RCM Technologies, Inc. (RCMT) AI Stock Analysis

RCM Technologies, Inc. provides business and technology solutions across three primary operating segments: Engineering, Specialty Health Care, and Life Sciences and Information Technology. The Engineering segment delivers project management, engineering design, analysis, and engineer-procure-construct services to aerospace, defense, energy, and manufacturing clients. The Specialty Health Care segment offers staffing and placement services for allied therapy, nursing, correctional facilities, and school institutions. The Life Sciences and Information Technology segment provides enterprise application, infrastructure, and vertical business solutions for commercial and public sector organizations across the United States, Canada, Puerto Rico, and Serbia.

Between FY2020 and FY2025, revenue expanded at a five-year compound annual growth rate of 16.3%. After rising 39.6% in FY2022 to $284.7M, revenue fell 7.5% in FY2023 to $263.2M before rebounding 5.8% in FY2024 to $278.4M and 14.7% in FY2025 to $319.4M. Net income reached $16.3M in FY2025 with diluted earnings per share of $2.39, up from $13.3M and $1.90 in FY2024. For the trailing twelve months, revenue totaled $333.6M with an operating margin of 8.5% and a net profit margin of 5.1%. In the latest quarter ended June 30, 2026, year-over-year revenue grew 20.0% and quarterly earnings increased 36.0%.

As of June 30, 2026, RCM Technologies held $6.6M in cash and short-term investments alongside total debt of $9.0M, resulting in net debt of $2.4M. Total assets stood at $134.0M against shareholders' equity of $48.8M, yielding a debt-to-equity ratio of 0.18 and a current ratio of 1.92. During FY2025, the company generated $19.0M in operating cash flow and $17.4M in free cash flow. Capital allocation in FY2025 included capital expenditures of $1.6M and share buybacks of $7.4M, contributing to a 26.0% reduction in share count over five years.

RCM Technologies trades at a trailing price-to-earnings multiple of 16.3x and a forward multiple of 12.8x, both below the median of its US-listed Industrials peers of 24.8x and 17.2x. Its enterprise value to EBITDA ratio is 11.0x compared to the peer median of 13.9x, and its price-to-sales ratio is 0.8x versus the peer median of 1.5x. Over the past year, RCMT generated a return of 61.0%, outpacing the S&P 500 ETF (SPY) return of 16.8%. Over five years, the stock gained 526.0% compared to 83.0% for the benchmark index.

Wall Street coverage consists of 2 Strong Buy ratings, with zero Buy, Hold, or Sell recommendations. The mean price target is $45.00, representing an implied premium of 20.0% over the last close of $37.50. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $356.0M and earnings per share of $2.96, reflecting estimated earnings growth of 18.2%. For the following fiscal year, analysts expect revenue of $392.0M and earnings per share of $3.27. The company beat earnings per share estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 4, 2026.

This page is an AI-written research summary of RCM Technologies, Inc. (RCMT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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