RM plc (GB:RM)
LSE:RM
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RM
(LSE:RM)
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Select Model
Rating:47Neutral
Price Target:
96.00 p
▼(-15.79% Downside)
Action:ReiteratedDate:03/07/26
The score is held back primarily by weak cash-flow quality despite an earnings rebound, alongside a weak technical trend (below major moving averages with negative MACD). A high P/E with no dividend yield provided further reduces support, while balance-sheet deleveraging is the main offsetting positive.
Positive Factors
Return to Profitability
A clear earnings rebound to positive EBIT and net income in FY2025 demonstrates the business can generate operating profits. Sustained profitability supports reinvestment in product development, reduces reliance on external capital, and improves long-term viability if maintained.
Negative Factors
Weak Cash Generation
Free cash flow collapsed and operating cash flow remains modest, with a mixed history including prior negative cash years. Persistent weak cash conversion limits capacity to fund growth, pay down liabilities, or smooth operations without external financing, raising structural risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to Profitability
A clear earnings rebound to positive EBIT and net income in FY2025 demonstrates the business can generate operating profits. Sustained profitability supports reinvestment in product development, reduces reliance on external capital, and improves long-term viability if maintained.
Read all positive factors
RM (RM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£91.10M
Dividend YieldN/A
Average Volume (3M)106.44K
Price to Earnings (P/E)42.8
Beta (1Y)-0.17
Revenue Growth-14.23%
EPS Growth97.27%
CountryUK
Employees1,644
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.07
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 supplies products, services, and solutions to educational markets in the United Kingdom and internationally. The company operates through three divisions: RM Resources, RM Assessment, and RM Technology. The RM Resources division offers teac...
How the Company Makes Money
RM generates revenue through several key streams, including the sale of educational software, digital learning resources, and consultancy services for schools and educational institutions. The company's primary revenue model is based on subscripti...
RM Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 162.07M | 166.14M | 195.19M | 214.17M | 206.15M |
| Gross Profit | 61.63M | 66.65M | 60.19M | 61.06M | 59.04M |
| EBITDA | 9.72M | -1.32M | 26.80M | -10.73M | 11.24M |
| Net Income | 2.19M | -4.74M | -29.10M | -14.50M | 4.19M |
Balance Sheet | |||||
| Total Assets | 145.11M | 138.50M | 139.76M | 202.65M | 210.82M |
| Cash, Cash Equivalents and Short-Term Investments | 6.17M | 8.20M | 8.06M | 1.91M | 3.56M |
| Total Debt | 72.11M | 74.82M | 70.14M | 67.87M | 42.75M |
| Total Liabilities | 114.19M | 121.39M | 121.94M | 142.01M | 123.32M |
| Stockholders Equity | 30.93M | 17.11M | 17.83M | 60.64M | 86.97M |
Cash Flow | |||||
| Free Cash Flow | 1.10M | 3.55M | -11.55M | -25.99M | -3.40M |
| Operating Cash Flow | 2.09M | 8.37M | -10.46M | -20.79M | 4.62M |
| Investing Cash Flow | -9.74M | -4.72M | 20.85M | 891.00K | -12.59M |
| Financing Cash Flow | 10.19M | -8.00M | -4.14M | 20.29M | 6.03M |
RM Technical Analysis
Neutral
114.00
Price Trends
98.15
Negative
104.61
Negative
102.82
Negative
Market Momentum
-1.40
Negative
49.53
Neutral
55.29
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 114 is above the 20-day moving average (MA) of 93.75, above the 50-day MA of 98.15, and above the 200-day MA of 102.82, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 55.29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £436.47M | 71.10 | 1.53% | 1.73% | -0.18% | 11.49% | |
70 Outperform | £113.45M | 16.12 | 15.55% | 1.71% | 3.48% | 318.89% | |
69 Neutral | £45.25M | 18.48 | 17.72% | 0.77% | 14.64% | 916.67% | |
68 Neutral | £184.24M | 37.63 | 5.22% | 0.80% | 22.80% | -32.13% | |
65 Neutral | £321.01M | 52.26 | 7.57% | 1.04% | 10.93% | 12.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | £91.10M | 42.76 | 10.33% | ― | -14.23% | 97.27% |
* Technology Sector Average
GB:RM
RM
94.00
-12.00
-11.32%
GB:GBG
GB Group plc
187.60
-56.93
-23.28%
GB:IDOX
Idox plc
70.40
18.40
35.38%
GB:NET
Netcall
108.00
3.89
3.74%
GB:TRB
Tribal Group plc
53.00
14.25
36.76%
GB:SKL
Skillcast Group Plc
50.50
14.89
41.80%
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.