President of F&A and Technology & Digital1.5yrsno datano data
Bob Castle
Interim Chief Information Officer1.42yrsno datano data
Alice Washington
General Counselno datano datano data
Susan Hicks
Vice President of Salesno datano datano data
Katy Conway
Chief People Officer1.08yrsno datano data
Suzanne Stanton
Senior Vice President of Revenue3.17yrsno datano data
Nestor Gonzalez-Monroy
Senior Managing Director – Latin America12.5yrsno datano data
Joni Noel
Senior Vice President of Healthcareno datano datano data

1.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: RGP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Donald Murray
Co-Founder & Independent Chairman21.83yrsUS$400.00k3.45%
$ 14.5m
Kate Duchene
CEO, President & Director4.17yrsUS$1.89m0.30%
$ 1.2m
Neil Dimick
Independent Director17.25yrsUS$175.01k0.11%
$ 456.8k
Robert Kistinger
Independent Director14.5yrsUS$157.51k0.11%
$ 456.8k
Jolene Sykes-Sarkis
Independent Director18.83yrsUS$165.01k0.11%
$ 456.8k
A. Pisano
Lead Independent Director17.08yrsUS$180.01k0.25%
$ 1.1m
Marco Von Maltzan
Independent Director2.58yrsUS$155.01kno data
Anthony Cherbak
Director11.5yrsUS$150.01k0.19%
$ 790.7k
Michael Wargotz
Independent Director11.75yrsUS$160.01k0.089%
$ 376.5k
Anne Shih
Independent Director13.33yrsUS$152.51k0.19%
$ 789.5k
Lisa Pierozzi
Directorno datano data0.024%
$ 100.2k

13.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: RGP's board of directors are seasoned and experienced ( 13.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Resources Connection, Inc.'s company bio, 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$420.983m
  • Shares outstanding: 32.51m
  • Website: https://www.rgp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2000
RCODB (Deutsche Boerse AG)YesCommon StockDEEURDec 2000

Biography

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 th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:05
End of Day Share Price2021/02/26 00:00
Earnings2020/11/28
Annual Earnings2020/05/30


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.