RCM Technologies Inc. Common Stock (RCMT)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach RCM as a service business, not a glamorous compounder. It provides engineering, specialty health care, and life-sciences/data solutions, with 4,930 employees. The latest filed quarter, fiscal Q2 2026 ended 2026-07-04, showed revenue of $93.8 million, net income of $4.9 million, and diluted EPS of $0.68, versus revenue of $78.2 million, net income of $3.8 million, and diluted EPS of $0.50 in fiscal Q2 2025 ended 2025-06-28. That is real improvement. For fiscal year 2025 ended 2026-01-03, revenue was $319.4 million, net income $16.3 million, and diluted EPS $2.14; fiscal year 2024 ended 2024-12-28 had revenue $278.4 million, net income $13.3 million, and diluted EPS $1.68. But fiscal year 2023 ended 2023-12-30 still showed net income of $16.8 million on revenue of $263.2 million, so profitability has not marched steadily upward with sales. FairStock calls it a stalwart, with profit growing 10.4% a year and revenue 11.9% over four years. The balance sheet looks acceptable: debt-to-equity of 0.60, a FairStock-calculated Altman Z-Score of 3.54, and Piotroski F-Score of 7/9. Returns are good, with FairStock ROE of 39.51% and ROCE of 11.96%, and trailing free cash flow of $22.8 million gives an 8.0% FCF yield. The moat, however, is modest; these are people and contract-dependent services. At the 2026-10-13 close of $40.11, FairStock calculates P/E 17.44, P/B 5.82, PEG 0.15, and a Graham Number of $18.88, implying a negative margin of safety of 112.45%. The price is not Graham-cheap. I would need durable growth and cash conversion to justify it.

In plain English: RCM Technologies sells engineering, health-care, and data/technology services to other organizations. The latest quarter showed more sales and profit than a year earlier, and the company carries manageable debt and generates cash. But at $40.11, the stock looks expensive compared with the company's accounting value and a strict value check, even though ordinary profit measures look more reasonable. Overall: a decent business with a price that already assumes continued progress.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2026-01-03) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K/A (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer