RM (RM) AI Stock Analysis

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RM

(LSE:RM)

Rating:46Neutral

Price Target:

92.00p

▼(-2.13%Downside)

The most significant factor impacting RM's overall stock score is its financial performance, which faces challenges due to declining revenues, high leverage, and fluctuating cash flows. Technical analysis also points to a bearish trend with negative momentum indicators. The valuation is further weakened by the negative P/E ratio. These factors collectively result in a low stock score.

RM (RM) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap

£77.33M

Dividend YieldN/A

Average Volume (3M)1.00M

Price to Earnings (P/E)―

Beta (1Y)-0.10

Revenue Growth-14.88%

EPS Growth88.86%

CountryUK

Employees1,644

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.03

Shares Outstanding83,875,015

10 Day Avg. Volume2,528,093

30 Day Avg. Volume1,004,703

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.63

Price to Sales (P/S)0.00

P/FCF Ratio-1.47

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

RM Business Overview & Revenue Model

Company Descriptionnull

How the Company Makes Moneynull

RM Financial Statement Overview

Summary

RM is facing significant financial challenges with declining revenues and profitability, high leverage, and fluctuating cash flows. The company must focus on improving operational efficiency and reducing debt to stabilize its financial position. While there are signs of improvement in cash flow, overall financial health remains a concern.

Income Statement

Neutral

RM has experienced declining revenue and profitability over recent periods. The gross profit margin has decreased from 41.0% in 2019 to 40.1% in 2024. Additionally, the company reported negative EBIT and EBITDA margins in 2024, indicating operational inefficiencies. Revenue growth has been negative, falling from 2023 to 2024 by 14.9%. Despite these challenges, there was a slight improvement in gross profit margin from 2023 to 2024, suggesting some cost management efforts.

Balance Sheet

Negative

The balance sheet reveals a concerning financial structure with high leverage. The debt-to-equity ratio increased significantly from 0.34 in 2020 to 4.37 in 2024, indicating high reliance on debt financing. Stockholders' equity has declined, reducing the equity ratio from 31.7% in 2020 to 12.3% in 2024. The negative return on equity in 2024 further highlights profitability challenges. These factors present a risk of financial instability.

Cash Flow

Neutral

Cash flow performance shows some positive aspects, such as the return to positive operating cash flow in 2024. The free cash flow also turned positive in 2024, driven by reduced capital expenditures and improved cash management. However, the free cash flow growth rate over recent years has been volatile, and 2023 saw a negative free cash flow, indicating past cash management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.14M	195.19M	214.17M	210.85M	189.00M
Gross Profit	66.65M	60.19M	67.29M	70.63M	73.97M
EBITDA	-1.32M	-26.81M	-10.73M	11.24M	16.87M
Net Income	-4.74M	-29.10M	-16.09M	4.19M	7.63M
Balance Sheet
Total Assets	138.50M	139.76M	202.65M	210.82M	172.37M
Cash, Cash Equivalents and Short-Term Investments	8.20M	8.06M	1.91M	3.56M	5.94M
Total Debt	74.82M	70.14M	67.87M	42.75M	29.47M
Total Liabilities	121.39M	121.94M	142.01M	123.32M	116.99M
Stockholders Equity	17.11M	17.83M	60.64M	87.50M	55.38M
Cash Flow
Free Cash Flow	3.55M	-11.55M	-25.99M	-3.40M	12.64M
Operating Cash Flow	8.37M	-10.46M	-20.79M	4.62M	21.10M
Investing Cash Flow	-4.72M	20.85M	891.00K	-12.59M	-3.98M
Financing Cash Flow	-8.00M	-4.14M	20.29M	6.03M	-15.25M

RM Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price94.00

Price Trends

50DMA

98.05

Negative

100DMA

101.22

Negative

200DMA

96.12

Negative

Market Momentum

MACD

-4.05

Positive

RSI

49.83

Neutral

STOCH

50.92

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RM, the sentiment is Neutral. The current price of 94 is below the 20-day moving average (MA) of 96.17, below the 50-day MA of 98.05, and below the 200-day MA of 96.12, indicating a bearish trend. The MACD of -4.05 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RM.

RM Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGP	78 Outperform	£101.42M	0.25	26.84%	―	64.99%	270.77%
TRB	70 Outperform	£93.11M	16.93	10.98%	2.99%	4.97%	3.63%
TRB	70 Outperform	£93.11M	16.93	10.98%	2.99%	4.97%	3.63%
CLBS	65 Neutral	£59.02M	14.89	14.55%	1.28%	26.05%	7.09%
AOM	64 Neutral	£105.26M	0.95	11.82%	―	―	―
Sector *	63 Neutral	£501.37M	10.64	-8.56%	2.51%	4.36%	-29.71%
OMG	51 Neutral	£60.75M	99.66	-0.90%	6.45%	-18.13%	-151.19%
OMG	51 Neutral	£60.75M	99.66	-0.90%	6.45%	-18.13%	-151.19%
RM	46 Neutral	£77.33M	―	-22.14%	―	-14.88%	88.86%

* Technology Sector Average

Performance Comparison

GB:RM

0.94

0.10

11.90%

GB:OMG

Oxford Metrics

0.50

-0.42

-45.65%

GB:OMG

Oxford Metrics

0.50

-0.42

-45.65%

GB:TRB

Tribal Group plc

0.44

-0.14

-24.14%

GB:TRB

Tribal Group plc

0.44

-0.14

-24.14%

GB:CLBS

D4t4 Solutions

1.48

-0.99

-40.08%

GB:IGP

Intercede

1.74

0.20

12.99%

GB:AOM

ActiveOps plc

1.48

0.36

32.14%

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.Date of analysis: Jul 05, 2025