Well, there are some goods things and bad things about RST stock.
First, the good news.
The company has a very strong balance sheet, including having no debt; on a free cash flow basis, the company earned $0.26 per share versus a -0.45 earnings per share loss. As earnings per share are based on accrual accounting, it is the best way to see a company's true cash profitabilty; hence, my use of free cash flow. it's better to follow the cash.
Sales over the past 7 years has grown 49.51% annualized.
Now, for the bad news.
The stock has a price to free cash flow ratio is 47.27 versus a P/E ratio of -26.91. The former ratio is definitely that of a growth stock, though the company is really a small cap value company.
The 47.27 multiple is somewhat confirmed by the company's forward P/E ratio of about 41.76.
Finally, based on my preliminary discounted cash flow model, I give the stock a fair value of about $13.88 versus yesterday's closing price of $12.37. So, on this basis, the stock is pretty close to being fairly valued.
As I mentioned earlier, there are good things and bad things about this stock. However, in the end, I don't see this stock as a potential buy and a candidate for further due diligence.