Resources Connection Inc

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RECN : NASDAQ : Services
$15.00 | %
Today's Range: 14.85 - 15.13
Avg. Daily Volume: 175,700
07/22/16 - 4:00 PM ET

Financial Analysis


RESOURCES CONNECTION INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)152.52148.81
EBITDA ($mil)16.5415.4
EBIT ($mil)15.6814.52
Net Income ($mil)8.688.11


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)116.05112.24
Total Assets ($mil)422.24416.98
Total Debt ($mil)0.00.0
Equity ($mil)342.65340.45


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin39.9338.88
EBITDA Margin10.8410.34
Operating Margin10.289.76
Sales Turnover1.421.42
Return on Assets7.26.59
Return on Equity8.888.07
Debt Q4 FY15 Q4 FY14
Current Ratio0.03.22
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)36.2337.27
Div / share0.10.08
EPS0.230.21
Book value / share9.469.13
Institutional Own % n/a n/a
Avg Daily Volume163990.0150090.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 39.64 for the Professional Services industry and a discount compared to the S&P 500 average of 25.03. To use another comparison, its price-to-book ratio of 1.60 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 5.81. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, RESOURCES CONNECTION INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RECN 18.72 Peers 39.64   RECN 14.35 Peers 22.18

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RECN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RECN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RECN NA Peers 19.51   RECN 0.87 Peers 2.00

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RECN is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RECN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RECN 1.60 Peers 5.81   RECN 12.50 Peers 17.99

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RECN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RECN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RECN 0.92 Peers 3.18   RECN 1.34 Peers 13.31

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RECN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RECN significantly trails its peers on the basis of sales growth

 

 

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