Rcm Technologies (RCMT) AI Stock Analysis

• Market Cap: $193.11M
• Dividend Yield: N/A
• Average Volume (3M): 72.77K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.75
• Revenue Growth: 8.53%
• EPS Growth: -16.64%
• Country: US
• Employees: 4,220
• Sector: Industrials
• Sector Strength: 94
• Industry: Conglomerates
• EPS (TTM): 0.63
• Shares Outstanding: 7,390,385
• 10 Day Avg. Volume: 60,467
• 30 Day Avg. Volume: 72,773
• PEG Ratio: 4.76
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.81
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 2.07
• 1Y Price Target: $30.00
• Price Target Upside: 14.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $27.00 ▲(3.33%Upside)

Rcm Technologies' strong earnings call performance and technical indicators lead to a robust score. The operational efficiency and reasonable valuation further support the stock's potential, despite some financial leverage concerns. The absence of impactful corporate events did not affect the score.

Positive Factors

Business Expansion

New business pipelines are expanding for all segments, with Specialty Healthcare expected to support significant revenue growth.

Financial Management

Cash improved with lower DSO, indicating better financial management.

Negative Factors

Financial Performance

Adjusted EBITDA was down 30% year over year due to lighter-than-forecast revenue and higher expenses.

Profit Margins

Gross profit was negatively impacted by a lower gross margin in Engineering Services due to a higher mix of lower margin engagements and one-time issues.

Rcm Technologies Business Overview & Revenue Model

Company Description

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences and Information Technology. The Engineering segment offers a range of engineering services, including project management engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, and 3D/BIM integrated design. The Specialty Health Care segment provides long-term and short-term staffing, executive search, and placement services in the fields of allied and therapy staffing, correctional healthcare staffing, health information management, nursing services, physician and advanced practice, school services, and telepractice. The Life Sciences and Information Technology segment provides enterprise business solutions, application services, infrastructure solutions, competitive advantage, life sciences solutions, and other vertical market specific solutions. The company serves aerospace and defense, energy, financial services, health care, life sciences, manufacturing and distribution, and technology industries, as well as educational institutions and the public sector. RCM Technologies, Inc. was founded in 1971 and is based in Pennsauken, New Jersey.

How the Company Makes Money

RCM Technologies makes money through a diversified revenue model that primarily includes fees from engineering services, IT consulting engagements, and healthcare staffing solutions. The engineering segment generates income by providing design and project management services to clients in the energy, aerospace, and defense sectors. Their IT consulting services offer custom software development, system integration, and managed IT services, which contribute to their revenue through consulting fees and long-term service contracts. The healthcare division earns revenue by supplying healthcare professionals to medical facilities, generating income through staffing and placement fees. Strategic partnerships and long-term client relationships play a significant role in sustaining and growing their revenue streams.

Rcm Technologies Financial Statement Overview

Summary

Rcm Technologies demonstrates operational efficiency with strong EBIT and EBITDA margins. However, a decrease in revenue, net income, and stockholders' equity, along with a lack of financial leverage, slightly undermines its overall financial performance.

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

Rcm Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.13
• 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 26.13 is above the 20-day moving average (MA) of 25.13, above the 50-day MA of 23.74, and above the 200-day MA of 20.84, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 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	$193.11M	15.04	42.38%	―	8.53%	-16.64%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
TUSK	52 Neutral	$128.50M	―	-55.95%	―	-12.33%	-738.00%
NNBR	47 Neutral	$107.45M	―	-17.87%	―	-7.16%	28.78%

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.