Is RCM Technologies, Inc. overvalued or undervalued?

As of 7 July 2025, RCM Technologies, Inc. has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company appears to be undervalued, with a P/E ratio of 24, which is notably lower than its peer Kforce, Inc. at 49.41, and an EV to EBITDA ratio of 13.80, also below the industry average. Additionally, RCM Technologies boasts impressive returns on capital and equity, with ROCE at 40.59% and ROE at 37.45%, suggesting strong profitability relative to its equity base.
In terms of peer comparison, RCM Technologies stands out with a valuation grade of attractive, while peers like Kelly Services, Inc. and Cross Country Healthcare, Inc. are rated risky, with P/E ratios of 5.57 and 56.33, respectively. The company's stock has significantly outperformed the S&P 500, with a year-to-date return of 24.05% compared to the S&P 500's 12.22%, reinforcing the notion that RCM Technologies is positioned favorably in the market.