Stock fact sheet · data as of
RADCOM Ltd. (RDCM): fair value, margin of safety and Wheel Score
Ticker symbol RDCM · Communication Services · Telecommunications Services · Israel · Speculative
Is RDCM undervalued?
RDCM closed at 10.17 on 5 Nov 2026, 18% 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" Wheel Trade Filter, with room for a bigger discount on the Value part.
The 6 models disagree widely: DCF gives 1.14 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 - it is losing money or its Piotroski health score is 3 or lower - 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 | 1.14 | -89% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 8.12 | -20% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 24.04 | +136% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.51 | +3% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 25.73 | +153% | 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 | -54% | 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 | +11% | 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 scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 4.1 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
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 | 4.1 / 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 35: Weak
RDCM scores 35 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (302 open interest, 59 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 8, big enough - market cap $170M (under $1.0B), and the parts are thin too - value fair, premium strong, moat fair, health weak, red flags weak, option trading weak, stability fair. 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 59% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 302 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 44k shares a day on a market cap of $170M, 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 rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (302 open interest, 59 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $170M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Fair | 18% below fair value | |
| Premium | Strong | implied volatility 59% | |
| Moat | Fair | moat 4.1/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Weak | Red Flags score 65/100 | |
| Option trading | Weak | 59 contracts a day, 302 open interest | |
| Stability | Fair | beta 0.77, $170M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
RADCOM Ltd. reports earnings on 11 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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.
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|---|---|---|---|---|---|
| CXDO Crexendo, Inc. | 5.24 | 5.73 | +9% | 37Weak | $174M |
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| OPTU Optimum Communications, Inc. | 0.6843 | 15.49 | +96% | 30Weak | $187M |
| LICT LICT Corporation | 12,200.00 | 8,752.47 | -39% | 20No options | $234M |
| GOGO Gogo Inc. | 2.53 | 14.49 | +83% | 35Weak | $343M |
| CCOI Cogent Communications Holdings, Inc. | 6.79 | 930.81 | +99% | 32Weak | $348M |
| NUVR Nuvera Communications, Inc. | 15.67 | 8.63 | -82% | 16No options | $82M |
| TMUSZ T-Mobile US, Inc. 5.5 % Notes 2025-01.03.70 | 18.28 | 127.07 | +86% | 26No options | $366M |
| ATNI ATN International, Inc. | 25.79 | 85.52 | +70% | 48Weak | $397M |
| OOMA Ooma, Inc. | 19.01 | 16.48 | -15% | 33Weak | $525M |
| KNIT Kinetic Group Inc. | 2.00 | - | - | 11No options | $53M |
| SHEN Shenandoah Telecommunications Company | 10.39 | 1.77 | -488% | 20Weak | $575M |
⚖ 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 10.17 the stock trades 18% below the average fair value of 12.37 (data as of 5 Nov 2026).
What is the Wheel Score of RDCM and what does it mean?
RDCM scores 35 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RDCM?
12.37 per share as of 5 Nov 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), 6 days from the data date of 5 Nov 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 18 listed contracts with 302 open interest across all expiries and implied volatility of 59% 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.