Resources Connection, Inc. (RGP) AI Stock Analysis

Resources Connection, Inc., operating under the Resources Global Professionals brand, provides consulting services addressing transactions, regulations, and transformations. Its transaction services assist clients with integrations, divestitures, restructurings, and IPO readiness, alongside optimizing financial processes and systems. The firm offers regulatory expertise across accounting standards, internal audit, data privacy, and healthcare compliance. It also manages operational and digital transformation initiatives, including cloud migration, supply chain enhancement, and data analytics. Additionally, the company maintains a strategic alliance with Kotter International, Inc. to deliver integrated change management solutions.

Top-line performance has contracted significantly, yielding a 5-year revenue CAGR of -10.9% from FY2022 to FY2026. Annual revenue fell from $775.6M in FY2023 to $632.8M in FY2024, $551.3M in FY2025, and $452.0M in FY2026. Operating margin dropped from 9.4% in FY2023 to -8.5% in FY2026, with net income declining from $54.4M to -$40.6M over the same timeframe. In the latest quarter ended August 31, 2026, quarterly revenue growth contracted 18.4% year-over-year, while quarterly earnings growth dropped 10.9%. Trailing twelve months revenue stands at $429.9M with a net profit margin of -10.7% and EPS of -$1.36.

As of August 31, 2026, Resources Connection held $61.2M in cash and short-term investments against $22.5M in total debt, resulting in net cash of $38.7M. Shareholders' equity was $161.3M with total assets of $231.9M. The company exhibits a current ratio of 2.85 and a debt-to-equity ratio of 0.14. In FY2026, operating cash flow dropped to $1.4M and free cash flow was $619,000, while capital expenditures were $808,000. Cash flow supported $9.4M in dividends paid, alongside $2.2M in share issuance.

RGP trades at a forward P/E of 12.0x, lower than the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple is 0.2x compared to the peer median of 1.5x, and its EV-to-EBITDA stands at 9.7x versus the peer median of 13.9x. The stock carries a market capitalization of $88.5M and an enterprise value of $74.0M. Over the past year, the stock fell 40.7%, while the S&P 500 (SPY) gained 16.8%. Over a 5-year period, RGP fell 81.6% compared to an 83.0% gain for the benchmark.

Resources Connection offers a forward annual dividend of $0.28 per share, representing a dividend yield of 10.98%. The quarterly dividend has been paid for 17 consecutive years, though the 5-year annualized dividend growth is -9.0%. The payout ratio stands at 155.6%, and the most recent ex-dividend date was September 3, 2026.

Wall Street coverage includes 2 Strong Buy ratings and 1 Sell rating. The mean price target is $6.50, implying upside of 154.9% from the October 16, 2026 close of $2.55. For the current fiscal year ending May 31, 2027, consensus estimates project an EPS of -$0.61 on revenue of $401.3M. For the next fiscal year, 2 analysts project an EPS of -$0.15 and revenue of $433.0M. The company has beat EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of Resources Connection, Inc. (RGP). 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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