RM plc is a software-application business based in the UK. RM shares (RM.LSE) are listed on the London Stock Exchange (LSE) and all prices are listed in pence sterling. Its last market close was 230p – a decrease of 2.13% over the previous week. RM employs 1,817 staff and has a trailing 12-month revenue of around £207.5 million.
Since the stock market crash in March caused by coronavirus, RM's share price has had significant negative movement.
Its last market close was 230p, which is 20.69% down on its pre-crash value of 290p and 109.09% up on the lowest point reached during the March crash when the shares fell as low as 110p.
If you had bought £1,000 worth of RM shares at the start of February 2020, those shares would have been worth £386.76 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £801.39.
|Latest market close||230p|
|52-week range||110p - 288.896p|
|50-day moving average||203.1324p|
|200-day moving average||207.1231p|
|Wall St. target price||241.33p|
|Dividend yield||0.08p (1.48%)|
|Earnings per share (TTM)||16.6p|
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|3 months (2020-10-22)||29.53%|
Valuing RM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of RM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
RM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, RM shares trade at around 13x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
RM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £25 million.
The EBITDA is a measure of a RM's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£207.5 million|
|Operating margin TTM||10.4%|
|Gross profit TTM||£91.6 million|
|Return on assets TTM||8.99%|
|Return on equity TTM||31.08%|
|Market capitalisation||£184.5 million|
TTM: trailing 12 months
Dividend payout ratio: 3529.41% of net profits
Recently RM has paid out, on average, around 3529.41% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.48% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), RM shareholders could enjoy a 1.48% return on their shares, in the form of dividend payments. In RM's case, that would currently equate to about 0.08p per share.
RM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 12 March 2020 (the "ex-dividend date").
RM's shares were split on a 7:8 basis on 20 March 2014. So if you had owned 8 shares the day before before the split, the next day you'd have owned 7 shares. This wouldn't directly have changed the overall worth of your RM shares – just the quantity. However, indirectly, the new 14.3% higher share price could have impacted the market appetite for RM shares which in turn could have impacted RM's share price.
Over the last 12 months, RM's shares have ranged in value from as little as 110p up to 288.896p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while RM's is 1.4088. This would suggest that RM's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally. The company operates through three divisions: RM Resources, RM Results, and RM Education. The RM Resources division provides curriculum and education resources for schools and nurseries through direct sales force, online, and direct catalogue. The RM Results division provides IT software and digital assessment services. It offers IT software and services to enable online exam marking, online testing, and management and analysis of educational data. The RM Education division supplies IT software and services to schools and colleges. This division provides IT outsourcing services; cloud-based products; and digital platforms. RM plc was founded in 1973 and is based in Abingdon, the United Kingdom.
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