Resources Connection Inc. Common Stock (RGP)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

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

At the close on 2026-10-13, the shares were $2.73, giving a $94.7M market cap. FairStock's price-based numbers — a P/E of -2.26, P/B of 0.55, and FCF yield of 0.7% — tell me the market is pricing this as a damaged business. The filed record supports that: in FY2024, the period ended 2024-05-25, Resources Connection earned $21.0M, or $0.62 per diluted share. In FY2025, the period ended 2025-05-31, it lost $191.8M, or $5.80 per share. In FY2026, the period ended 2026-05-30, it lost $40.6M, or $1.21 per share. Revenue fell from $632.8M in FY2024 to $551.3M in FY2025 to $452.0M in FY2026, and in Q1 FY2027, the quarter ended 2026-08-29, revenue was $98.1M with a net loss of $8.0M, or $0.23 per share. FairStock classifies it as a TURNAROUND — a loss in the latest year after earlier profits. The balance sheet has modest leverage, with D/E of 0.13, but FairStock's Altman Z-Score of 0.49 and ROE of -21.55% signal fragility. Trailing free cash flow of $619,000 is thin against a 7.07% dividend yield. A P/B of 0.55 may look cheap, but book value can erode with continuing losses. The numbers show no clear durable advantage: revenue is falling and returns are negative. Until revenue stabilizes and cash flow covers the dividend, this is a speculative turnaround, not a margin-of-safety bargain.

In plain English: Resources Connection provides consulting and on-demand professional talent to businesses. It has been losing money and sales have fallen from year to year, so the business looks weak today. The stock price is low compared with its stated asset value, but because the company is not profitable, it is hard to say whether it is truly cheap or just risky.

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 Q1 2027 10-Q (period ended 2026-08-29) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-29) · fiscal Q1 2026 10-Q (period ended 2025-08-30) · FY2026 10-K (period ended 2026-05-30) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-25)

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