Resources Connection (RGP) AI Stock Analysis

• Market Cap: $169.52M
• Dividend Yield: 8.27%
• Average Volume (3M): 276.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -12.87%
• EPS Growth: -1025.47%
• Country: US
• Employees: 722
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -2.23
• Shares Outstanding: 33,369,580
• 10 Day Avg. Volume: 303,015
• 30 Day Avg. Volume: 276,857
• PEG Ratio: <0.01
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 10.66
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $11.00
• Price Target Upside: 116.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $5.00 ▼(-1.57% Downside)

RGP's overall stock score is driven by financial challenges, particularly in revenue and profitability, which are partially offset by strong gross margins and strategic growth initiatives. The technical indicators are neutral, and the valuation reflects high dividend yield but negative earnings. The earnings call provides some optimism for future growth, but significant challenges remain.

Resources Connection Business Overview & Revenue Model

Company Description

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company 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. It also provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics. The company has a strategic alliance with Kotter International, Inc. to accelerate joint business development initiatives. 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 Irvine, California.

How the Company Makes Money

RGP generates revenue primarily through the provision of consulting services, where the company charges clients on an hourly or project basis. Key revenue streams include fees from interim management roles, project consulting engagements, and advisory services. The company also benefits from long-term relationships with clients, leading to repeat business and referrals. Additionally, RGP has strategic partnerships with various firms and organizations, which can enhance its service offerings and expand its market reach. The emphasis on flexible workforce solutions allows RGP to adapt to changing client needs, contributing to consistent revenue generation.

Resources Connection Financial Statement Overview

Summary

The financial performance of RGP is concerning due to declining revenue and profitability, with negative profit margins and net losses. The balance sheet is stable with low leverage, but the negative return on equity is troubling. Cash flow shows some positive signs, but overall financial health needs improvement.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The company experienced a negative revenue growth rate and significant net losses in the most recent period, leading to negative profit margins. Historically, the company had positive margins, but recent performance indicates financial distress.

Balance Sheet

The balance sheet reflects moderate leverage with a low debt-to-equity ratio, indicating conservative financial management. However, the return on equity has turned negative, reflecting poor profitability. The equity ratio remains stable, suggesting a solid capital structure despite recent challenges.

Cash Flow

Cash flow analysis reveals a mixed picture. While free cash flow has grown significantly, the operating cash flow to net income ratio is low, indicating potential cash flow issues. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	551.33M	551.33M	632.80M	775.64M	805.02M	629.52M
Gross Profit	207.43M	207.42M	246.07M	313.14M	316.64M	241.40M
EBITDA	-151.80M	-196.76M	38.26M	83.94M	92.52M	33.41M
Net Income	-191.78M	-191.78M	21.03M	54.36M	67.17M	25.23M
Balance Sheet
Total Assets	304.69M	304.69M	510.91M	532.00M	581.47M	520.64M
Cash, Cash Equivalents and Short-Term Investments	86.15M	86.15M	108.89M	116.78M	104.22M	74.39M
Total Debt	25.30M	25.30M	13.32M	17.73M	75.55M	73.95M
Total Liabilities	97.61M	97.61M	92.15M	117.48M	209.02M	191.10M
Stockholders Equity	207.08M	207.08M	418.76M	414.52M	372.45M	329.55M
Cash Flow
Free Cash Flow	16.19M	16.19M	20.78M	79.62M	46.48M	36.10M
Operating Cash Flow	18.90M	18.90M	21.92M	81.64M	49.44M	39.94M
Investing Cash Flow	-13.57M	-13.57M	-8.55M	3.94M	-2.96M	-3.84M
Financing Cash Flow	-27.73M	-27.73M	-20.71M	-71.91M	-13.37M	-59.46M

Resources Connection Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGP, the sentiment is Negative. The current price of 5.08 is below the 20-day moving average (MA) of 5.15, above the 50-day MA of 4.97, and below the 200-day MA of 6.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGP.

Resources Connection Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.35B	24.86	28.70%	0.96%	9.28%	44.19%
FC	70 Outperform	$255.24M	25.53	16.24%	―	-0.40%	-40.98%
ICFI	70 Outperform	$1.71B	16.17	10.77%	0.60%	-0.47%	10.03%
RGP	55 Neutral	$169.52M	―	-61.29%	8.27%	-12.87%	-1025.47%
FORR	48 Neutral	$199.80M	-2.23	-2.50%	―	-9.11%	-6082.17%
AERT	43 Neutral	$32.11M	-8.96	339.66%	―	-5.47%	-113.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Resources Connection Corporate Events

Resources Connection’s David White Resigns from Board

On August 3, 2025, David White resigned from his position as Lead Independent Director and a member of the Board of Directors at Resources Connection, Inc. to become the interim Executive Director of the NFL Players Association. Following his resignation, the Board reduced its size to 11 directors and appointed Roger Carlile as the Chair of the Compensation Committee. The Board decided not to appoint a new Lead Independent Director since Bob Pisano, the Chair of the Board, is independent. The company expressed gratitude for Mr. White’s contributions over his four years of service.

The most recent analyst rating on (RGP) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Resources Connection stock, see the RGP Stock Forecast page.

Resources Connection Declares Quarterly Cash Dividend

On July 30, 2025, Resources Connection, Inc.’s Board approved a quarterly cash dividend of $0.07 per share, payable on September 26, 2025, to stockholders recorded by August 29, 2025. This decision reflects the company’s ongoing commitment to shareholder returns and its stable financial position, reinforcing its standing in the professional services industry.

The most recent analyst rating on (RGP) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Resources Connection stock, see the RGP Stock Forecast page.

Resources Connection Secures $50M Credit Agreement

On July 2, 2025, Resources Connection, Inc., along with its subsidiaries, entered into a Credit Agreement with Bank of America, N.A., providing a secured revolving loan up to $50 million, with an option to increase by $15 million. The facility, maturing on November 30, 2029, aims to support working capital, corporate purposes, potential acquisitions, and refinance previous debt. The agreement includes covenants and conditions that could impact the company’s financial operations and obligations.

The most recent analyst rating on (RGP) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Resources Connection stock, see the RGP Stock Forecast page.