RM (RM) AI Stock Analysis

7 Followers

(LSE:RM)

Select Model

Rating:50Neutral

Price Target:GBX 99.00▼(-1.00% Downside)

Action:reiterated

Date:10/01/26

Overall score is driven primarily by improving fundamentals (return to profit and sharply reduced leverage), but it is held back by weak and volatile cash flow conversion and thin margins. Technicals add a further headwind as the stock trades below key moving averages, while valuation appears only moderate (P/E ~22) without a provided dividend yield to offset execution risk.

Positive Factors

Material deleveragingThe sharp reduction in debt materially improves financial flexibility and lowers balance-sheet risk compared with the prior year. Less leverage should reduce pressure on future cash flows, support investment in the education-services business, and give management more capacity to manage operating volatility.

Negative Factors

Weak cash conversionWeak and declining cash generation reduces the quality of the earnings recovery because reported profit is not translating efficiently into usable funds. Continued low conversion could constrain reinvestment, debt reduction, and resilience, particularly if operating conditions become less supportive.

RM (RM) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 97.47M
Dividend Yield: ―
Average Volume (3M): 135.42K
Price to Earnings (P/E): 22.3
Beta (1Y): -0.13
Revenue Growth: -0.74%
EPS Growth: ―
Country: UK
Employees: 1,543
Sector: Technology
Sector Strength: 61
Industry: Software - Application

RM Business Overview & Revenue Model

Company Description

RM Plc is an investment holding company, which engages in the provision of technology and resources to the education sector. It operates through the following segments: RM TTS (RM Technical Teaching Solutions) RM Assessment, and RM Technology. The RM...

How the Company Makes Money

RM (RM) primarily makes money by selling education-related products and services to institutional customers such as schools and multi-academy trusts. Key revenue streams include (1) sales and distribution of educational supplies and resources, and (2...

RM Financial Statement Overview

Summary

Financials show a turnaround in FY2025 with profitability returning (positive EBIT and net income) and a much healthier balance sheet as debt dropped sharply. However, the recovery is not yet high-quality: margins remain thin and cash generation is the weakest area, with free cash flow down materially year over year and a volatile multi-year cash flow record.

Income Statement

55Neutral

Balance Sheet

62Positive

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	232.20M	162.07M	166.14M	195.19M	214.17M	206.15M
Gross Profit	87.46M	61.63M	116.86M	60.19M	57.94M	58.98M
EBITDA	16.64M	11.78M	-1.32M	26.80M	-13.86M	11.72M
Net Income	170.00K	2.19M	-4.74M	-29.10M	-14.50M	4.19M
Balance Sheet
Total Assets	156.29M	145.11M	138.50M	139.76M	202.65M	210.82M
Cash, Cash Equivalents and Short-Term Investments	4.91M	6.17M	8.20M	8.06M	1.91M	3.56M
Total Debt	79.35M	72.11M	74.82M	70.14M	67.87M	42.75M
Total Liabilities	124.39M	114.19M	121.39M	121.94M	142.01M	123.32M
Stockholders Equity	31.90M	30.93M	17.11M	17.83M	60.64M	86.97M
Cash Flow
Free Cash Flow	798.00K	1.10M	3.55M	-11.55M	-25.99M	-3.40M
Operating Cash Flow	2.29M	2.09M	8.37M	-10.46M	-20.79M	4.62M
Investing Cash Flow	-13.94M	-9.74M	-4.72M	20.85M	891.00K	-12.59M
Financing Cash Flow	8.98M	10.19M	-8.00M	-4.14M	20.29M	6.03M

RM Technical Analysis

Technical Analysis SentimentPositive

Last Price100.00

Price Trends

50DMA101.24Negative

100DMA99.03Positive

200DMA99.03Positive

Market Momentum

MACD-0.39Negative

RSI50.45Neutral

STOCH50.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RM, the sentiment is Positive. The current price of 100.00 is above the 20-day moving average (MA) of 99.44, below the 50-day MA of 101.24, and above the 200-day MA of 99.03, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RM.

RM Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:RM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:TRB	80Outperform	GBP 217.26M	24.58	15.05%	3.37%	6.41%	10.61%
GB:NET	77Outperform	GBP 238.84M	147.85	3.23%	0.68%	20.24%	-62.04%
GB:SKL	77Outperform	GBP 40.37M	24.19	22.52%	1.44%	11.94%	53.28%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GB:GBG	54Neutral	GBP 343.50M	-4.78	-14.39%	2.86%	0.82%	-997.08%
GB:RM	50Neutral	GBP 96.92M	22.32	11.11%	―	-0.74%	―

* Technology Sector Average

Performance Comparison

GB:RM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:RM	RM plc	100.00	-11.00	-9.91%
GB:GBG	GB Group plc	153.80	-79.58	-34.10%
GB:NET	Netcall plc	137.50	15.54	12.74%
GB:TRB	Tribal Group plc	102.50	41.57	68.23%
GB:SKL	Skillcast Group Plc	45.00	-15.11	-25.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026

RM AI Stock Analysis