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Resources Connection, Inc (RGP) Fair Value & Analysis

Industrials · US · Market cap $143M

RC Resources Connection, Inc logo Resources Connection, Inc RGP · US
Price$4.20
Fair Value$7.90
Upside+88.1%
Quality59/100
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Weak Growth
Loss-making · -20.2% net margin
Low debt · generates free cash flow
6.62% dividend yield
Mixed vs. peers (6/14)
Narrow moat 18/100
Evidence: Low Range $6.06 – $9.74 Share as image

Fair value as of: Jul 24, 2026

From 7 valuation models · updated 17 days ago

Share price −8.9% over the past month.

A solid business, screening 88% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($6.06). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$18.06 $3.42 Fair Value $7.90 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $3.42 – $18.06 · fair‑value band $6.06 – $9.74 · the $4.20 price screens below the $7.90 fair value. Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Resources Connection, Inc (RGP) currently trades at $4.20, while our model-based Fair Value estimate is $7.90, implying the stock looks roughly 88.1% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Resources Connection, Inc generated revenue of $485M at a net margin of -20.2%. Revenue declined 16.6% year over year. It earns a return on equity of -42.1%. The balance sheet holds a net cash position of $60.8M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $6.06 (bear case) to $9.74 (bull case); at $4.20, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 39% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -15% fair-value upside, at 88%, RGP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $4.63 $5.54 $6.54 80
Rev-Margin DCF $4.77 $6.57 $8.48 74
NCAV (Graham) $3.02 $4.04 $6.03 50
All 7 models by family
DCF Models
FCF DCF $4.58 $5.58 $6.70 38
5Y Revenue Exit $4.77 $6.51 $8.62 39
10Y Revenue Exit $4.55 $5.93 $7.55 36
Multiples
EV/Revenue $5.23 $7.07 $8.91 43
Asset-Based
NCAV (Graham) $3.02 $4.04 $6.03 50
Growth DCF
Growth DCF $4.63 $5.54 $6.54 80
Rev-Margin DCF $4.77 $6.57 $8.48 74

Widest divergence: Multiples ($7.07) versus Asset-Based ($4.04). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $485M
Revenue growth (YoY) -16.6%
Net margin -20.2%
Return on equity -42.1%
Free cash flow $16.2M FY2025
Operating margin -3.4%
More key figures
EPS (TTM) $-2.95
Dividend yield 6.6%
EPS growth (YoY) -10.9%
Net cash $60.8M FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 60 · Market factors (momentum, volatility) 42

Profitability 40
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 94
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Resources Connection, Inc. engages in the provision of consulting services to business customers under the Resources Global Professionals (RGP) name in North America, the Asia Pacific, and Europe. The company operates through On-Demand Talent, Consulting, Europe & Asia Pacific, Outsourced Services, and Sitrick segments.

Full company description

Resources Connection, Inc. engages in the provision of consulting services to business customers under the Resources Global Professionals (RGP) name in North America, the Asia Pacific, and Europe. The company operates through On-Demand Talent, Consulting, Europe & Asia Pacific, Outsourced Services, and Sitrick segments. Its On-Demand Talent segment includes experts for filling resource gaps. Its Consulting segments offers accounting and finance, technology and digital, risk and compliance, and supply chain transformation services. The company's Outsourced Services segments provides finance, accounting, and human resources services provided to startups, spinouts, and scale-up enterprises. Its Sitrick segment offers a crisis communications and public relations firm that provides corporate, financial, transactional, and crisis communication and management services. The company also provides human resources, information technology, payroll, and legal and real estate support services. In addition, it offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. Further, the company provides transformations services comprising cloud migration, and data design and analytics. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Dallas, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Resources Connection, Inc reported revenue of $551M in FY2025 versus $630M in FY2021, a compound −3.3%/yr. Reported net income was −$192M in FY2025.

Growth Quality 18/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$551M
Latest YoY
−12.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−11.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.8%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Revenue −3.3%/yr
FY21 $630M
FY22 $805M
FY23 $776M
FY24 $633M
FY25 $551M
Net income
FY21 $25.2M
FY22 $67.2M
FY23 $54.4M
FY24 $21.0M
FY25 −$192M
Character of growth · EPS growth decomposed (2014-2025) +6.0 % p.a.
Revenue per share +3.7 pp

of which total revenue +2.2 pp · buybacks/dilution +1.5 pp

EBIT margin −1.3 pp
Tax rate +3.6 pp
Residual (interest, one-offs) +0.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Resources Connection, Inc Fair Value". https://www.fairvalue-calculator.com/stock/RGP

Peer Group

Consulting Services · 82 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside +88% · Top 25%
Return on assets 0% · Below median
Net margin (TTM) -20% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -17% · Bottom 25%
Dividend yield (TTM) 6.6% · Top 25%
Debt / equity 0.26× · Higher than median

Valuation Multiples vs Consulting Services median · lower = cheaper

P/B 0.69× · Cheaper than 75% of peers
P/S (TTM) 0.30× · Cheaper than 75% of peers
P/FCF 8.9× · Pricier than median
EV/EBITDA 16.3× · Pricier than 75% of peers
PEG 0.80× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 20
FUTURE 0 · sector 14
PAST 0 · sector 40
HEALTH 87 · sector 89
DIVIDEND 100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Consulting Services stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Verisk Analytics, Inc VRSK $201.49 $145.58 -28%
SGS SA SGSN CHF 94.68 CHF 68.96 -27%
Equifax Inc EFX $177.08 $101.34 -43%
Bureau Veritas SA BVI €27.20 €27.81 +2%
ALS Limited ALQ A$21.96 A$11.02 -50%
Booz Allen Hamilton Holding BAH $63.94 $120.62 +89%
DKSH Holding DKSH CHF 67.60 CHF 64.81 -4%
FTI Consulting, Inc FCN $156.86 $171.64 +9%
Centre Testing International Group 300012 ¥14.06 ¥11.90 -15%
GRG Metrology & Test Group 002967 ¥16.56 ¥11.69 -29%

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Frequently asked questions

Is Resources Connection, Inc (RGP) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $7.90 versus a price of $4.20, about +88% (undervalued).
What is the fair value of RGP?
Our model-based fair value for Resources Connection, Inc is $7.90 (as of Jul 24, 2026), built from audited fundamentals. The current price is $4.20.
What is the quality score of RGP?
Resources Connection, Inc has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Resources Connection, Inc (RGP)?
Resources Connection, Inc reported trailing-twelve-month revenue of about $485M (latest available figure, as of Jul 24, 2026).
What is the net profit margin of RGP?
The net profit margin of Resources Connection, Inc is about -20.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Resources Connection, Inc pay a dividend?
Resources Connection, Inc currently shows a dividend yield of about 6.62% relative to its recent price (as of Jul 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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