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RM
(LSE:RM)
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Rating:50Neutral
Price Target:
99.00 p
▼(-1.98% 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 deleveraging
The 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 conversion
Weak 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging
The 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.
Read all positive factors
RM (RM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£108.55M
Dividend Yield3.2%
Average Volume (3M)73.37K
Price to Earnings (P/E)22.1
Beta (1Y)-0.12
Revenue Growth-0.74%
EPS GrowthN/A
CountryUK
Employees1,543
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
Shares Outstanding98,085,540
10 Day Avg. Volume40,715
30 Day Avg. Volume73,369
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)3.03
Price to Sales (P/S)0.58
P/FCF Ratio85.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.02
Revenue Forecast (FY)£83.00M
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...
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...
RM Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.00M | 162.07M | 166.14M | 195.19M | 214.17M | 206.15M |
| Gross Profit | 59.05M | 61.63M | 116.86M | 60.19M | 57.94M | 58.98M |
| EBITDA | 15.50M | 11.78M | -1.32M | 26.80M | -13.86M | 11.24M |
| Net Income | 3.49M | 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 | 86.00K | 1.10M | 3.55M | -11.55M | -25.99M | -3.40M |
| Operating Cash Flow | 1.14M | 2.09M | 8.37M | -10.46M | -20.79M | 4.62M |
| Investing Cash Flow | -9.75M | -9.74M | -4.72M | 20.85M | 891.00K | -12.59M |
| Financing Cash Flow | 6.18M | 10.19M | -8.00M | -4.14M | 20.29M | 6.03M |
RM Technical Analysis
Negative
101.00
Price Trends
101.52
Negative
99.66
Negative
100.85
Negative
Market Momentum
0.76
Positive
42.91
Neutral
37.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RM, the sentiment is Negative. The current price of 101 is below the 20-day moving average (MA) of 103.69, below the 50-day MA of 101.52, and above the 200-day MA of 100.85, indicating a bearish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RM.
RM Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £216.19M | 24.58 | 15.05% | 3.37% | 6.41% | 10.61% | |
68 Neutral | £213.25M | 87.41 | 5.22% | 0.75% | 19.00% | -53.85% | |
66 Neutral | £38.58M | 23.12 | 22.52% | 1.44% | 11.94% | 53.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £333.87M | -4.65 | -14.39% | 2.94% | 0.82% | -997.08% | |
50 Neutral | £108.55M | 22.10 | 11.11% | 3.20% | -0.74% | ― |
* Technology Sector Average
GB:RM
RM
99.00
7.00
7.61%
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GB:NET
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GB:TRB
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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.