Want to see GB:RM full AI Analyst Report?
Top Page
RM
(LSE:RM)
Select Model
Select Model
Rating:53Neutral
Price Target:
97.00 p
▲(2.11% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weak and volatile cash flow despite an FY2025 earnings rebound. A significantly improved balance sheet supports the outlook, but technicals are broadly neutral and the valuation (P/E ~22.7) does not look compelling enough to offset execution and cash-conversion risk.
Positive Factors
Leverage reduction
Material deleveraging materially strengthens financial flexibility and lowers default and refinancing risk over the medium term. With much lower interest and principal pressure, management has room to reinvest in product, sustain operations through cycles, and pursue strategic options without immediate liquidity strain.
Negative Factors
Weak cash generation
Severely diminished cash conversion leaves limited internal funding for growth, capex, or sustained debt reduction. Free cash flow covering only part of earnings and a history of negative cash flow in prior years increases reliance on external financing and makes execution riskier over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage reduction
Material deleveraging materially strengthens financial flexibility and lowers default and refinancing risk over the medium term. With much lower interest and principal pressure, management has room to reinvest in product, sustain operations through cycles, and pursue strategic options without immediate liquidity strain.
Read all positive factors
RM (RM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£98.37M
Dividend YieldN/A
Average Volume (3M)106.44K
Price to Earnings (P/E)22.7
Beta (1Y)-0.14
Revenue Growth-0.74%
EPS GrowthN/A
CountryUK
Employees1,543
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
Shares Outstanding98,085,540
10 Day Avg. Volume250,725
30 Day Avg. Volume106,442
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)3.03
Price to Sales (P/S)0.58
P/FCF Ratio85.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)£163.10M
RM Business Overview & Revenue Model
Company Description
RM Plc is an investment holding company, which engages in the provision of technology and resources to the education sector. It operates through the following segments: RM TTS (RM Technical Teaching Solutions) RM Assessment, and RM Technology. The...
How the Company Makes Money
null...
RM Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.00M | 162.07M | 166.14M | 195.19M | 214.17M | 206.15M |
| Gross Profit | 59.05M | 61.63M | 116.86M | 60.19M | 57.94M | 58.98M |
| EBITDA | 15.50M | 11.78M | -1.32M | 26.80M | -13.86M | 11.24M |
| Net Income | 3.49M | 2.19M | -4.74M | -29.10M | -14.50M | 4.19M |
Balance Sheet | ||||||
| Total Assets | 156.29M | 145.11M | 138.50M | 139.76M | 202.65M | 210.82M |
| Cash, Cash Equivalents and Short-Term Investments | 4.91M | 6.17M | 8.20M | 8.06M | 1.91M | 3.56M |
| Total Debt | 79.35M | 72.11M | 74.82M | 70.14M | 67.87M | 42.75M |
| Total Liabilities | 124.39M | 114.19M | 121.39M | 121.94M | 142.01M | 123.32M |
| Stockholders Equity | 31.90M | 30.93M | 17.11M | 17.83M | 60.64M | 86.97M |
Cash Flow | ||||||
| Free Cash Flow | 86.00K | 1.10M | 3.55M | -11.55M | -25.99M | -3.40M |
| Operating Cash Flow | 1.14M | 2.09M | 8.37M | -10.46M | -20.79M | 4.62M |
| Investing Cash Flow | -9.75M | -9.74M | -4.72M | 20.85M | 891.00K | -12.59M |
| Financing Cash Flow | 6.18M | 10.19M | -8.00M | -4.14M | 20.29M | 6.03M |
RM Technical Analysis
Positive
95.00
Price Trends
96.57
Positive
96.94
Positive
102.23
Negative
Market Momentum
1.09
Negative
54.44
Neutral
35.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RM, the sentiment is Positive. The current price of 95 is above the 20-day moving average (MA) of 94.99, below the 50-day MA of 96.57, and below the 200-day MA of 102.23, indicating a neutral trend. The MACD of 1.09 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RM.
RM Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £134.85M | 15.11 | 15.55% | 5.48% | 2.78% | 62.26% | |
68 Neutral | £201.30M | 82.52 | 5.22% | 0.80% | 19.00% | -53.85% | |
66 Neutral | £39.48M | 30.34 | 19.30% | 1.38% | 15.92% | 154.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £505.27M | -6.86 | -14.39% | 2.13% | 0.82% | -997.08% | |
53 Neutral | £98.37M | 22.66 | 11.11% | ― | -0.74% | ― |
* Technology Sector Average
GB:RM
RM
98.00
-6.00
-5.77%
GB:GBG
GB Group plc
237.50
20.26
9.33%
GB:NET
Netcall
118.00
-0.49
-0.41%
GB:TRB
Tribal Group plc
63.00
10.47
19.92%
GB:SKL
Skillcast Group Plc
44.00
-11.80
-21.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.