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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cass Information Systems, Inc.

Stagwell, Inc.

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Vitru Ltd.

Franklin Covey Co.

Forrester Research, Inc.

International Money Express, Inc.

OmniAb, Inc.

Viad Corp.

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 -4.75% and Operating profit at -35.49% over the last 5 years

The company has declared negative results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 18.9 MM
ROCE(HY) Lowest at -61.29%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Risky - Market Cap of less than 100 cr

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -43.93%, its profits have fallen by -6.3%
At the current price, the company has a high dividend yield of 827.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -43.93% 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.

-42.28%

-1.15

47.82%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.75%

EBIT Growth (5y)

-35.49%

EBIT to Interest (avg)

44.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.81

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

Industry P/E

Price to Book Value

0.61

EV to EBIT

9.14

EV to EBITDA

5.38

EV to Capital Employed

0.49

EV to Sales

0.18

PEG Ratio

Dividend Yield

827.15%

ROCE (Latest)

5.34%

ROE (Latest)

8.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At USD 6.07 MM has Grown at 93.99%

RAW MATERIAL COST(Y)

Fallen by 0.05% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -29.38 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.94 times

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 18.9 MM

ROCE(HY)

Lowest at -61.29%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at USD 4.94

NET PROFIT(Q)

Lowest at USD -1.91 MM

EPS(Q)

Lowest at USD -2.23

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

Pre-Tax Profit

At USD 6.07 MM has Grown at 93.99%

over average net sales of the previous four periods of USD 3.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at -29.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.05% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Net Profit

At USD -1.91 MM has Fallen at -132.19%

over average net sales of the previous four periods of USD 5.92 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 18.9 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 Profit

Lowest at USD -1.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -2.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Dividend per share

Lowest at USD 4.94

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)