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RDCM

RADCOM NasdaqCM:RDCM Stock Report

Last Price

US$11.03

Market Cap

US$159.2m

7D

-6.7%

1Y

-0.4%

Updated

26 Sep, 2022

Data

Company Financials +
RDCM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health6/6
Dividends0/6

RDCM Stock Overview

RADCOM Ltd. provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers (CSPs).

RADCOM Ltd. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RADCOM
Historical stock prices
Current Share PriceUS$11.03
52 Week HighUS$14.70
52 Week LowUS$9.86
Beta0.97
1 Month Change-7.67%
3 Month Change-0.60%
1 Year Change-0.42%
3 Year Change20.45%
5 Year Change-47.83%
Change since IPO-74.93%

Recent News & Updates

Sep 13

RADCOM renews cloud-native assurance solutions contract with Rakuten Mobile

RADCOM (NASDAQ:RDCM) renews its initial contract signed in 2019 with Rakuten Mobile to continue its successful partnership in providing advanced cloud-native assurance solutions for Rakuten Mobile's network in Japan. "Following our successful partnership with Rakuten Mobile, we continue to work closely together as the Japanese operator launches new innovative services and expands their network. Our advanced cloud-native solutions ensure unparalleled focus on network service quality, efficient impact analysis, and fast detection of potential issues." said Rami Amit, chief technology officer of RADCOM.

Aug 25

RADCOM Ramps Up Guidance On 5G Rollouts

Summary RADCOM Ltd. recently reported its Q2 2022 financial results. The firm provides network intelligence and service assurance software and services to communications service providers. RDCM recently announced a prominent customer win with DISH and expects growth well into 2023. I'm cautiously optimistic about RDCM at around $11.60 per share. A Quick Take On RADCOM RADCOM Ltd. (RDCM) recently reported its Q2 2022 financial results on August 11, 2022, beating expected revenue and EPS estimates. The company provides network intelligence and service assurance software and services to communications service providers. It recently announced a high visibility customer win in DISH’ 5G network launch and raised 2022 revenue guidance for a second time this year. My outlook is a Buy for RDCM at around $11.60 per share on the strength of its prospects in the 5G space. RADCOM Overview Tel Aviv, Israel-based RADCOM Ltd. was founded in 1985 and provides a range of cloud-based, 5G standard-ready network intelligence and service assurance software solutions for communications service providers worldwide. The firm is headed by Chief Executive Officer Eyal Harari, who was previously Software Group Manager at Tvuna. The company’s primary offerings include: Network Visibility Service Assurance Network Insights The firm acquires customers via its direct sales and marketing efforts focused on a wide range of telecom service providers across all market tiers. RADCOM’s Market & Competition According to a 2022 market research report by MarketsAndMarkets, the market for telecom service assurance was an estimated $6.5 billion in 2021 and is forecast to reach $10.4 billion by 2026. This represents a forecast CAGR of 9.9% from 2022 to 2026. The main drivers for this expected growth are demand from communications service providers for products that detect and remediate network performance issues to reduce customer churn. Also, large enterprise providers are expected to hold the largest market share within the vendor universe. Major competitive or other industry participants include: NEC Ericsson Amdocs NETSCOUT Broadcom HPE Accenture Huawei Spirent TEOCO EXFO Infovista SysMech Anodot Matellio Stixis Others RADCOM’s Recent Financial Performance Total revenue by quarter has grown unevenly in the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has plateaued, as the chart shows here: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have fluctuated as follows: 5 Quarter SG&A % Of Revenue (Seeking Alpha) Operating income by quarter has remained negative in the past five quarters: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have remained negative recently as well: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, RDCM’s stock price has risen 9.2% vs. the U.S. S&P 500 index’ fall of around 7.3%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For RADCOM Below is a table of relevant capitalization and valuation figures for the company: Measure [TTM] Amount Enterprise Value / Sales 2.31 Revenue Growth Rate 10.7% Net Income Margin -9.9% GAAP EBITDA % -10.0% Market Capitalization $171,260,000 Enterprise Value $99,580,000 Operating Cash Flow $2,000,000 Earnings Per Share (Fully Diluted) -$0.31 (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. RDCM’s most recent GAAP Rule of 40 calculation was only 0.7% as of Q2 2022, so the firm needs significant improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 10.7% GAAP EBITDA % -10.0% Total 0.7% (Source - Seeking Alpha) Commentary On RADCOM In its last earnings call (Source - Seeking Alpha), covering Q2 2022’s results, management highlighted recent customer wins in the 5G space as well as an extension of a multiyear deal with AT&T. Management believes the ‘5G market is ramping up’, with DISH recently selecting the firm to monitor its 5G smart network launched for the Las Vegas market and expanding to more than 120 U.S. cities, or about 20% of the population. The firm’s previous integration with AWS has enabled the DISH relationship to scale more automatically. Management is seeing increased collaboration between telecom firms and public cloud providers such as AWS. As to its financial results, revenue rose by 14% year-over-year while non-GAAP gross margin was reported as 72%. SG&A increased while gross R&D decreased. GAAP operating income remained negative as did earnings per share. For the balance sheet, the company finished the quarter with cash, equivalents and short-term bank deposits of $73.1 million. The firm has used working capital of $9.1 million in the past 4 quarters. Looking ahead, management doesn’t currently see any negative impact from current global economic changes as network operators seek to migrate their networks to 5G capabilities.

Aug 10

Radcom Q2 2022 Earnings Preview

Radcom (NASDAQ:RDCM) is scheduled to announce Q2 earnings results on Thursday, August 11th, before market open. The consensus EPS Estimate is -$0.01 (+50.0% Y/Y) and the consensus Revenue Estimate is $10.79M (+10.6% Y/Y). Over the last 2 years, RDCM has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.

Shareholder Returns

RDCMUS SoftwareUS Market
7D-6.7%-4.9%-6.9%
1Y-0.4%-34.3%-23.7%

Return vs Industry: RDCM exceeded the US Software industry which returned -35.4% over the past year.

Return vs Market: RDCM exceeded the US Market which returned -23% over the past year.

Price Volatility

Is RDCM's price volatile compared to industry and market?
RDCM volatility
RDCM Average Weekly Movement3.5%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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

Volatility Over Time: RDCM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985278Eyal Hararihttps://www.radcom.com

RADCOM Ltd. provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution, voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service.

RADCOM Ltd. Fundamentals Summary

How do RADCOM's earnings and revenue compare to its market cap?
RDCM fundamental statistics
Market CapUS$159.18m
Earnings (TTM)-US$4.26m
Revenue (TTM)US$43.14m

3.7x

P/S Ratio

-37.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDCM income statement (TTM)
RevenueUS$43.14m
Cost of RevenueUS$12.61m
Gross ProfitUS$30.53m
Other ExpensesUS$34.79m
Earnings-US$4.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.30
Gross Margin70.78%
Net Profit Margin-9.88%
Debt/Equity Ratio0%

How did RDCM perform over the long term?

See historical performance and comparison