Rcm Technologies Stock Intrinsic Value – RCM TECHNOLOGIES Reports Third Quarter Fiscal Year 2023 Earnings Results
December 4, 2023
🌥️Earnings Overview
On November 8 2023, RCM TECHNOLOGIES ($NASDAQ:RCMT) released their earnings report for the third quarter of the fiscal year 2023, which ended on September 30 2023. The total revenue amounted to USD 58.0 million, a slight decrease of 0.2% year over year. However, the net income rose 6.8%, amounting to USD 3.8 million when compared to the same quarter of the previous year.
Price History
The company’s stock opened at $19.2 and closed at 19.1, up by 0.5% from the previous closing price of $19.0. This was despite the company’s slightly disappointing earnings results. The company attributed the decrease in earnings to higher operating costs, which included an increase in marketing and research expenses.
Additionally, RCM TECHNOLOGIES experienced higher-than-expected losses in foreign currency exchange rates. Despite these setbacks, the company remains optimistic that it will continue to grow its revenue and profits in the upcoming quarters. RCM TECHNOLOGIES is confident that its long-term strategy will enable it to achieve its goals and maximize shareholder value. It has already invested heavily in research and development, which is expected to result in new products and services that will drive future growth. The company has also taken steps to increase its global presence, which is expected to bring in additional customers and increase revenue. Overall, RCM TECHNOLOGIES remains committed to its efforts to expand operations and develop new products and services that will strengthen its market position in the near future. With its strong third quarter performance, the company is well-positioned to continue growing profits and delivering value to shareholders. 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 |
| 262.43 | 16.41 | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rcm Technologies. More…
| Operations | Investing | Financing |
| 35.09 | -4.85 | -30.22 |
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 |
| 101.21 | 79.83 | 2.72 |
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 |
| 18.5% | 158.2% | 8.5% |
| FCF Margin | ROE | ROA |
| 13.0% | 67.4% | 13.8% |
Analysis – Rcm Technologies Stock Intrinsic Value
At GoodWhale, we recently analysed the fundamentals of RCM TECHNOLOGIES. Our proprietary Valuation Line arrived at a fair value of $14.9 for the stock. However, currently the stock is trading at $19.1, representing an overvaluation of 28.5%. This indicates that RCM TECHNOLOGIES stock may not be a good buy at the moment, but rather investors might be better off waiting for the share price to drop closer to its fair value. More…
Peers
The company has a strong presence in North America, Europe, and Asia. RCM Technologies Inc’s competitors include Jangho Group Co Ltd, Calian Group Ltd, and Peoplein Ltd.
– Jangho Group Co Ltd ($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 of RCM TECHNOLOGIES should be encouraged by the company’s third quarter fiscal year 2023 earnings results, reported on November 8 2023. Total revenue was stable compared to the same period last year, coming in at USD 58.0 million. Net income was up 6.8%, to USD 3.8 million.
This suggests that RCM TECHNOLOGIES is well-positioned to remain financially viable and continue to deliver returns to shareholders. With a stable revenue base and increasing net income, they are well-positioned for continued success.
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