Value
7.5/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 3.5 |
| P/S | 8.2 |
| EV/EBITDA | 4.2 |
| Fwd P/E | 9.6 |
| PEG | 10.0 |
| Analyst target | 7.5 |
- ▸Forward P/E: 7.6x
- ▸PEG: 0.07
- ▸Attractively valued
RPC · Why this verdict
Why Ridgepost Capital (RPC) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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VerdictHOLD
Overall score6.3/10
ConfidenceMEDIUM
MacroRISK_OFF
TrendMatrix Research · core thesis
Engine thesis — one sentence
RPC offers a statistically cheap valuation and a strong earnings track record, and the risk-adjusted math points to significant upside, but a confirmed price downtrend and elevated leverage keep the setup a hold rather than an add.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
RPC trades at a forward P/E of 6.5x and a PEG ratio of 0.07, and its risk-adjusted asymmetry ratio of 5.88 implies over 46% upside against roughly 8% downside. Valuation breakdown | The risk-adjusted asymmetry ratio should stay elevated above 2 and price should close toward the analyst target over the next 12 months. | ↓Deteriorating |
| CounterA PEG this low can signal the market doubts the sustainability of RPC's growth rate rather than mispricing it. | ||
RPC has beaten consensus estimates in 3 of its last 4 quarters, with an average surprise near 8%, supporting the case for continued execution. Earnings | The beat rate should stay at or above 3 of 4 quarters through the next print on 2026-08-06. | →Stable |
| CounterThe most recent quarter came in only in-line, suggesting the beat streak may already be decelerating. | ||
RPC trades below its 200-day moving average with the average sloping down 6.2% over 30 days, a confirmed downtrend paired with a hard-block death cross. Momentum breakdown | Price should reclaim the 200-day moving average and the moving-average slope should turn positive within 12 months. | ↓Deteriorating |
| CounterA confirmed downtrend combined with a hard-block momentum reading can persist well beyond a single year, especially for a small-cap name. | ||
RPC carries a debt-to-equity ratio of 1.0 that is penalized directly in the scoring, adding balance-sheet risk on top of the existing momentum weakness. Bear case | The debt-to-equity ratio should decline from 1.0 over the next year as the balance sheet delevers. | →Stable |
| CounterA D/E of 1.0 is not unusually high for an asset manager and may not meaningfully constrain the business even if it persists. | ||
RPC trades at a forward P/E of 6.5x and a PEG ratio of 0.07, and its risk-adjusted asymmetry ratio of 5.88 implies over 46% upside against roughly 8% downside.
↓DeterioratingValuation breakdown
- Expectation
- The risk-adjusted asymmetry ratio should stay elevated above 2 and price should close toward the analyst target over the next 12 months.
CounterA PEG this low can signal the market doubts the sustainability of RPC's growth rate rather than mispricing it.
RPC has beaten consensus estimates in 3 of its last 4 quarters, with an average surprise near 8%, supporting the case for continued execution.
→StableEarnings
- Expectation
- The beat rate should stay at or above 3 of 4 quarters through the next print on 2026-08-06.
CounterThe most recent quarter came in only in-line, suggesting the beat streak may already be decelerating.
RPC trades below its 200-day moving average with the average sloping down 6.2% over 30 days, a confirmed downtrend paired with a hard-block death cross.
↓DeterioratingMomentum breakdown
- Expectation
- Price should reclaim the 200-day moving average and the moving-average slope should turn positive within 12 months.
CounterA confirmed downtrend combined with a hard-block momentum reading can persist well beyond a single year, especially for a small-cap name.
RPC carries a debt-to-equity ratio of 1.0 that is penalized directly in the scoring, adding balance-sheet risk on top of the existing momentum weakness.
→StableBear case
- Expectation
- The debt-to-equity ratio should decline from 1.0 over the next year as the balance sheet delevers.
CounterA D/E of 1.0 is not unusually high for an asset manager and may not meaningfully constrain the business even if it persists.
Per-dimension breakdown
Quality
6.8/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 2.4 |
| ROA | 3.9 |
| Gross margin | 7.1 |
| Op margin | 10.0 |
| Net margin | 4.4 |
| Current ratio | 8.1 |
| FCF quality | 10.0 |
| Moat | 6.4 |
| Piotroski F | 8.9 |
- ▸Excellent cash conversion: 194% FCF/NI
- ▸Strong Piotroski F-Score: 8/9
Growth
7.7/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 5.3 |
| EPS growth | 10.0 |
Momentum
4.7/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 7.9 |
| OBV | 1.0 |
| MA position | 8.0 |
| Volume | 2.3 |
- ▸Overbought (RSI 71)
- ▸Volume distribution (falling OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 6.3 |
| Price target | 9.4 |
| erm sentiment | 6.1 |
- ▸Light analyst coverage (4.0) — signal dampened
- ▸Analyst upside: 46%
Insider
7.3/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 10.0 |
| notable moves | 7.0 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
- ▸Institutions accumulating
Peer rank
3.9/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.3 |
| quality rank | 2.6 |
| growth rank | 6.8 |
Technical
2.7/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.8 |
| support resistance | 0.9 |
| 52w position | 5.4 |
Risk (lower is worse)
4.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.3 |
| days to cover | 3.4 |
| volatility | 3.7 |
| implied vol | 0.0 |
| beta | 7.7 |
| debt equity | 5.0 |
- ▸High IV: 134%
- ▸Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.8/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 6.5 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 5.7 |
| dividend safety | 7.0 |
- ▸Earnings in 5 days
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (7)
- MOMENTUM:4.7>=4.5
- ASYMMETRY:1.6>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- DEATH_CROSS:HARD_BLOCK
- EARNINGS_PROXIMITY:5d<=7d
Warning (1)
- MOMENTUM:4.7<5.5 (soft — BUY_NOW allowed but watch)
Reward-to-Risk
1.61
Upside
+24.1%
Downside
15.0%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 71
EdgeInst Constrain — Small cap ($1.0B) below institutional reach
SuitabilityAggressive — MCap $1.0B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:4.7>=4.5. Top dim: Growth at 7.7; weakest: Technical at 2.7. No conviction either direction.
The strongest dimensions are Growth at 7.7, Value at 7.5, and Sentiment at 7.3; the weakest are Technical at 2.7, Peer rank at 3.9, and Risk (lower is worse) at 4.5. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 1.61 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Deep Value With High Asymmetry
Trip ifThe risk-adjusted asymmetry ratio falls below 2, or the stock trades more than 10% below the current price of $7.83.
- P2Earnings Beat Streak Support
Trip ifRPC misses consensus EPS by more than 0% (a miss) in the next reported quarter.
- P3Confirmed Price Downtrend
Trip ifPrice fails to close above the 200-day moving average within 2 quarters.
- P4Leverage Risk Penalty
Trip ifDebt-to-equity rises above 1.3.