Resources Connection, Inc. (RGP) 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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Forrester Research, Inc.

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OmniAb, Inc.

Viad Corp.

Franklin Covey Co.

Resources Connection, Inc.

Tyra Biosciences, Inc.

Why is Resources Connection, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.78% and Operating profit at -178.13% over the last 5 years

With a fall in PBT of -75.28%, the company declared Very Negative results in Nov 25

The company has declared negative results for the last 7 consecutive quarters
INTEREST(9M) At USD 0.04 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at USD 25.12 MM
DIVIDEND PER SHARE(HY) Lowest at USD 4.85

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -45.68%, its profits have fallen by -145.6%
At the current price, the company has a high dividend yield of 7.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -45.68% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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 Miscellaneous)

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

Is Resources Connection, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Resources Connection, Inc.

-46.12%

-1.25

52.04%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.78%

EBIT Growth (5y)

-178.13%

EBIT to Interest (avg)

44.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.94

Tax Ratio

9.42%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.73%

ROE (avg)

11.44%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.62

EV to EBIT

-3.98

EV to EBITDA

36.32

EV to Capital Employed

0.33

EV to Sales

0.07

PEG Ratio

Dividend Yield

7.64%

ROCE (Latest)

-8.32%

ROE (Latest)

-6.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

DEBT-EQUITY RATIO (HY)

Lowest at -33.51 %

-30What is not working for the Company

INTEREST(9M)

At USD 0.04 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at USD 25.12 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 4.85

NET SALES(Q)

Lowest at USD 117.73 MM

OPERATING PROFIT(Q)

Lowest at USD -6.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -5.14 %

PRE-TAX PROFIT(Q)

Lowest at USD -8.58 MM

NET PROFIT(Q)

Lowest at USD -9.29 MM

Here's what is working for Resources Connection, Inc.

Debt-Equity Ratio

Lowest at -33.51 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Resources Connection, Inc.

Interest

At USD 0.04 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD -8.58 MM has Fallen at -915.11%

over average net sales of the previous four periods of USD 1.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -9.29 MM has Fallen at -509.38%

over average net sales of the previous four periods of USD 2.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 25.12 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 117.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 117.73 MM has Fallen at -11.91%

over average net sales of the previous four periods of USD 133.66 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -6.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -5.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -8.58 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 -9.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Dividend per share

Lowest at USD 4.85

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)