Resources Connection, headquartered in Irvine, California, provides business consulting services with 4,062 employees and operates segments like Resources Global Professionals and Sitrick, focusing on project execution and crisis communications. The company went public on December 15, 2000, serving markets in North America, Europe, and Asia Pacific.
Based on our analysis, Resources Connection (RGP) is currently rated as undervalued with a score of 4 out of 5 stars. The company presents several compelling financial metrics that suggest it is trading below its intrinsic value compared to its industry peers.
Firstly, Resources Connection has a Price-to-Book (PB) ratio of 0.90, significantly lower than the sector average of 2.48. This indicates that the company's stock price is undervalued relative to its book value, suggesting potential for price appreciation.
In terms of profitability, Resources Connection boasts a net profit margin of 3.32%, which is notably higher than the sector's 0.92%. This demonstrates that the company is more efficient in converting revenue into actual profit, signaling strong operational performance.
The company also shows a robust Return on Equity (ROE) of 5.02%, compared to the sector average of 2.33%. A high ROE indicates that Resources Connection is effectively using shareholders' equity to generate profits, a positive sign for investors.
Additionally, Resources Connection offers an impressive dividend yield of 7.78%, far exceeding the sector average of 1.16%. This high yield provides a strong incentive for income-focused investors and reflects the company's commitment to returning value to shareholders.
Lastly, the Return on Assets (ROA) ratio stands at 4.12%, significantly higher than the sector's 0.47%. This suggests that Resources Connection is efficiently utilizing its assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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