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RCM Technologies

RCMT
61
Conglomerates · Industrials
Price
$40.86
-0.17 (-0.41%)
Market Cap
$289.6M
Exchange
NASDAQ
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jul 4, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Weak
Stability
Exceptional
Valuation
Strong

Share count falling — buybacks

34.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 11.6M (2022) → 7.6M (2026)

Winston Score History

The full picture

RCM Technologies is a staffing and engineering services company. It places specialized workers and project teams in three main areas: engineering (like designing infrastructure and industrial systems), technology (IT staffing and solutions), and specialty health care (nurses, therapists, and other clinical staff). Its customers include utilities, schools, hospitals, government agencies, and private companies across the United States and Canada.

The company earns money by billing clients for the hours its placed workers spend on the job, keeping a margin between what clients pay and what workers are paid. RCM operates primarily in North America and generates roughly $200 million or more in annual revenue. Its competitive edge comes from deep expertise in niche markets — particularly special education staffing and nuclear/utility engineering — which are harder to replicate than general staffing. The main risk is that demand for contract workers can drop quickly during economic slowdowns, and competition from larger staffing firms puts constant pressure on pricing and talent retention.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

42.4%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~5 months

$3M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

RCM Technologies has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
25.7%
Modest — 25.7% gross margin
Profit after running costs
Operating Margin
8.5%
Modest — 8.5% operating margin
Return on the money invested
ROCE
47.9%
Exceptional — 47.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+11.2%
Steady sales growth (+11.2% YoY)
Profit growth
EPS YoY
+25.8%
Earnings growing fast (+25.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
29%
Weak — only 29% of profit becomes cash
Spare cash per sale
FCF Margin
1.1%
Thin free cash flow (1.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.10
Conservative — low debt load (0.10)
Covers its interest
Interest Cover
9.42x
Comfortably covers interest (9.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.2x
Fair value — P/E 18.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+7.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.2 → 10.6)

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Dividends

Not applicable for this business.
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