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R C M Technologies Inc

R C M Technologies Inc

RCMT
$27.69USD↑+0.65%+0.18 today

MARKET CAP

196.3M

P/E (TTM)

11.5x

FWD P/E

11.3x

DAY RANGE

$27 – $28

52W RANGE

$17
$33

AI Summary

Stalk
Buy NowMedium

RCMT is in a Stage 2 advancing corrective reset within its long-term uptrend. Price is holding above rising 9 EMA and 20 EMA after a shallow pullback, tightly tracking these EMAs on neutral volume. The medium-term structure is reinforced by an active Higher Highs & Higher Lows pattern and price above the rising 50 DMA. Short-term timing is favorable now for continuation participation. Key risks include a decisive breakdown below the EMAs and moderate transition risk toward Stage 3 distribution.

  • ↑Q3 school segment revenue rose 20.7% YoY to $24.4M
  • ↑Q2 adjusted EBITDA grew 12.9% YoY to $8.1M, with low-double-digit guidance for FY25
  • ↓Adjusted EBITDA of $8.1M in Q2 shows margin squeeze from rising costs
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

RCM Technologies, Inc. (NASDAQ: RCMT) is a diversified service company that specializes in staffing solutions primarily within the healthcare, education, and engineering sectors. The company is strengthening its position in the growing staffing industry, focusing on essential services like healthcare staffing and data solutions amid evolving client demands. RCM operates in an environment shaped by increasing needs for specialized services, particularly in behavioral health, and is poised to benefit from upcoming opportunities in the energy sector, supporting the theme of enhanced workforce solutions.

Bull says

  • ↑Q3 school segment revenue rose 20.7% YoY to $24.4M
  • ↑Q2 adjusted EBITDA grew 12.9% YoY to $8.1M, with low-double-digit guidance for FY25
  • ↑Energy services backlog at $70M for 2026, signaling strong project pipeline
  • ↑Operating cash flow of $16.7M in Q1 and 300K shares repurchased YTD
  • ↑High demand in healthcare, education staffing and AI/data solutions drives expansion
  • ↑Strong earnings yield and positive analyst revisions indicate upward momentum

Bear says

  • ↓Adjusted EBITDA of $8.1M in Q2 shows margin squeeze from rising costs
  • ↓Reliance on K-12 education ties revenue to volatile public funding
  • ↓Engineering gross margins fluctuate due to mix shifts and subcontractor costs
  • ↓Zacks Rank #4 (Sell) and negative book-to-price hint valuation concerns
  • ↓Economic uncertainty may dampen staffing demand amid tighter budgets
  • ↓Negative size, leverage and liquidity factors plus high short interest suggest downside

Investment themes with RCMT

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ATAI · SVIX · SVXY

Earnings Call · Q3 2024 · Mgmt. Guidance

Updated 07-03-2026neutral

Transcript signals

Bull points

  • Third quarter growth was led by healthcare and engineering as both businesses continue to ramp in their respective end markets.
  • Our strategic construct allows us to not just deliver over the short term, but to provide a sustainable long-term path for the company.
  • Our K through 12 client roster continues to grow with new partnerships already yielding strong results.

Bear points

  • $6.4 million as compared to $7.6 million.
  • $6.4 million as compared to $7.6 million.
  • other expense net for the quarter was $620,000, which is mostly interest expense, including $490,000 in interest expense and $127,000 in loss on foreign currency transactions.
Read full transcript analysis ›