(RDCM) Radcom - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 240m USD | Total Return: 10.6% in 12m
Avg Turnover: 3.31M
EPS Trend: 87.3%
Qual. Beats: 2
Rev. Trend: 99.9%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 20.2 → Forward 61.0
Tailwinds
Shakeout, Confidence
RADCOM Ltd. (RDCM) specializes in cloud-native network intelligence and 5G readiness solutions for global communication service providers. Its core offerings include the RADCOM ACE platform for automated assurance, AI-driven analytics through RADCOM AIM, and the RADCOM NWDAF solution for closed-loop network automation. The company recently expanded its portfolio to include RADCOM NetTalk, a Generative AI application designed to enhance network operations.
The business model relies on a direct sales force and a global distribution network to target telecommunications operators transitioning from legacy hardware to software-defined networking. This sector is characterized by high barriers to entry due to the technical complexity of integrating real-time monitoring across 5G, LTE, and Voice over New Radio (VoNR) infrastructures. As operators shift to containerized architectures, RADCOM’s vendor-agnostic approach allows its software to monitor traffic across diverse, multi-vendor cloud environments.
Investors can evaluate the companys long-term valuation metrics and historical growth trends on ValueRay. Founded in 1985 and headquartered in Israel, the company provides essential visibility tools that help mobile and fixed-line carriers maintain service quality while managing the increased data loads of next-generation networks.
- Accelerated 5G network rollouts drive demand for cloud-native automated assurance solutions
- High customer concentration with Tier-1 operators creates significant revenue volatility risk
- Integration of generative AI tools improves operational margins and software scalability
- Geopolitical instability in Israel poses potential disruption to core research and operations
- Expansion into RAN analytics captures growing service provider network visibility spending
| Net Income: 12.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.51 > 1.0 |
| NWC/Revenue: 155.4% < 20% (prev 147.4%; Δ 8.01% < -1%) |
| CFO/TA 0.10 > 3% & CFO 14.6m > Net Income 12.6m |
| Net Debt (-102.2m) to EBITDA (9.70m): -10.54 < 3 |
| Current Ratio: 6.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (17.1m) vs 12m ago 2.47% < -2% |
| Gross Margin: 75.99% > 18% (prev 0.75%; Δ 7.52k% > 0.5%) |
| Asset Turnover: 51.98% > 50% (prev 47.01%; Δ 4.97% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.77 (Total Current Assets 135.7m - Total Current Liabilities 21.5m) / Total Assets 147.7m |
| B: -0.32 (Retained Earnings -47.9m / Total Assets 147.7m) |
| C: 0.06 (EBIT TTM 9.02m / Avg Total Assets 141.4m) |
| D: -1.72 (Book Value of Equity -50.0m / Total Liabilities 29.1m) |
| Altman-Z'' = 2.64 = A |
| DSRI: 1.06 (Receivables 24.7m/20.1m, Revenue 73.5m/63.5m) |
| GMI: 0.98 (GM 75.99% / 74.66%) |
| AQI: 0.86 (AQ_t 0.06 / AQ_t-1 0.06) |
| SGI: 1.16 (Revenue 73.5m / 63.5m) |
| TATA: -0.01 (NI 12.6m - CFO 14.6m) / TA 147.7m) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 14.55 with a total of 151,567 shares traded.
Over the past week, the price has changed by -7.62%,
over one month by -7.74%,
over three months by +30.61% and
over the past year by +10.56%.
Radcom has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy RDCM.
- StrongBuy: 1
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18 | 23.7% |
P/E Trailing = 20.1972
P/E Forward = 60.9756
P/S = 3.3573
P/B = 2.3603
P/EG = 11.08
Revenue TTM = 73.5m USD
EBIT TTM = 9.02m USD
EBITDA TTM = 9.70m USD
Long Term Debt = 1.86m USD (estimated: total debt 2.97m - short term 1.11m)
Short Term Debt = 1.11m USD (from shortTermDebt, last quarter)
Debt = 6.20m USD (from shortLongTermDebtTotal, last quarter) + Leases 3.23m
Net Debt = -102.2m USD (calculated: Debt 6.20m - CCE 108.4m)
Enterprise Value = 137.8m USD (240.0m + Debt 6.20m - CCE 108.4m)
Interest Coverage Ratio = unknown (Ebit TTM 9.02m / Interest Expense TTM 0.0)
EV/FCF = 9.69x (Enterprise Value 137.8m / FCF TTM 14.2m)
FCF Yield = 10.32% (FCF TTM 14.2m / Enterprise Value 137.8m)
FCF Margin = 19.35% (FCF TTM 14.2m / Revenue TTM 73.5m)
Net Margin = 17.18% (Net Income TTM 12.6m / Revenue TTM 73.5m)
Gross Margin = 75.99% ((Revenue TTM 73.5m - Cost of Revenue TTM 17.6m) / Revenue TTM)
Gross Margin QoQ = 75.57% (prev 76.83%)
Tobins Q-Ratio = 0.93 (Enterprise Value 137.8m / Total Assets 147.7m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.20m)
Taxrate = 9.29% (315k / 3.39m)
NOPAT = 8.18m (EBIT 9.02m * (1 - 9.29%))
Current Ratio = 6.32 (Total Current Assets 135.7m / Total Current Liabilities 21.5m)
Debt / Equity = 0.05 (Debt 6.20m / totalStockholderEquity, last quarter 118.6m)
Debt / EBITDA = -10.54 (Net Debt -102.2m / EBITDA 9.70m)
Debt / FCF = -7.19 (Net Debt -102.2m / FCF TTM 14.2m)
Total Stockholder Equity = 111.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.93% (Net Income 12.6m / Total Assets 147.7m)
RoE = 7.93% (Net Income TTM 12.6m / Total Stockholder Equity 159.3m)
RoCE = 5.60% (EBIT 9.02m / Capital Employed (Equity 159.3m + L.T.Debt 1.86m))
RoIC = 43.18% (NOPAT 8.18m / Invested Capital 18.9m)
WACC = 9.48% (E(240.0m)/V(246.2m) * Re(9.72%) + D(6.20m)/V(246.2m) * Rd(0.0%) * (1-Tc(0.09)))
Discount Rate = 9.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 4.55%
[DCF] Terminal Value 74.41% ; FCFF base≈12.9m ; Y1≈14.8m ; Y5≈21.8m
[DCF] Fair Price = 22.46 (EV 273.7m - Net Debt -102.2m = Equity 375.9m / Shares 16.7m; r=9.48% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 87.34 | EPS CAGR: 63.40% | SUE: 3.23 | # QB: 2
Revenue Correlation: 99.89 | Revenue CAGR: 17.05% | SUE: -0.10 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.28 | Chg30d=+14.00% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=1.18 | Chg30d=+14.08% | Revisions=+33% | GrowthEPS=+7.8% | GrowthRev=+9.3%
EPS next Year (2027-12-31): EPS=1.28 | Chg30d=+25.49% | Revisions=+20% | GrowthEPS=+8.9% | GrowthRev=+9.8%
[Analyst] Revisions Ratio: +33%