RCM Technologies, Inc.
RCM Technologies, Inc. Fundamental Analysis
RCM Technologies, Inc. (RCMT) shows moderate financial fundamentals with a PE ratio of 11.15, profit margin of 4.23%, and ROE of 35.58%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 5.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RCMT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRCMT demonstrates superior asset utilization.
Valuation Score
ExcellentRCMT trades at attractive valuation levels.
Growth Score
ModerateRCMT shows steady but slowing expansion.
Financial Health Score
ExcellentRCMT maintains a strong and stable balance sheet.
Profitability Score
ModerateRCMT maintains healthy but balanced margins.
Key Financial Metrics
Is RCMT Expensive or Cheap?
P/E Ratio
RCMT trades at 11.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RCMT's PEG of -3.97 indicates potential undervaluation.
Price to Book
The market values RCM Technologies, Inc. at 3.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.23 times EBITDA. This is generally considered low.
How Well Does RCMT Make Money?
Net Profit Margin
For every $100 in sales, RCM Technologies, Inc. keeps $4.23 as profit after all expenses.
Operating Margin
Core operations generate 7.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.58 in profit for every $100 of shareholder equity.
ROA
RCM Technologies, Inc. generates $10.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RCM Technologies, Inc. generates limited operating cash flow of $5.73M, signaling weaker underlying cash strength.
Free Cash Flow
RCM Technologies, Inc. generates weak or negative free cash flow of $3.41M, restricting financial flexibility.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
RCMT converts 2.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How RCMT Stacks Against Its Sector Peers
| Metric | RCMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.15 | 26.32 | Better (Cheaper) |
| ROE | 35.58% | 1290.00% | Weak |
| Net Margin | 4.23% | -43768.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 116.05 | Strong (Low Leverage) |
| Current Ratio | 1.98 | 10.65 | Neutral |
| ROA | 10.09% | -1541671.00% (disorted) | Strong |
RCMT outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RCM Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
137.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
434.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
310.22%
Industry Style: Cyclical, Value, Infrastructure
High Growth