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RM plc (GB:RM)
:RM

RM (RM) AI Stock Analysis

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GB

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)

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
45
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
40
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
55
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue166.14M195.19M214.17M210.85M189.00M
Gross Profit66.65M60.19M67.29M70.63M73.97M
EBITDA-1.32M-26.81M-10.73M11.24M16.87M
Net Income-4.74M-29.10M-16.09M4.19M7.63M
Balance Sheet
Total Assets138.50M139.76M202.65M210.82M172.37M
Cash, Cash Equivalents and Short-Term Investments8.20M8.06M1.91M3.56M5.94M
Total Debt74.82M70.14M67.87M42.75M29.47M
Total Liabilities121.39M121.94M142.01M123.32M116.99M
Stockholders Equity17.11M17.83M60.64M87.50M55.38M
Cash Flow
Free Cash Flow3.55M-11.55M-25.99M-3.40M12.64M
Operating Cash Flow8.37M-10.46M-20.79M4.62M21.10M
Investing Cash Flow-4.72M20.85M891.00K-12.59M-3.98M
Financing Cash Flow-8.00M-4.14M20.29M6.03M-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
GBIGP
78
Outperform
£101.42M0.2526.84%64.99%270.77%
GBTRB
70
Outperform
£93.11M16.9310.98%2.99%4.97%3.63%
GBTRB
70
Outperform
£93.11M16.9310.98%2.99%4.97%3.63%
65
Neutral
£59.02M14.8914.55%1.28%26.05%7.09%
GBAOM
64
Neutral
£105.26M0.9511.82%
63
Neutral
£501.37M10.64-8.56%2.51%4.36%-29.71%
GBOMG
51
Neutral
£60.75M99.66-0.90%6.45%-18.13%-151.19%
GBOMG
51
Neutral
£60.75M99.66-0.90%6.45%-18.13%-151.19%
GBRM
46
Neutral
£77.33M-22.14%-14.88%88.86%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RM
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