Is RCM Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RCM Technologies, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, supported by a P/E ratio of 24, an EV to EBITDA of 13.80, and a strong ROCE of 40.59%. In comparison, Kforce, Inc. has a significantly higher P/E of 49.41, while Kelly Services, Inc. shows a much lower P/E of 5.57, highlighting RCM's relative position within its peer group.
Despite recent stock performance showing a decline over the past month (-16.34%) compared to a slight gain in the S&P 500 (0.96%), the long-term outlook remains positive with a remarkable 5-year return of 1524.64%. This suggests that while short-term volatility exists, the company's fundamentals and valuation metrics indicate it is currently undervalued in the market.