Rcm Technologies (RCMT) AI Stock Analysis

• Market Cap: $150.95M
• Dividend Yield: N/A
• Average Volume (3M): 43.95K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.94
• 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: 43,731
• 30 Day Avg. Volume: 43,954
• 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: 1.60
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 2.86
• 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: 71 Outperform
• Price Target: $22.50 ▲(0.36% Upside)

The score is driven primarily by solid financial performance (steady growth, improved leverage, strong ROE) and especially strong free cash flow improvement. Valuation is supportive with a modest P/E. Offsetting these positives are mixed technicals (price below key longer-term moving averages and slightly negative MACD) and earnings-call risks tied to medical cost pressure, some segment weakness, and near-term cash collection issues despite a strong backlog.

Positive Factors

Strong Free Cash Flow

Robust cash generation enhances financial flexibility, allowing RCM Technologies to invest in growth opportunities and manage debt effectively.

Record Engineering Backlog

A strong backlog indicates sustained demand and future revenue stability, particularly in engineering services, supporting long-term growth prospects.

Healthcare Segment Growth

Growth in the healthcare segment, especially in school partnerships, suggests expanding market presence and potential for continued revenue enhancement.

Negative Factors

Excess Medical Costs

Rising medical costs can erode profitability, impacting net margins and potentially limiting resources available for reinvestment and growth.

Cash Flow Challenges

Cash flow challenges due to collection issues can strain operational liquidity, affecting the company's ability to meet short-term obligations and invest in growth.

IT, Life Sciences, and Data Solutions Decline

Declining performance in IT and related sectors may signal competitive pressures or market shifts, potentially impacting overall revenue diversification.

Rcm Technologies Business Overview & Revenue Model

Company Description

Rcm Technologies (RCMT) is a professional services firm that specializes in providing technology and engineering solutions across various sectors including healthcare, telecommunications, and government services. The company offers a range of services such as IT consulting, project management, and staffing solutions, aiming to enhance operational efficiency and technological capabilities for its clients.

How the Company Makes Money

Rcm Technologies generates revenue primarily through consulting services, project-based contracts, and staffing solutions. Its revenue model includes hourly billing for consultants, fixed-price contracts for specific projects, and markups on staffing placements. Key revenue streams are derived from long-term contracts with government agencies and healthcare organizations. Additionally, partnerships with technology providers and industry-specific clients contribute significantly to its earnings by enabling the company to offer specialized services and solutions tailored to client needs.

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	84.69M	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	37.91M	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	3.50M	3.60M	9.55M	27.55M	347.00K	24.74M
Operating Cash Flow	5.88M	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: Positive
• Last Price: 22.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 22.42 is above the 20-day moving average (MA) of 20.29, above the 50-day MA of 20.24, and above the 200-day MA of 22.30, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 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	71 Outperform	$150.95M	11.91	36.68%	―	13.70%	-13.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MATW	55 Neutral	$864.89M	-34.78	-5.33%	3.87%	-16.60%	58.86%
TUSK	55 Neutral	$110.85M	-1.41	-24.62%	―	-21.67%	60.44%
NNBR	50 Neutral	$73.79M	―	-24.06%	―	-9.85%	-11.65%

Rcm Technologies Corporate Events

RCM Technologies Shareholders Back Board, Governance and Pay

On December 18, 2025, RCM Technologies, Inc. held its annual meeting of stockholders, at which investors elected four directors—Bradley S. Vizi, Chigozie O. Amadi, Swarna Srinivas Kakodkar and Jayanth S. Komarneni—to serve until the next annual meeting or until successors are chosen. Shareholders also approved the company’s 2025 Omnibus Equity Compensation Plan, ratified EisnerAmper LLP as independent registered public accounting firm for the fiscal year ending January 3, 2026, endorsed on an advisory basis the 2024 compensation of named executive officers, and recommended that future say-on-pay votes be held annually. The approvals, particularly of the equity compensation plan and executive pay framework, reinforce the board’s authority over capital-based incentive structures and signal continued shareholder support for the company’s governance and compensation practices.

The most recent analyst rating on (RCMT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Rcm Technologies stock, see the RCMT Stock Forecast page.