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RGPResources Connection, Inc.
$4.61$158M
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  4. Financial Ratios

Resources Connection, Inc. (RGP) Financial Ratios

Latest Ratios: P/E Ratio -0.8x · EV/EBITDA N/A · ROE -61.3%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

RGP Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$158M$173M$378M$532M$610M$475M$354M$501M$510M$423M$583M
Enterprise Value$97M$112M$283M$433M$581M$474M$388M$501M$517M$409M$467M
P/E Ratio →-0.79—18.009.799.0918.6912.4915.8827.2522.5919.15
P/S Ratio0.290.310.600.690.760.750.500.690.780.730.97
P/B Ratio0.740.830.901.281.641.441.171.771.901.781.70
P/FCF9.7810.6618.216.6813.1213.157.5113.6538.7818.0316.26
P/OCF8.379.1317.266.5212.3411.887.1511.4933.2014.9815.24

P/E links to full P/E history page with 30-year chart

RGP EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.200.450.560.720.750.550.690.790.700.78
EV / EBITDA——7.605.336.3214.788.198.5513.9610.818.15
EV / EBIT—40.618.605.696.9219.5310.429.9916.8811.898.68
EV / FCF—6.9013.615.4412.5113.148.2313.6439.2817.4213.02

RGP Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin37.6%37.6%38.9%40.4%39.3%38.3%39.2%38.7%37.6%37.9%38.8%
Operating Margin-35.7%-35.7%4.5%9.4%10.4%3.6%5.2%6.9%4.7%5.9%9.0%
Net Profit Margin-34.8%-34.8%3.3%7.0%8.3%4.0%4.0%4.3%2.9%3.2%5.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-61.3%-61.3%5.0%13.8%19.1%8.0%9.7%11.4%7.4%6.4%8.9%
ROA-47.0%-47.0%4.0%9.8%12.2%4.8%5.9%7.3%4.7%4.7%7.3%
ROIC-62.9%-62.9%6.8%16.6%18.6%5.2%8.9%13.5%9.2%11.5%17.7%
ROCE-58.9%-58.9%6.6%16.3%19.0%5.4%9.5%14.9%9.7%10.7%15.4%

RGP Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.120.120.030.040.200.220.430.150.230.20—
Debt / EBITDA——0.360.220.822.312.740.731.701.27—
Net Debt / Equity—-0.29-0.23-0.24-0.08-0.000.11-0.000.02-0.06-0.34
Net Debt / EBITDA——-2.57-1.22-0.31-0.010.72-0.000.18-0.38-2.02
Debt / FCF—-3.76-4.60-1.24-0.62-0.010.73-0.000.50-0.61-3.23
Interest Coverage———137.9478.9815.1818.0922.9016.4044.50—

Net cash position: cash ($86M) exceeds total debt ($25M)

RGP Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.702.703.322.722.482.332.432.102.062.323.20
Quick Ratio2.702.703.322.722.482.332.432.032.062.323.08
Cash Ratio1.141.141.501.200.840.741.010.470.600.871.64
Asset Turnover—1.811.241.461.381.211.331.701.511.601.42
Inventory Turnover———————74.66——43.38
Days Sales Outstanding—71.0366.9566.8785.3889.0867.0267.8673.2062.6459.65

RGP Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield12.2%10.8%5.0%3.5%3.0%3.8%5.0%3.2%2.8%3.3%2.4%
Payout Ratio——89.5%34.6%27.7%72.3%62.2%51.3%75.8%75.9%46.3%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——5.6%10.2%11.0%5.3%8.0%6.3%3.7%4.4%5.2%
FCF Yield10.2%9.4%5.5%15.0%7.6%7.6%13.3%7.3%2.6%5.5%6.2%
Buyback Yield8.2%7.5%2.1%2.9%3.2%0.0%1.4%6.0%1.0%28.1%4.8%
Total Shareholder Yield20.4%18.3%7.1%6.4%6.3%3.8%6.4%9.2%3.8%31.4%7.2%
Shares Outstanding—$33M$34M$34M$34M$33M$32M$32M$31M$33M$38M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetHealthy
Cash FlowDeteriorating
Top Statement Risk

Persistent Revenue Contraction

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Distressed Multiples Reflect Operational Uncertainty

Based on reported financial data, RGP trades at a P/S of 0.25 and a P/FCF of 8.63, suggesting that the market is pricing the firm as a distressed asset rather than a growth-oriented professional services provider, despite the company's historically conservative capital structure and significant cash reserves.

The current valuation multiples appear to reflect deep skepticism regarding the company's ability to return to historical profitability levels. Investors should monitor whether the low P/S ratio represents a genuine value opportunity or a permanent impairment of the firm's competitive positioning in the consulting market.

Capital Returns Decaying Amidst Losses

As reported in recent financial statements, RGP's ROIC has plummeted to -2.1% in 2026Q3, a stark reversal from positive territory, indicating that the firm is currently failing to generate adequate returns on its invested capital as operational losses erode the underlying equity base.

The collapse in ROIC appears driven by the inability to maintain operating margins while the asset base undergoes significant restructuring. This trend warrants further investigation into whether the firm's current business model can achieve a positive spread over its cost of capital without a fundamental shift in service delivery.

Working Capital Efficiency Under Pressure

According to quarterly filings, RGP's DSO has remained elevated near 76 days, suggesting that the firm's ability to convert billable hours into cash is being hampered by client payment cycles, which exacerbates the liquidity strain caused by the ongoing contraction in top-line revenue.

The lack of improvement in DSO during a period of declining revenue suggests that the firm may have limited leverage over its client base regarding payment terms. This inefficiency appears to be a structural drag on cash flow, potentially limiting the company's ability to fund internal initiatives during this downturn.

Minimal Debt Masks Operational Fragility

Based on the company's balance sheet, RGP maintains a negligible D/E ratio of 0.13, which provides a significant buffer against insolvency, yet the lack of meaningful interest coverage suggests that the firm's current operational losses are the primary threat to its long-term financial stability.

While the low debt levels are a clear strength, they do not compensate for the lack of operating profitability. Investors should monitor whether the firm's reliance on cash reserves to sustain operations and dividends is sustainable if the current revenue contraction persists into future quarters.

Misapplication of Staffing Industry Metrics

As noted in industry analysis, the market frequently misapplies generic staffing firm valuation multiples to RGP, which obscures the firm's unique role as a specialized project-based consulting provider that is more sensitive to regulatory cycles than to broad-based labor market unemployment trends.

Using standard staffing metrics ignores the high-value nature of RGP's transformation and transaction work, which requires a different analytical framework focused on billable utilization and project duration. Analysts should instead prioritize tracking the firm's ability to capture high-margin regulatory mandates, which are less correlated with general economic staffing demand.

Download Financial Ratios Data

Includes 30+ ratios · 26 years · Updated daily

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RGP — Frequently Asked Questions

Quick answers to the most common questions about buying RGP stock.

What is Resources Connection, Inc.'s P/E ratio?

Resources Connection, Inc.'s current P/E ratio is -0.8x. The historical average is 24.6x.

What is Resources Connection, Inc.'s ROE?

Resources Connection, Inc.'s return on equity (ROE) is -61.3%. The historical average is 20.1%.

Is RGP stock overvalued?

Based on historical data, Resources Connection, Inc. is trading at a P/E of -0.8x. Compare with industry peers and growth rates for a complete picture.

What is Resources Connection, Inc.'s dividend yield?

Resources Connection, Inc.'s current dividend yield is 12.23%.

What are Resources Connection, Inc.'s profit margins?

Resources Connection, Inc. has 37.6% gross margin and -35.7% operating margin.