Resources Connection, Inc. (RGP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+245.0%

$9.14

vs $2.65 price

Levered DCF

$7.02

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

1.39

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-3.74×	-0.9×	18.17×	9.55×	8.91×	18.69×	12.49×	15.35×
P/B	0.89×	0.83×	0.91×	1.25×	1.61×	1.44×	1.16×	1.72×
P/S	0.34×	0.31×	0.61×	0.67×	0.74×	0.75×	0.5×	0.67×
EV / EBITDA	-3.29×	10.64×	6.96×	4.97×	6.17×	14.15×	8.03×	8.27×
Gross margin	37.5%	37.6%	38.9%	40.4%	39.3%	38.3%	39.2%	38.7%
Operating margin	-8.5%	-35.7%	4.5%	9.4%	10.4%	3.6%	5.2%	6.9%
Net margin	-9.0%	-34.8%	3.3%	7.0%	8.3%	4.0%	4.0%	4.3%
Current ratio	2.51×	2.7×	3.32×	2.72×	2.48×	2.33×	2.43×	2.1×
Debt / equity	0.13×	0.12×	0.03×	0.04×	0.2×	0.22×	0.43×	0.15×
Interest coverage	0×	0×	0×	131.86×	78.42×	14.35×	17.78×	22.9×
Dividend yield	6.2%	10.8%	4.9%	3.6%	3.1%	3.9%	5.0%	3.3%
Payout ratio	-23.1%	-9.7%	89.5%	34.6%	27.7%	72.3%	62.2%	51.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-23.9%	-92.6%	5.0%	13.1%	18.0%	7.7%	9.3%	11.1%
Return on invested capital	-19.7%	-82.1%	4.6%	12.3%	14.5%	5.3%	6.6%	9.8%
Return on assets	-15.8%	-62.9%	4.1%	10.2%	11.6%	4.8%	5.3%	7.3%
Free cash flow yield	0.4%	9.4%	5.4%	15.3%	7.8%	7.6%	13.4%	7.6%
Earnings yield	-26.8%	-111.1%	5.5%	10.5%	11.2%	5.3%	8.0%	6.5%
Enterprise value	$91.8M	$111.7M	$287.4M	$421.1M	$570.4M	$472.6M	$385.8M	$485M
Net debt / EBITDA	2.14×	-5.79×	-2.31×	-1.17×	-0.31×	-0.01×	0.71×	-0×
Cash conversion cycle (days)	43	56	53	55	75	74	54	55