Radcom Ltd. Ordinary Shares (RDCM)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

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

At the 2026-10-13 close of $10.22, RADCOM is a $268.1 million market-cap telecom software company selling cloud-native and 5G-ready network intelligence to carriers. The business has a niche: assurance, analytics and visibility for communication service providers. But the numbers show a modest enterprise. FairStock's P/E is 24.33, P/B is 1.47, and the Graham Number is $8.14, so the price carries a negative margin of safety of roughly 25.55%. I like the balance sheet: D/E is only 0.02 and Altman Z-Score is 5.96, suggesting low bankruptcy risk. Yet profitability is thin: ROE is 6.39% and ROCE just 1.56%, well below what I want in a quality compounder. The Piotroski F-Score is 2/9, a weak signal on financial momentum. The latest reported quarter, fiscal Q2 2026, had revenue of $11.8 million but a net loss of $3.1 million, a -26.48% margin, which conflicts with the provided growth figures of 15.94% revenue growth and 62.01% profit growth. The PEG ratio of 0.39 looks tempting, but EV/EBITDA of 73.39 is very rich. With beta 0.74 and no dividend, this is a small, low-debt, potentially cyclical technology supplier. The moat is not obvious; low returns suggest limited pricing power. I would need evidence of sustained positive earnings, rising ROCE, and a price closer to intrinsic value before calling it a value opportunity.

In plain English: RADCOM makes software that telecom carriers use to monitor and analyze their networks, including 5G and cloud systems. The company carries very little debt and has shown growth, but its latest reported quarter was unprofitable and its profitability is weak. At the recent $10.22 close, the stock looks expensive compared with its recent earnings and accounting value.

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

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