RADCOM Ltd.
RADCOM Ltd. Fundamental Analysis
RADCOM Ltd. (RDCM) shows moderate financial fundamentals with a PE ratio of 16.62, profit margin of 16.77%, and ROE of 11.24%. The company generates $0.1B in annual revenue with strong year-over-year growth of 18.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RDCM's fundamental strength across five key dimensions:
Efficiency Score
WeakRDCM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRDCM trades at attractive valuation levels.
Growth Score
ExcellentRDCM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRDCM maintains a strong and stable balance sheet.
Profitability Score
WeakRDCM struggles to sustain strong margins.
Key Financial Metrics
Is RDCM Expensive or Cheap?
P/E Ratio
RDCM trades at 16.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RDCM's PEG of 1.35 indicates fair valuation.
Price to Book
The market values RADCOM Ltd. at 1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.38 times EBITDA. This signals the market has high growth expectations.
How Well Does RDCM Make Money?
Net Profit Margin
For every $100 in sales, RADCOM Ltd. keeps $16.77 as profit after all expenses.
Operating Margin
Core operations generate 11.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.24 in profit for every $100 of shareholder equity.
ROA
RADCOM Ltd. generates $8.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RADCOM Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
RADCOM Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RDCM converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How RDCM Stacks Against Its Sector Peers
| Metric | RDCM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.62 | 21.66 | Better (Cheaper) |
| ROE | 11.24% | 1190.00% | Weak |
| Net Margin | 16.77% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 5.75 | 1.59 | Strong Liquidity |
| ROA | 8.27% | -202359.00% (disorted) | Weak |
RDCM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RADCOM Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.16%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
186.73%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
41.58%
Industry Style: Growth, Technology, Streaming
High Growth