Ratings RM plc

Equities

RM.

GB00BJT0FF39

Delayed London S.E. Other stock markets 11:35:26 2024-05-03 am EDT			5-day change	1st Jan Change
84.25 ^GBX	+12.33%		+14.24%	+29.22%

May. 02	RM extends contract with International Baccalaureate	AN
May. 02	RM plc and The International Baccalaureate Announce an Extension to Their Long-Term Relationship to Deliver Digital Assessment	CI

Summary

Overall, the company has poor fundamentals for a medium to long-term investment strategy.
The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

The company's profit outlook over the next few years is a strong asset.
With regards to fundamentals, the enterprise value to sales ratio is at 0.67 for the current period. Therefore, the company is undervalued.
For several months, analysts have been revising their EPS estimates roughly upwards.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

As estimated by analysts, this group is among those businesses with the lowest growth prospects.
As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
Low profitability weakens the company.
With an expected P/E ratio at 421.25 and 13.16 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
The company appears highly valued given the size of its balance sheet.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
For the past year, analysts have significantly revised downwards their profit estimates.
The company's earnings releases usually do not meet expectations.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Software

	1st Jan change	Capi.	ESG Refinitiv
RM PLC	+29.22%	88.03M	B-
SYNOPSYS INC.	+4.28%	81.91B	B
CADENCE DESIGN SYSTEMS, INC.	+3.40%	76.64B	B+
DASSAULT SYSTÈMES SE	-16.15%	52.31B	B+
PALANTIR TECHNOLOGIES INC.	+35.85%	51.96B	D+
ATLASSIAN CORPORATION	-22.85%	47.77B	B-
THE TRADE DESK, INC.	+23.11%	43.3B	D+
SEA LIMITED	+64.59%	38.29B	D+
ROBLOX CORPORATION	-14.17%	25.1B	-
TAKE-TWO INTERACTIVE SOFTWARE, INC.	-9.36%	24.89B	C+

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes