Radcom Ltd. (RDCM) intrinsic value & 10-year financials
Radcom Ltd. (RDCM) has a Graham intrinsic value of $23.58 per share. Over the last 10 fiscal years revenue grew 26.5% a year to $71.5M, with an average return on invested capital of -1.9%.
- Graham intrinsic value
- $23.58
- Revenue (FY2025)
- $71.5M
- Revenue growth (10-yr CAGR)
- 26.5%
- ROIC (10-yr avg)
- -1.9%
- Free cash flow (FY2025)
- $14.2M
RDCM 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $71.5M | $12.0M | $0.71 | $14.2M | 11.6% | 9.6% |
| FY2024 | $61.0M | $7.0M | $0.43 | $11.0M | 5.1% | 4.0% |
| FY2023 | $51.6M | $3.7M | $0.24 | $4.5M | -1.3% | -0.9% |
| FY2022 | $19.0M | -$2.3M | -$0.16 | $5.9M | -21.7% | -6.6% |
| FY2021 | $15.3M | -$5.3M | -$0.37 | $1.6M | -35.8% | -9.2% |
| FY2020 | $17.7M | -$4.0M | -$0.29 | -$477.0K | -25.8% | -6.9% |
| FY2019 | $16.4M | -$6.8M | -$0.50 | $6.1M | -47.8% | -10.8% |
| FY2018 | $13.5M | -$2.4M | -$0.18 | -$2.6M | -25.8% | -3.7% |
| FY2017 | $7.5M | $2.9M | $0.23 | -$11.4M | 34.8% | 2.7% |
| FY2016 | $8.6M | $1.9M | $0.18 | $8.1M | 13.0% | 2.8% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
RADCOM LTD is a consistent compounder, expanding top-line revenue at 26.5% annually over the past decade.
RADCOM LTD has historically struggled to out-earn its cost of capital, averaging just -2.4% ROIC.
RADCOM LTD has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, RADCOM LTD is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $23.58 per share.