Last Updated: 15 Nov 2024
Executive Summary
RCM Technologies Inc. (RCMT) is a provider of business and technology solutions with a market capitalization of $180 million. The company has a strong financial performance with an EBITDA of $25.4 million and an EPS of $2.04. However, its quarterly earnings growth has declined by 0.239% year-over-year. The stock is currently trading at $22.63, below its 52-week high of $32.15. Analysts have a positive outlook on the stock, with two buy ratings and no sell ratings.
Company Overview
RCM Technologies provides business and technology solutions to various industries in the United States, Canada, Puerto Rico, and Serbia. The company's services include consulting, implementation, and support for enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and other business applications. RCM Technologies also provides managed services, cloud computing, and data analytics.
Fundamental Analysis
RCM Technologies has a strong financial performance with an EBITDA of $25.4 million and an EPS of $2.04. The company's profit margin is 5.77% and its operating margin is 7.26%. RCM Technologies also has a strong return on assets (ROA) of 13.2% and a return on equity (ROE) of 61.1%.
Technical Analysis
The stock price of RCM Technologies is currently trading at $22.63, below its 52-week high of $32.15. The stock has been trending down in recent months and is currently below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for RCM Technologies is mixed. The stock is currently trading below its moving averages and is oversold. However, the company has a strong financial performance and analysts have a positive outlook on the stock. In the short term, the stock could continue to trend down, but it could also rebound if the market conditions improve.
Long Term Outlook
The long-term outlook for RCM Technologies is positive. The company has a strong financial performance and is well-positioned to benefit from the growing demand for business and technology solutions. The company is also expanding its international presence, which could provide additional growth opportunities.
Analyst Recommendations
Analysts have a positive outlook on RCM Technologies. Two analysts have a buy rating on the stock and no analysts have a sell rating. The average analyst target price is $36, which represents a potential upside of 59% from the current price.
