Radcom Stock Analysis, Valuation (NASDAQ:RDCM)

Add to My Stocks
$19.5 $0.1 (0.51%) RDCM stock closing price May 18, 2018 (Closing)
Watch Robo Advisor Video of RDCM Stock Analysis
Radcom
Updated on : May 18, 2018
previous close
RDCM 19.5 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Networks
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
16.7%
Operating Profit
Operating Margin:
7%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
-$10.6M
Net Income:
$2.3M
PROS      CONS
Recent Growth
Long Term Growth
ROIC
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RDCM PS :
6.8
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15%
Return on Equity:
6%
Free Cash Flow Margin:
-26.8%
Double Tap To Exit Full Screen
0:00
/

Radcom Stock Analysis

20 5 2

Take a look at Amigobulls Radcom stock analysis video. Our RDCM analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

RADCOM Ltd. Stock Rating 2.6/5

Amigobulls RDCM stock analysis relies on business fundamentals such as Radcom revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. Radcom valuation forms a crucial part of our stock analysis. Radcom stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy RDCM stock?

  • The Year Over Year (YoY) revenue growth for Radcom was 32.2% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 16.7%.
  • Radcom's return on invested capital of 15% is good.

Should you sell RDCM stock?

  • RDCM stock is trading at a PE ratio of 88.6, which is worse than the industry average multiple of 25.1.
  • The company is trading at a price to sales multiple of 6.8, which is overvalued in comparison to the Computer-Networks industry average multiple of 2.9.
  • Radcom has a negative FCF (Free Cash Flow) margin of -26.8%.

Comments on this video and Radcom stock

Amigobulls Radcom stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of RDCM stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Radcom revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of RDCM technical analysis to check whether the fundamental story is reflected in the market sentiment.