RESOURCES CONNECTION, INC.
RGPdata completeness 88%18 fiscal years on fileRESOURCES CONNECTION, INC. earns about -23% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $6.5 and $9.35 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|---|---|
| Revenue | $805M1 | $775.6M2 | $632.8M3 | $551.3M3 | $452M3 |
| Net income | $67.2M4 | $54.4M5 | $21M6 | −$191.8M6 | −$40.6M6 |
| Operating cash flow | $49.4M7 | $81.6M8 | $21.9M9 | $18.9M9 | $1.43M9 |
| Capital expenditure | $2.96M10 | $2.01M11 | $1.14M12 | $2.71M12 | $808,00012 |
| Free cash flow (derived) | $46.5M7 | $79.6M8 | $20.8M9 | $16.2M9 | $619,0009 |
| Total debt | $54M13 | $014 | $015 | $015 | — |
| Cash & equivalents | $104.2M16 | $116.8M16 | $108.9M17 | $86.1M18 | $82.4M18 |
| Diluted shares | 33.6M | 34.2M | 33.9M | 33.1M | 33.6M |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).
10 shares is a claim on $50.6 of net worth that earned you −$12.1 and generated $0.18 of cash last year.
It earned about -23% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.
seeing a moat in the numbers →Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 100% — deleveraging.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $6.5 and $9.35 a share. They rest on different assumptions, so where they diverge is the story.
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears10
- fcfGrowth0.0%
- fcfBase$16.2M
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears5
- fcfGrowth0.0%
- fcfBase$16.2M
assumptions (8)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- normalizedEarnings$21M
- growthAssumed0.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $9.35 |
| Base | 0.0% | $9.35 |
| Bull | 5.0% | $11.02 |
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.
- 10-K · period ending 2022-05-28 · accession 0001084765-24-000089 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2023-05-27 · accession 0001084765-25-000115 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2024-05-25 · accession 0001084765-26-000051 (RevenueFromContractWithCustomerExcludingAssessedTax)
- 10-K · period ending 2022-05-28 · accession 0001084765-24-000089 (NetIncomeLoss)
- 10-K · period ending 2023-05-27 · accession 0001084765-25-000115 (NetIncomeLoss)
- 10-K · period ending 2024-05-25 · accession 0001084765-26-000051 (NetIncomeLoss)
- 10-K · period ending 2022-05-28 · accession 0001084765-24-000089 (NetCashProvidedByUsedInOperatingActivities)
- 10-K · period ending 2023-05-27 · accession 0001084765-25-000115 (NetCashProvidedByUsedInOperatingActivities)
- 10-K · period ending 2024-05-25 · accession 0001084765-26-000051 (NetCashProvidedByUsedInOperatingActivities)
- 10-K · period ending 2022-05-28 · accession 0001084765-24-000089 (PaymentsToAcquirePropertyPlantAndEquipment)
- 10-K · period ending 2023-05-27 · accession 0001084765-25-000115 (PaymentsToAcquirePropertyPlantAndEquipment)
- 10-K · period ending 2024-05-25 · accession 0001084765-26-000051 (PaymentsToAcquirePropertyPlantAndEquipment)
- 10-K · period ending 2022-05-28 · accession 0001084765-23-000016 (LongTermDebtNoncurrent)
- 10-K · period ending 2023-05-27 · accession 0001084765-24-000089 (LongTermDebtNoncurrent)
- 10-K · period ending 2024-05-25 · accession 0001084765-25-000115 (LongTermDebtNoncurrent)
- 10-K · period ending 2022-05-28 · accession 0001084765-24-000089 (CashAndCashEquivalentsAtCarryingValue)
- 10-K · period ending 2024-05-25 · accession 0001084765-25-000115 (CashAndCashEquivalentsAtCarryingValue)
- 10-K · period ending 2025-05-31 · accession 0001084765-26-000051 (CashAndCashEquivalentsAtCarryingValue)