Last Updated: 20 Sep 2024
Executive Summary
RCM Technologies Inc. (RCMT) is a provider of business and technology solutions with a market capitalization of $149.83 million. The company's strong fundamentals, including a profit margin of 6.19%, operating margin of 8.41%, and return on assets of 13.3%, indicate its financial strength. However, its recent revenue growth of 0.032% and lack of dividend payments may be areas for improvement. The stock is currently trading at $19.98, below its 52-week high of $32.15.
Company Overview
RCM Technologies offers a range of solutions, including consulting, software development, and managed services. The company serves clients in various industries, such as healthcare, financial services, and government. With headquarters in New Jersey and operations in multiple locations, RCMT has a global presence.
Fundamental Analysis
Revenue: RCMT reported revenue of $270.18 million for the trailing twelve months.
Earnings: The company's diluted EPS for the same period was $2.04, resulting in a trailing PE ratio of 9.63.
Profitability: RCMT's profit margin of 6.19% and operating margin of 8.41% indicate strong profitability.
Return on Equity: The company has a high return on equity of 68.8%, demonstrating its ability to generate returns for shareholders.
Technical Analysis
Trend: The stock is currently in a downtrend, trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at $17.11 and resistance at $32.15.
Momentum: The relative strength index (RSI) is below 50, indicating a lack of momentum.
Short Term Outlook
In the short term, RCMT may continue to face challenges due to its lack of revenue growth and dividend payments. The stock's downtrend and low momentum suggest further downside potential.
Long Term Outlook
If RCMT can improve its revenue growth and profitability, it has the potential for long-term growth. The company's strong fundamentals and global presence provide a solid foundation for future success.
Analyst Recommendations
Two analysts have a "Buy" rating on RCMT, while none have a "Strong Buy" or "Sell" rating. The average analyst target price is $34, implying a potential upside of 65% from the current price.
