RCM (RCMT) (RCMT)
NASDAQ:RCMT
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Rcm Technologies
(NASDAQ:RCMT)
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Rating:50Neutral
Price Target:
$26.00
▲(15.97% Upside)
Action:Reiterated
Date:05/16/26
The score is primarily supported by improved balance-sheet strength and ongoing profitability, but is held back by a steep TTM revenue decline and materially weaker cash flow. Technical indicators also look weak with the stock trading below key moving averages and showing oversold momentum, while valuation support is limited due to missing/invalid P/E and no dividend yield provided.
Positive Factors
Low leverage / improved balance sheet
Material debt reduction and very low debt-to-equity materially improve financial flexibility and reduce interest burden. Over the next several months this supports contract bidding, working-capital needs, and resilience to revenue swings, lowering liquidity and solvency risk for operations.
Negative Factors
Sharp TTM revenue decline
A ~45% year-over-year top-line contraction erodes scale and operating leverage, pressuring fixed-cost coverage and margin sustainability. If the revenue base does not recover, the company faces prolonged margin compression, reduced reinvestment capacity, and tougher client retention dynamics.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / improved balance sheet
Material debt reduction and very low debt-to-equity materially improve financial flexibility and reduce interest burden. Over the next several months this supports contract bidding, working-capital needs, and resilience to revenue swings, lowering liquidity and solvency risk for operations.
Read all positive factors
Rcm Technologies (RCMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$183.85M
Dividend YieldN/A
Average Volume (3M)79.30K
Price to Earnings (P/E)12.4
Beta (1Y)1.20
Revenue Growth9.30%
EPS Growth22.99%
CountryUS
Employees4,220
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)2.10
Shares Outstanding7,087,614
10 Day Avg. Volume67,774
30 Day Avg. Volume79,301
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)3.29
Price to Sales (P/S)0.47
P/FCF Ratio8.71
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit2.52
Enterprise Value/Ebitda8.13
Forecast
1Y Price Target
$36.00Price Target Upside60.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.73
Revenue Forecast (FY)$343.94M
Rcm Technologies Business Overview & Revenue Model
Company Description
RCM Technologies, Inc. delivers business and technology-focused solutions across the United States, Canada, Puerto Rico, and Serbia. The company organizes its operations into three distinct divisions: Engineering, Specialty Health Care, and Life S...
How the Company Makes Money
RCM Technologies primarily makes money by supplying specialized talent and delivering project-based services to client organizations, generating revenue when its professionals work billable hours or when placements are successfully completed. Key ...
Rcm Technologies Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
RCM Technologies reported strong growth in several segments, particularly in Healthcare and Energy Services, with a record engineering backlog indicating positive future prospects. However, challenges such as excess medical costs, cash flow issues, and declines in certain revenue streams slightly tempered the overall positive outlook.Positive Updates
Record 2026 Engineering Backlog
RCM Technologies reported a record engineering backlog for 2026 as of the end of October, highlighting strong future business prospects.
Negative Updates
Excess Medical Costs
RCM faced excess medical costs amounting to approximately $1.8 million year-to-date, with a significant impact in Q3 2025.
Read all updates
Q3-2025 Updates
Positive
Negative
Record 2026 Engineering Backlog
RCM Technologies reported a record engineering backlog for 2026 as of the end of October, highlighting strong future business prospects.
Read all positive updates
Company Guidance
During the call, RCM Technologies highlighted several key metrics reflecting their strong performance and future outlook. The company reported a consolidated gross profit of $19.4 million for Q3 2025, representing an 8.8% increase over the previous year. Adjusted EBITDA was slightly down by 1.4% at $5.5 million compared to the same period in 2024. The healthcare segment showed a gross profit growth of 8.5% and a notable 20.7% increase in school revenue, despite a slow start to the quarter. Engineering services achieved the best gross profit quarter in their history with a 17.3% increase, and a backlog for 2026 over $70 million, significantly higher from the previous year's $21 million. In contrast, the IT, Life Sciences and Data Solutions sector saw a 4.2% decrease in gross profit. Despite challenges with excess medical costs totaling $1.8 million year-to-date, the company remains optimistic, focusing on strategic growth and leveraging AI-driven solutions to enhance market differentiation.Rcm Technologies Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 317.97M | 319.40M | 278.38M | 263.24M | 284.68M | 203.88M |
| Gross Profit | 85.94M | 86.03M | 79.78M | 76.70M | 82.93M | 53.12M |
| EBITDA | 26.63M | 27.83M | 24.51M | 24.81M | 29.89M | 15.38M |
| Net Income | 15.99M | 16.33M | 13.33M | 16.83M | 20.89M | 10.99M |
Balance Sheet | ||||||
| Total Assets | 135.33M | 134.40M | 132.08M | 120.48M | 87.96M | 72.85M |
| Cash, Cash Equivalents and Short-Term Investments | 2.62M | 2.92M | 4.73M | 6.28M | 339.00K | 235.00K |
| Total Debt | 34.54M | 25.90M | 42.18M | 34.00M | 13.76M | 18.22M |
| Total Liabilities | 91.04M | 88.42M | 98.59M | 94.69M | 56.00M | 46.88M |
| Stockholders Equity | 44.28M | 45.97M | 33.48M | 25.79M | 31.96M | 25.97M |
Cash Flow | ||||||
| Free Cash Flow | 3.71M | 17.37M | 3.60M | 9.55M | 27.55M | 347.00K |
| Operating Cash Flow | 4.97M | 18.96M | 6.17M | 12.48M | 28.44M | 915.00K |
| Investing Cash Flow | -1.26M | -1.59M | -2.57M | -2.54M | -4.98M | 6.29M |
| Financing Cash Flow | -5.96M | -19.04M | -4.83M | -3.85M | -23.13M | -7.55M |
Rcm Technologies Technical Analysis
Positive
22.42
Price Trends
27.03
Negative
23.19
Positive
22.83
Positive
Market Momentum
-0.11
Negative
59.37
Neutral
86.70
Negative
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 below the 20-day moving average (MA) of 23.32, below the 50-day MA of 27.03, and below the 200-day MA of 22.83, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 86.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCMT.
Rcm Technologies Risk Analysis
Rcm Technologies disclosed 18 risk factors in its most recent earnings report. Rcm Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rcm Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $148.85M | -2.11 | -27.50% | ― | -69.74% | 63.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $824.68M | 86.11 | 1.89% | 3.87% | -28.90% | ― | |
56 Neutral | $158.32M | -4.15 | -22.42% | ― | -3.08% | -9.56% | |
50 Neutral | $183.85M | 12.39 | 37.76% | ― | 9.30% | 22.99% |
* Industrials Sector Average
RCMT
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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.