RCM TECHNOLOGIES Reports Q2 Earnings Results for FY2023
August 26, 2023
🌥️Earnings Overview
On August 9, 2023, RCM TECHNOLOGIES ($NASDAQ:RCMT) reported their financial results for the second quarter of FY2023, which ended on June 30, 2023. Total revenue was USD 67.0 million, a decrease of 9.8% year over year. Net income was USD 4.0 million, a 33.8% decrease compared to the same period in the prior year.
Price History
RCM TECHNOLOGIES reported its second quarter earnings results for fiscal year 2023 on Wednesday. At the start of the day, the stock opened at $19.9 and closed at $19.3, representing a decrease of 2.4% from the prior closing price of 19.8. Overall, the company’s earnings results were strong and in-line with analyst expectations. Despite the stock’s dip on Wednesday, investors remain optimistic about RCM TECHNOLOGIES’ long-term growth prospects and ability to continue to deliver strong financial performance throughout the remainder of 2023 and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rcm Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 262.53 | 16.18 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rcm Technologies. More…
| Operations | Investing | Financing |
| 24.04 | -4.93 | -21.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rcm Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 105.54 | 85.36 | 2.54 |
Key Ratios Snapshot
Some of the financial key ratios for Rcm Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.4% | 117.4% | 8.7% |
| FCF Margin | ROE | ROA |
| 8.8% | 58.8% | 13.6% |
Analysis
GoodWhale has conducted an analysis of RCM TECHNOLOGIES‘s wellbeing and the results are promising. According to Star Chart, RCM TECHNOLOGIES is strong in profitability, medium in asset, growth and weak in dividend. Based on this data, we have classified RCM TECHNOLOGIES as ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Given these results, we believe that RCM TECHNOLOGIES would be an attractive investment for value investors, who are looking for companies that are capable of sustaining future operations during times of crisis. This is evidenced by its high health score of 7/10 with regard to its cashflows and debt. With RCM TECHNOLOGIES’s strong profitability and moderate growth, we believe it represents a good opportunity for value investors. More…
Peers
The company has a strong presence in North America, Europe, and Asia. RCM Technologies Inc’s competitors include Jangho Group Co Ltd, Calian Group Ltd, and Peoplein Ltd.
– Jangho Group Co Ltd ($SHSE:601886)
JHG is a leading investment company with a focus on the healthcare sector. The company has a market capitalization of 8.92 billion as of 2022 and a return on equity of -9.2%. JHG has a diversified portfolio of healthcare investments, including hospitals, clinics, and nursing homes. The company also has a significant presence in the pharmaceutical and biotechnology industries.
– Calian Group Ltd ($TSX:CGY)
Calian Group Ltd is a Canadian professional services company with over 30 years of experience in the provision of health, training, and technology solutions. The company has a market cap of 648.65M as of 2022 and a Return on Equity of 4.41%. Calian employs over 2,600 people in Canada, the United States, and the United Kingdom. The company’s health solutions include primary care, health promotion, and disease prevention services. Calian’s training solutions include online and classroom training, as well as simulation-based training. The company’s technology solutions include systems engineering, software development, and network integration services.
– Peoplein Ltd ($ASX:PPE)
As of 2022, Peoplein Ltd has a market cap of 310.55M and a Return on Equity of 13.79%. The company is a provider of human resources solutions and services.
Summary
Investors may find RCM TECHNOLOGIES‘ Q2 FY2023 earnings results lacklustre. The company reported total revenue of USD 67.0 million, a year-over-year decrease of 9.8%, and net income of USD 4.0 million, a 33.8% drop. This could be indicative of a challenging business environment, and could be cause for concern for potential investors looking to buy in to the company. Investors should conduct further research to understand if there are any underlying factors that could explain the performance decline, or if other areas of the business are strong and could offset the weaker earnings results.
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