Resources Global Professionals (formerly Resource Connections) provides consulting and business initiative support services in North America, Europe, and the Asia Pacific. The company offers finance and accounting services, including process transformation and improvement, financial reporting and analysis, technical and operational accounting, merger and acquisition due diligence, audit response, implementation of new accounting standards, and remediation support. The company was founded in 1996 and is based in Irvine, California.
RGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Resources Connection Inc. To summarize, we found that Resources Connection Inc ranked in the 74th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Resources Connection Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 16.38 -- which is good for besting 84.09% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Resources Connection Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 11.84% of tickers in our DCF set.
RGP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 11.84% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RGP, try ACTG, RCII, MHH, ASGN, and HOLI.
Resources Connection, Inc. (RGP) Q4 2020 Earnings Conference Call July 22, 2020 17:00 ET Corporate Participants Alice Washington - General Counsel Kate Duchene - Chief Executive Officer Tim Brackney - Chief Operating Officer Jennifer Ryu - Chief Financial Officer Conference Call participants Josh Vogel - Sidoti & Co Mark Marcon...
Ms. Washington, you may now begin. Joining me here today are Kate Duchene, our Chief Executive Officer; Tim Brackney, our Chief Operating Officer and Jennifer Ryu, our Chief Financial Officer. During this call, we will be commenting on our results for the fourth quarter ended May 30, 2020.