Rcm Technologies (RCMT) AI Stock Analysis

• Market Cap: $164.44M
• Dividend Yield: N/A
• Average Volume (3M): 32.59K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.99
• Revenue Growth: 13.70%
• EPS Growth: -13.35%
• Country: US
• Employees: 4,220
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.42
• Shares Outstanding: 7,410,510
• 10 Day Avg. Volume: 32,327
• 30 Day Avg. Volume: 32,585
• PEG Ratio: -0.90
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 51.08
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 9.72
• 1Y Price Target: $32.00
• Price Target Upside: 42.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $24.50 ▲(9.28% Upside)

Rcm Technologies' overall stock score reflects its solid financial performance and positive future prospects highlighted in the earnings call. While technical indicators suggest caution, the company's reasonable valuation and strong segment growth support a favorable outlook. Attention to profitability margins and cash flow challenges will be crucial for sustained success.

Positive Factors

Engineering Segment Performance

The record backlog in the engineering segment indicates strong demand and future revenue stability, enhancing long-term growth prospects.

Healthcare Growth

Significant growth in the healthcare segment, particularly in school revenue, suggests expanding market presence and client base, supporting sustained revenue growth.

Cash Generation

Robust cash generation capabilities enhance financial flexibility, allowing for reinvestment in growth opportunities and strengthening the balance sheet.

Negative Factors

Excess Medical Costs

Rising medical costs can erode profitability margins, posing a risk to sustained financial performance if not managed effectively.

Cash Flow Challenges

Cash flow challenges due to collection issues can strain operational liquidity, impacting the company's ability to fund operations and growth initiatives.

IT, Life Sciences, and Data Solutions Decline

Declining performance in IT and related sectors may signal competitive pressures or market shifts, potentially affecting overall revenue diversity and growth.

Rcm Technologies Business Overview & Revenue Model

Company Description

RCM Technologies, Inc. (RCMT) is a professional services firm that provides a range of technology and consulting services primarily to the healthcare, engineering, and information technology sectors. The company specializes in delivering tailored solutions that include IT staffing, project management, systems integration, and business process outsourcing. RCM Technologies leverages its expertise to support clients in enhancing operational efficiencies and achieving their strategic objectives.

How the Company Makes Money

RCM Technologies generates revenue primarily through service contracts and consulting engagements. The company earns money by providing IT staffing services, where it charges clients a fee based on the hourly rates of the professionals placed in various projects. Additionally, RCM Technologies derives income from project-based consulting services, which involve fixed-fee or time-and-materials billing arrangements. The company may also benefit from long-term contracts with healthcare and engineering firms, ensuring a stable income stream. Strategic partnerships with technology providers and industry leaders enhance its service offerings and can lead to increased project opportunities, further contributing to its revenue.

Rcm Technologies Financial Statement Overview

Summary

Rcm Technologies demonstrates solid financial performance with steady revenue growth and significant improvement in free cash flow. The company has effectively managed its leverage, enhancing financial stability. However, profitability margins have faced some pressure, which needs attention for sustained success.

Income Statement

Rcm Technologies shows a positive revenue growth rate of 3.31% in the TTM, indicating a steady growth trajectory. The gross profit margin is healthy at 27.51%, although slightly lower than the previous year. The net profit margin has decreased to 4.23%, reflecting some pressure on profitability. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.88 in the TTM, indicating better leverage management compared to the previous year. Return on equity is strong at 35.58%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Rcm Technologies demonstrates a significant improvement in free cash flow growth at 3337.63% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 0.31, suggesting a moderate conversion of income to cash. The free cash flow to net income ratio is high at 0.91, reflecting strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	309.84M	278.38M	263.24M	284.68M	203.88M	150.41M
Gross Profit	85.23M	79.78M	76.70M	82.93M	53.12M	38.85M
EBITDA	24.93M	24.51M	24.81M	29.89M	15.38M	-8.40M
Net Income	13.10M	13.33M	16.83M	20.89M	10.99M	-8.87M
Balance Sheet
Total Assets	129.81M	132.08M	120.48M	87.96M	72.85M	68.34M
Cash, Cash Equivalents and Short-Term Investments	1.31M	4.73M	6.28M	339.00K	235.00K	734.00K
Total Debt	36.45M	42.18M	34.00M	13.76M	18.22M	16.77M
Total Liabilities	88.44M	98.59M	94.69M	56.00M	46.88M	46.10M
Stockholders Equity	41.38M	33.48M	25.79M	31.96M	25.97M	22.24M
Cash Flow
Free Cash Flow	13.61M	3.60M	9.55M	27.55M	347.00K	24.74M
Operating Cash Flow	15.02M	6.17M	12.48M	28.44M	915.00K	25.20M
Investing Cash Flow	-2.38M	-2.57M	-2.54M	-4.98M	6.29M	-419.00K
Financing Cash Flow	-5.16M	-4.83M	-3.85M	-23.13M	-7.55M	-25.63M

Rcm Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCMT, the sentiment is Negative. The current price of 22.42 is below the 20-day moving average (MA) of 22.91, below the 50-day MA of 24.94, and above the 200-day MA of 21.91, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 24.27 is Positive, neither overbought nor oversold. The STOCH value of 36.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCMT.

Rcm Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCMT	70 Outperform	$164.44M	11.73	36.68%	―	13.70%	-13.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MATW	48 Neutral	$708.50M	-10.89	-12.81%	4.35%	-11.13%	-351.71%
TUSK	48 Neutral	$97.35M	―	-24.62%	―	-21.67%	60.44%
NNBR	46 Neutral	$85.33M	―	-24.06%	―	-9.85%	-11.65%

Rcm Technologies Corporate Events

RCM Technologies Reports Strong Revenue Growth in Q3 2025

RCM Technologies, Inc. is a business and technology solutions provider operating in sectors such as Health Care, Engineering, Aerospace & Defense, and Life Sciences, offering services that enhance operational performance through advanced engineering and IT solutions.

RCM Technologies’ Earnings Call: Growth Amid Challenges

RCM Technologies’ recent earnings call painted a picture of robust growth tempered by a few challenges. The company reported strong performances in its Healthcare and Energy Services segments, with a record engineering backlog suggesting promising future prospects. However, issues such as excess medical costs and cash flow challenges slightly dampened the overall positive sentiment.

RCM Technologies’ Earnings Call Highlights Growth and Achievements

RCM Technologies recently held its earnings call, revealing a generally positive sentiment with notable achievements in the Health Care and Aerospace sectors. The company celebrated its inclusion in a major growth index, reflecting its robust growth trajectory. While challenges such as weak operating cash flow and fluctuating engineering margins were acknowledged, the overall tone was optimistic, emphasizing the company’s strong performance and strategic advancements.

RCM Technologies Reports Strong Q2 2025 Growth

RCM Technologies, Inc. is a business and technology solutions provider operating in sectors such as health care, engineering, aerospace, and life sciences, offering services that enhance operational performance through advanced engineering and IT solutions.