NasdaqCM:RDCM

Stock Analysis Report

Executive Summary

RADCOM Ltd. provides service assurance and customer experience management solutions for communication service providers (CSPs).

Rewards

Revenue is forecast to grow 11.24% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RDCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

RDCM

3.3%

US Communications

0.8%

US Market


1 Year Return

14.7%

RDCM

-0.6%

US Communications

22.0%

US Market

Return vs Industry: RDCM exceeded the US Communications industry which returned -0.6% over the past year.

Return vs Market: RDCM underperformed the US Market which returned 22% over the past year.


Shareholder returns

RDCMIndustryMarket
7 Day-4.3%3.3%0.8%
30 Day-5.7%0.3%1.7%
90 Day2.3%-7.9%5.2%
1 Year14.7%14.7%1.8%-0.6%24.7%22.0%
3 Year-48.5%-48.5%40.3%31.3%46.9%37.3%
5 Year-11.5%-11.5%63.5%45.1%65.5%47.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RDCM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RDCM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RDCM is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: RDCM 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 RDCM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDCM is good value based on its PB Ratio (1.7x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RDCM's revenue (11.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: RDCM's revenue (11.2% 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 RDCM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RADCOM performed over the past 5 years?

-42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDCM is currently unprofitable.

Growing Profit Margin: RDCM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDCM is unprofitable, and losses have increased over the past 5 years at a rate of -42% per year.

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

Earnings vs Industry: RDCM is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (34.1%).


Return on Equity

High ROE: RDCM has a negative Return on Equity (-13.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RADCOM's financial position?


Financial Position Analysis

Short Term Liabilities: RDCM's short term assets ($84.4M) exceed its short term liabilities ($13.1M).

Long Term Liabilities: RDCM's short term assets ($84.4M) exceed its long term liabilities ($10.0M).


Debt to Equity History and Analysis

Debt Level: RDCM is debt free.

Reducing Debt: RDCM had no debt 5 years ago.


Balance Sheet

Inventory Level: RDCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: RDCM's debt is covered by short term assets (assets are 9.4988797440591E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RDCM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RDCM has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -43.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RDCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RDCM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDCM'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 RDCM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Yaron Ravkaie (50yo)

3.9yrs

Tenure

US$556,567

Compensation

Mr. Yaron Ravkaie has been Chief Executive Officer of Radcom Ltd. since January 16, 2016. Mr. Ravkaie served as the Chief Business Officer at RR Media Ltd. (alternate name RRSat Global Communications Netwo ...


CEO Compensation Analysis

Compensation vs Market: Yaron's total compensation ($USD556.57K) is about average for companies of similar size in the US market ($USD528.59K).

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


Management Age and Tenure

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: RDCM's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

0.4yrs

Average Tenure

68yo

Average Age

Experienced Board: RDCM's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Zohar Zisapel (70yo)

    Co-Founder & Director

    • Tenure: 0yrs
  • Miki Shilinger (64yo)

    Vice President of Operations

    • Tenure: 20.5yrs
  • Yehuda Zisapel (77yo)

    Co-Founder

    • Tenure: 0yrs
  • Amir Hai (52yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Heli Bennun (66yo)

    Executive Chairman of Board of Directors

    • Tenure: 4.3yrs
    • Compensation: US$228.96k
  • Rami Amit (53yo)

    CTO & Head of Product

    • Tenure: 2.8yrs
    • Compensation: US$506.50k
  • Eyal Harari (43yo)

    Chief Executive Officer of RADCOM US

    • Tenure: 3yrs
    • Compensation: US$493.39k
  • Ronen Hovav (47yo)

    Director of Sales

    • Tenure: 0yrs
    • Compensation: US$323.98k
  • Yaron Ravkaie (50yo)

    Chief Executive Officer

    • Tenure: 3.9yrs
    • Compensation: US$556.57k
  • Hilik Itman (46yo)

    Vice President of Research & Development

    • Tenure: 5.9yrs
    • Compensation: US$498.86k

Board Members

  • Zohar Zisapel (70yo)

    Co-Founder & Director

    • Tenure: 0yrs
  • Matty Karp (70yo)

    Independent Director

    • Tenure: 10yrs
  • Oren Most (68yo)

    Director

    • Tenure: 0.4yrs
  • Rami Schwartz (61yo)

    Director

    • Tenure: 0.4yrs
  • Heli Bennun (66yo)

    Executive Chairman of Board of Directors

    • Tenure: 4.3yrs
    • Compensation: US$228.96k
  • Mirella Kuvent

    Director

    • Tenure: 0.4yrs

Company Information

RADCOM Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RADCOM Ltd.
  • Ticker: RDCM
  • Exchange: NasdaqCM
  • Founded: 1985
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$129.544m
  • Shares outstanding: 13.74m
  • Website: https://www.radcom.com

Number of Employees


Location

  • RADCOM Ltd.
  • 24 Raoul Wallenberg Street
  • Tel Aviv
  • 69719
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDCMNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDSep 1997
RAMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1997

Biography

RADCOM Ltd. provides service assurance and customer experience management solutions for communication service providers (CSPs). Its carrier-grade solutions support mobile and fixed networks, and scale to t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:48
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.