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RADCOM

RDCM
63
Telecommunications Services · Communication Services
Price
$13.89
+0.35 (+2.58%)
Market Cap
$232.5M
Exchange
NASDAQ
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+19.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 14.1M (2021) → 16.8M (2025)

RADCOM Ltd. provides 5G ready cloud-native network intelligence and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+57.1% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$20M/ year

↑ Rising (+7% vs prior year)

27.8% of revenue

2.3x the sector average (12%)

Investing heavily in future products and technology

Insider Activity

22.4%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$30M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

RADCOM is putting 28% of revenue into R&D and that number is rising. That's 2.3x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
76.8%
Premium pricing power — 76.8% gross margin
Operating Margin
14.2%
Healthy — 14.2% operating margin
ROCE
2.4%
Weak — 2.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+17.2%
Fast-growing sales (17.2% YoY)
EPS YoY
+66.1%
Earnings growing fast (66.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
0%
Weak — only 0% of profit becomes cash
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
100.00x
—
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
19.0x
Fair value — P/E 19.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+7.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (19.0 → 11.9)

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Dividends

Not applicable for this business.
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