Stock fact sheet · data as of
Resources Connection, Inc. (RGP): fair value, margin of safety and Wheel Score
Industrials · Consulting Services · United States · Speculative / Distressed
Is RGP undervalued?
RGP has a margin of safety of 58%: the stock closed at 2.73 on 16 Oct 2026 against a GLS average fair value of 6.46. 2 of the 2 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The average is built from just 2 models (DCF, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files RGP 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 RGP
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 | 8.80 | +222% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 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 | 4.12 | +51% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 2.36 | -14% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.00 | +376% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Resources Connection, Inc. scores only 2 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -21.1%, ROE -23.9%, ROA -15.8% - with debt at 0.13 times equity and negative free cash flow.
The dividend yield is high at 10.26% (payout ratio -21%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from On Demand Talent 45%, Consulting 41%, Outsourced Services 12% (quarter Q4 FY2026).
Institutional ownership scores 9/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 2 / 9 | ROIC | -21.1% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | -23.9% |
| Debt / equity | 0.13 | ROA | -15.8% |
| Free-cash-flow yield | -11.1% | Payout ratio | -21% |
| Institutions | 9 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Resources Connection, Inc. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 25/25, Health 4/20, Moat 4/15, Premium 17/20, Stability 10/20 - show where: Health (4/20) scores lowest.
Implied volatility is 71% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (17 of 20) because volatility this high usually comes with a reason. Chain open interest is 2,745 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 435k shares a day on a market cap of $95M, with a beta of 0.55 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 58% margin of safety | |
| Health | 4 / 20 | Piotroski 2/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 17 / 20 | implied volatility 71% | |
| Stability | 10 / 20 | 435k shares/day, $95M cap, beta 0.55 |
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 6 Jan 2027, 82 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Consulting Services
The 12 companies below are the closest to Resources Connection, Inc. by market cap within the Consulting Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
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| GLAI Global AI, Inc. | 0.8800 | - | - | 27No options | $137M |
| GLCP Global Leaders Corp | 1.00 | - | - | 26No options | $154M |
| EUBG Entrepreneur Universe Bright Group | 0.2515 | 0.6420 | +61% | 39No options | $43M |
| ACCL Acco Group Holdings Limited | 2.87 | 1.56 | -84% | 20No options | $40M |
| FORR Forrester Research, Inc. | 11.94 | 12.18 | +2% | 45Weak | $227M |
| AERT Aeries Technology, Inc | 6.60 | 11.76 | +44% | 39No options | $36M |
| PPHC Public Policy Holding Company, Inc. | 10.46 | 10.34 | -1% | 39No options | $263M |
| RYOJ rYojbaba Co., Ltd. Common Shares | 2.70 | 2.85 | +6% | 28No options | $31M |
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Start free See the Sunday ScanQuestions about RGP
Is RGP undervalued right now?
By the GLS models, yes: at 2.73 the stock is 58% below the average fair value of 6.46 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RGP and what does it mean?
RGP 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 RGP?
6.46 per share as of 16 Oct 2026 - the simple average of the 2 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 Resources Connection, Inc. report earnings next?
The next earnings report is due on 6 Jan 2027, 82 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RGP have listed options, and how liquid are they?
Yes. The nightly snapshot found 30 listed contracts with 2,745 open interest across all expiries and implied volatility of 71% 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.