RCM Technologies, Inc. (RCMT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is RCM Technologies, Inc. ?

High Management Efficiency with a high ROCE of 35.97%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.64

Healthy long term growth as Operating profit has grown by an annual rate 77.04%

The company has declared Negative results for the last 5 consecutive quarters

ROCE(HY) Lowest at 36.68%
INTEREST COVERAGE RATIO(Q) Lowest at 766.61
RAW MATERIAL COST(Y) Grown by 7.11% (YoY)

With ROE of 30.20%, it has a attractive valuation with a 6.27 Price to Book Value

Over the past year, while the stock has generated a return of 18.77%, its profits have fallen by -20.6%

High Institutional Holdings at 53.26%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RCM Technologies, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RCM Technologies, Inc.

-100.0%

-0.10

40.23%

S&P 500

16.08%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.45%

EBIT Growth (5y)

77.04%

EBIT to Interest (avg)

13.64

Debt to EBITDA (avg)

2.80

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

5.23

Tax Ratio

34.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

53.26%

ROCE (avg)

35.97%

ROE (avg)

42.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.27

EV to EBIT

13.11

EV to EBITDA

12.14

EV to Capital Employed

3.96

EV to Sales

0.94

PEG Ratio

Dividend Yield

ROCE (Latest)

30.24%

ROE (Latest)

30.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND EQV(HY)

Highest at USD 6.78 MM

-15What is not working for the Company

ROCE(HY)

Lowest at 36.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 766.61

RAW MATERIAL COST(Y)

Grown by 7.11% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.61 times

OPERATING PROFIT(Q)

Lowest at USD 4.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.37 %

PRE-TAX PROFIT(Q)

Lowest at USD 3.32 MM

NET PROFIT(Q)

Lowest at USD 2.26 MM

EPS(Q)

Lowest at USD 0.3

Here's what is working for RCM Technologies, Inc.

Cash and Eqv

Highest at USD 6.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for RCM Technologies, Inc.

Interest Coverage Ratio

Lowest at 766.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 3.32 MM has Fallen at -33.12%

over average net sales of the previous four periods of USD 4.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 2.26 MM has Fallen at -30.39%

over average net sales of the previous four periods of USD 3.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 4.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 6.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 3.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 2.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.3

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 3.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales