Rcm Technologies (RCMT) AI Stock Analysis

• Market Cap: $200.16M
• Dividend Yield: N/A
• Average Volume (3M): 46.60K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.82
• Revenue Growth: 11.01%
• EPS Growth: -15.44%
• Country: US
• Employees: 4,220
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.69
• Shares Outstanding: 7,410,510
• 10 Day Avg. Volume: 39,898
• 30 Day Avg. Volume: 46,603
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 8.31
• 1Y Price Target: $32.00
• Price Target Upside: 18.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $27.00 ▼(-0.04% Downside)

Rcm Technologies demonstrates strong operational efficiency and positive earnings call highlights, including record-breaking gross profit and inclusion in the Russell 2000 Growth Index. The stock's technical indicators show a stable outlook, while the valuation remains reasonable. However, the lack of financial leverage and cash flow volatility present potential risks.

Positive Factors

Inclusion in Russell 2000 Growth Index

Inclusion in the Russell 2000 Growth Index enhances RCM's market exposure and brand strength, potentially attracting more investors and increasing credibility.

Strong Performance in Health Care Services

The robust growth in the Health Care Services Group, driven by innovation and client satisfaction, indicates a strong competitive position and potential for sustained revenue growth.

Record-Breaking Gross Profit

Achieving record-breaking gross profit reflects operational efficiency and effective cost management, supporting long-term profitability and business stability.

Negative Factors

Challenges in Operating Cash Flow

Weak operating cash flow, despite subsequent collections, highlights cash management challenges that could impact liquidity and operational flexibility.

Volatile Engineering Gross Margins

Volatility in engineering gross margins suggests potential instability in cost management, which could affect profitability and predictability of earnings.

Decline in Non-School Health Care Revenue

A decline in non-school health care revenue indicates challenges in diversifying revenue streams, which may affect overall growth and resilience.

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 shows operational efficiency with strong EBIT and EBITDA margins, despite a decrease in revenue and net income. The balance sheet indicates no leverage, which may limit growth potential, but cash flows remain positive, indicating adequate liquidity management.

Income Statement

Rcm Technologies shows a stable gross profit margin and a positive EBIT margin in the TTM, with a slight decrease in net profit and revenue compared to the previous year. Despite this, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reveals a significant drop in stockholders' equity and no reported debt in the TTM, which indicates a zero debt-to-equity ratio. However, this could reflect a lack of financial leverage, potentially limiting growth. The equity ratio has decreased, impacting financial stability.

Cash Flow

The cash flow statement indicates a decline in free cash flow but a positive operating cash flow to net income ratio. While free cash flow has decreased, the company maintains a positive cash flow from operations, which is crucial for sustaining business operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	290.91M	278.38M	263.24M	284.68M	203.88M	150.41M
Gross Profit	81.39M	79.78M	76.70M	82.93M	53.12M	38.85M
EBITDA	25.20M	24.51M	24.51M	29.53M	6.97M	-9.89M
Net Income	13.56M	13.33M	16.83M	20.89M	10.99M	-8.87M
Balance Sheet
Total Assets	120.99M	132.08M	120.48M	87.96M	72.85M	68.34M
Cash, Cash Equivalents and Short-Term Investments	5.18M	4.73M	6.28M	339.00K	235.00K	734.00K
Total Debt	30.45M	42.18M	34.00M	13.76M	18.22M	16.77M
Total Liabilities	86.39M	98.59M	94.69M	56.00M	46.88M	46.10M
Stockholders Equity	34.60M	33.48M	25.79M	31.96M	25.97M	22.24M
Cash Flow
Free Cash Flow	14.07M	3.60M	9.55M	27.55M	347.00K	24.74M
Operating Cash Flow	16.40M	6.17M	12.48M	28.44M	915.00K	25.20M
Investing Cash Flow	-2.33M	-2.57M	-2.54M	-4.98M	6.29M	-419.00K
Financing Cash Flow	-10.70M	-4.83M	-3.85M	-23.13M	-7.55M	-25.63M

Rcm Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCMT, the sentiment is Positive. The current price of 27.01 is above the 20-day moving average (MA) of 26.98, above the 50-day MA of 25.67, and above the 200-day MA of 21.61, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 39.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCMT.

Rcm Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCMT	67 Neutral	$200.16M	15.29	41.02%	―	11.01%	-15.44%
TUSK	54 Neutral	117.11M	-1.30	-11.91%	―	-19.00%	48.70%
NNBR	53 Neutral	109.15M	-1.92	-23.65%	―	-9.86%	1.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rcm Technologies Corporate Events

RCM Technologies Approves Performance Stock Units Grant

On May 6, 2025, RCM Technologies’ Compensation Committee approved grants of up to 2,904 performance stock units to Michael Saks, Division President of Health Care Services, under the company’s 2014 Omnibus Equity Compensation Plan. The vesting of these units is contingent upon the achievement of specific operating income levels during the performance period from December 29, 2024, to January 3, 2026, with provisions for accelerated vesting in the event of a Change in Control.