RCM Technologies, Inc.
$23.63
-1.7%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 11.0).
Valuation inputs: P/E 11.0, earnings yield +9.1%, momentum -1.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +35.5%, ROIC +22.8%).
Profitability stack: net margin +5.1%, ROE +35.5%, ROIC +22.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +65.8%, momentum -1.7%, net margin +5.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
RCM Technologies, Inc. Market vs Earnings Trajectory
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RCM Technologies, Inc. Fair Value Envelope
RCM Technologies, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
RCM Technologies, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
RCM Technologies, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
RCM Technologies, Inc. Street Expectations Map
No Target Data
No analyst price targets available for rcmt.
RCM Technologies, Inc. Insider Positioning
During the last 12 months, insiders have sold $4.28M worth of RCMT shares, with no buying activity reported.
3 Months
0
0.00
111.7K
3.37M
-3.4M
-$3.37M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
15.6K
429.00K
-429K
-$429K
9-12 Months
0
0.00
17.5K
480.50K
-480K
-$480K
Top Buyers
No buying activity
Top Sellers
Vizi Bradley
Director, 10 Percent Owner, Officer: Executive Chairman & President
$2.88M
Miller Kevin D
Officer: Cfo
$1.08M
Saks Michael
Officer: Division President, Hc Srvs.
$327K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $4.28M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
rcmt Dividend History
Learning Layer
Related Guides
Build conviction on RCMT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.