RGP:NASDAQResources Connection, Inc. Analysis
Data as of 2026-05-21 - not real-time
$4.50
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Resources Connection, Inc. (RGP) is trading just above its 20‑day simple moving average with a neutral trend, while the 14‑day RSI sits in the mid‑60s and the MACD has turned bearish, suggesting limited upside in the near term.
The company’s fundamentals are strained – it reports negative earnings, a negative operating margin and a high payout ratio exceeding 150%, which raises concerns about dividend sustainability despite the attractive 6% yield. However, a discounted cash‑flow model values the stock at roughly $13, implying a substantial undervaluation relative to the current price of $4.5, and volume has been trending upward, supporting a potential medium‑term rebound.
The company’s fundamentals are strained – it reports negative earnings, a negative operating margin and a high payout ratio exceeding 150%, which raises concerns about dividend sustainability despite the attractive 6% yield. However, a discounted cash‑flow model values the stock at roughly $13, implying a substantial undervaluation relative to the current price of $4.5, and volume has been trending upward, supporting a potential medium‑term rebound.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 6/10
Key Factors
- Bearish MACD histogram
- Price approaching resistance level
- High short‑term volatility
Medium Term
1–3 yearsPositive
Model confidence: 6/10
Key Factors
- DCF‑derived fair value far above market price
- Rising trading volume indicating interest
- Potential upside of over 20% per upside/downside estimate
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- Fundamental earnings weakness and high payout ratio
- Sector stability in professional services
- Recent board and governance updates that may improve execution
Key Metrics & Analysis
Financial Health
Revenue Growth-16.60%
Profit Margin-20.16%
P/E Ratio-450.0
ROE-42.13%
ROA0.18%
Debt/Equity13.05
P/B Ratio0.8
Op. Cash Flow$16.1M
Free Cash Flow$30.8M
Industry P/E29.5
Technical Analysis
TrendNeutral
RSI64.9
Support$3.84
Resistance$4.57
MA 20$4.30
MA 50$3.96
MA 200$4.48
MACDBearish
VolumeIncreasing
Fear & Greed Index91.5
Valuation
Fair Value$13.38
Target Price$5.50
Upside/Downside22.22%
GradeUndervalued
TypeValue
Dividend Yield6.32%
Risk Assessment
Beta1.11
Volatility36.03%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.