Stock fact sheet · data as of
RADCOM Ltd. (RDCM): fair value, margin of safety and Wheel Score
Communication Services · Telecommunications Services · Israel · Speculative / Distressed
Is RDCM undervalued?
RDCM closed at 10.04 on 16 Oct 2026, 19% below the GLS average fair value of 12.37 from 6 models (3 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 20 of the 25 Value points.
The 6 models disagree widely: DCF gives 1.16 while GLS Growth gives 25.73. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RDCM under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for RDCM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1.16 | -88% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 8.12 | -19% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 24.04 | +139% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.51 | +5% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 25.73 | +156% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 4.67 | -53% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 6.07 | -40% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 11.25 | +12% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: RDCM passes 3 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 5.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 10.2%, ROE 10.5%, ROA 8.3% - with debt at 0.03 times equity and negative free cash flow.
RADCOM Ltd. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Product 52%, Service 48% (fiscal year FY2025).
Institutional ownership scores 6/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 10.2% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 10.5% |
| Debt / equity | 0.03 | ROA | 8.3% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 6 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 45: Weak
RDCM scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 20/25, Health 7/20, Moat 8/15, Premium 20/20, Stability 6/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 54% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 560 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 111k shares a day on a market cap of $168M, with a beta of 0.77 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 20 / 25 | 19% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 20 / 20 | implied volatility 54% | |
| Stability | 6 / 20 | 111k shares/day, $168M cap, beta 0.77 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Nov 2026 (before the open), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to RADCOM Ltd. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CHTRP Charter Communications, Inc. Series A Cumulative Redeemable Preferred Stock | 22.10 | 471.70 | +95% | 39No options | $159M |
| CXDO Crexendo, Inc. | 5.65 | 6.16 | +8% | 51Fair | $188M |
| LICT LICT Corporation | 13,000.00 | 8,752.47 | -49% | 27No options | $249M |
| OPTU Optimum Communications, Inc. | 0.9583 | 15.10 | +94% | 45Weak | $261M |
| GOGO Gogo Inc. | 2.25 | 14.88 | +85% | 45Weak | $305M |
| NUVR Nuvera Communications, Inc. | 16.00 | 8.63 | -85% | 20No options | $84M |
| TMUSZ T-Mobile US, Inc. 5.5 % Notes 2025-01.03.70 | 17.80 | 79.07 | +77% | 31No options | $356M |
| ATNI ATN International, Inc. | 25.86 | 84.76 | +69% | 67Good | $398M |
| CCOI Cogent Communications Holdings, Inc. | 8.35 | 650.62 | +99% | 45Weak | $428M |
| KNIT Kinetic Group Inc. | 2.00 | - | - | 22No options | $53M |
| OOMA Ooma, Inc. | 20.48 | 16.31 | -26% | 50Fair | $565M |
| SHEN Shenandoah Telecommunications Company | 10.42 | 1.62 | -544% | 39Weak | $577M |
⚖ Compare RDCM with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about RDCM
Is RDCM undervalued right now?
By the GLS models, moderately: at 10.04 the stock trades 19% below the average fair value of 12.37 (data as of 16 Oct 2026).
What is the Wheel Score of RDCM and what does it mean?
RDCM scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RDCM?
12.37 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does RADCOM Ltd. report earnings next?
The next earnings report is due on 11 Nov 2026 (before the open), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RDCM have listed options, and how liquid are they?
Yes. The nightly snapshot found 88 listed contracts with 560 open interest across all expiries and implied volatility of 54% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.