MeritValue

RCM TECHNOLOGIES, INC.

RCMTdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

RCM TECHNOLOGIES, INC. earns about 52% on invested capital, far above its ~9% cost of capital, and has bought back 34% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $16.91 and $22.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2022FY 2023FY 2024FY 2026
Revenue$203.9M1$284.7M1$263.2M2$278.4M3$319.4M3
Net income$11M4$20.9M4$16.8M5$13.3M6$16.3M6
Operating cash flow$915,0007$28.3M7$12.5M8$6.17M9$19M9
Capital expenditure$568,00010$889,00010$2.93M11$2.57M12$1.6M12
Free cash flow (derived)$347,0007$27.4M7$9.55M8$3.6M9$17.4M9
Total debt—————
Cash & equivalents$235,00013$339,00013$6.28M14$4.73M15$2.92M15
Diluted shares11.6M10.4M8.6M7.9M7.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$60.21
your share of equity
Profit it earned you last year
$21.39
Free cash flow it threw off
$22.75
Debt you’d be carrying
—

10 shares is a claim on $60.21 of net worth that earned you $21.39 and generated $22.75 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
52% avg · 5y
FY22 42%FY22 65%FY23 81%FY24 41%FY26 33%

It earned about 52% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−34% shares · 5y

Share count is down 34% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $16.91 and $22.17 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$16.91
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$9.55M
DCF · Growth Exit 5Y
$18.25
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$9.55M
Earnings Power Value
$22.17
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$16.3M
  • growthAssumed0.0%
Graham Number
$17.03
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $18.25
The three cases
Bear0.0%$18.25
Base0.0%$18.25
Bull5.0%$22.58

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-01 · accession 0001437749-24-007884 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K/A · period ending 2023-12-30 · accession 0001437749-25-010202 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-12-28 · accession 0001437749-26-011236 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2022-01-01 · accession 0001437749-24-007884 (NetIncomeLoss)
  5. 10-K/A · period ending 2023-12-30 · accession 0001437749-25-010202 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-28 · accession 0001437749-26-011236 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-01 · accession 0001437749-24-007884 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K/A · period ending 2023-12-30 · accession 0001437749-25-010202 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-12-28 · accession 0001437749-26-011236 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-01 · accession 0001437749-24-007884 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K/A · period ending 2023-12-30 · accession 0001437749-25-010202 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-12-28 · accession 0001437749-26-011236 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-01 · accession 0001437749-24-007884 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K/A · period ending 2023-12-30 · accession 0001437749-25-010202 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-12-28 · accession 0001437749-26-011236 (CashAndCashEquivalentsAtCarryingValue)