RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
2.06 USD
-0.02 (-0.96%)
At close: Feb 23, 2026
2.06 USD
0 (0%)
After Hours: 2/23/2026, 4:04:33 PM
RBBN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of RBBN while its profitability can be described as average. RBBN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- RBBN had positive earnings in the past year.
- In the past year RBBN had a positive cash flow from operations.
- RBBN had negative earnings in 4 of the past 5 years.
- RBBN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RBBN has a better Return On Assets (3.27%) than 68.75% of its industry peers.
- RBBN's Return On Equity of 8.83% is fine compared to the rest of the industry. RBBN outperforms 75.00% of its industry peers.
- The Return On Invested Capital of RBBN (1.82%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROIC | 1.82% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- RBBN has a better Profit Margin (4.69%) than 68.75% of its industry peers.
- RBBN's Profit Margin has declined in the last couple of years.
- RBBN has a Operating Margin (2.45%) which is in line with its industry peers.
- RBBN's Operating Margin has declined in the last couple of years.
- RBBN's Gross Margin of 49.81% is fine compared to the rest of the industry. RBBN outperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of RBBN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% |
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBBN is destroying value.
- Compared to 1 year ago, RBBN has more shares outstanding
- RBBN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RBBN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.59, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.59, RBBN is doing worse than 66.67% of the companies in the same industry.
- RBBN has a debt to FCF ratio of 12.79. This is a negative value and a sign of low solvency as RBBN would need 12.79 years to pay back of all of its debts.
- RBBN has a Debt to FCF ratio (12.79) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.72 indicates that RBBN is somewhat dependend on debt financing.
- RBBN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: RBBN underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | -0.59 |
ROIC/WACC0.2
WACC9.08%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that RBBN should not have too much problems paying its short term obligations.
- RBBN has a Current ratio of 1.44. This is in the lower half of the industry: RBBN underperforms 77.08% of its industry peers.
- RBBN has a Quick Ratio of 1.19. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RBBN (1.19) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
- RBBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
- The Revenue has been growing slightly by 1.28% in the past year.
- RBBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
3.2 Future
- Based on estimates for the next years, RBBN will show a very negative growth in Earnings Per Share. The EPS will decrease by -23.80% on average per year.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 3.17, which indicates a rather cheap valuation of RBBN.
- 100.00% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
- RBBN is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- RBBN is valuated cheaply with a Price/Forward Earnings ratio of 7.39.
- RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.02. RBBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.17 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 87.50% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 85.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
- A cheap valuation may be justified as RBBN's earnings are expected to decrease with -23.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-23.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
2.06
-0.02 (-0.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-27 2026-04-27
Inst Owners75.04%
Inst Owner Change1.6%
Ins Owners2.6%
Ins Owner Change0.54%
Market Cap363.80M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (184.95%)
Short Float %2.42%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)200.59%
Min EPS beat(2)-32.77%
Max EPS beat(2)433.95%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)-4.04%
Revenue beat(4)1
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)2
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-200%
EPS NQ rev (3m)-200%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-11.59%
Revenue NQ rev (3m)-11.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.17 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.43 | ||
| P/FCF | 13.96 | ||
| P/OCF | 7.08 | ||
| P/B | 0.81 | ||
| P/tB | 76.46 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)0.65
EY31.55%
EPS(NY)0.28
Fwd EY13.53%
FCF(TTM)0.15
FCFY7.16%
OCF(TTM)0.29
OCFY14.13%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.33
Graham Number6.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROCE | 2.31% | ||
| ROIC | 1.82% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 4.59% | ||
| OM | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% | ||
| FCFM | 3.09% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-15.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.29%
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 41.6% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.99% | ||
| Profit Quality | 65.74% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | -0.59 |
F-Score7
WACC9.08%
ROIC/WACC0.2
Cap/Depr(3y)30.15%
Cap/Depr(5y)25.74%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3YN/A
EBIT growth 5Y-10.05%
EBIT Next Year47.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.81%
FCF growth 3YN/A
FCF growth 5Y-19.04%
OCF growth 1Y2.3%
OCF growth 3YN/A
OCF growth 5Y-12.74%
RIBBON COMMUNICATIONS INC / RBBN FAQ
What is the fundamental rating for RBBN stock?
ChartMill assigns a fundamental rating of 4 / 10 to RBBN.
What is the valuation status for RBBN stock?
ChartMill assigns a valuation rating of 7 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Undervalued.
Can you provide the profitability details for RIBBON COMMUNICATIONS INC?
RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for RBBN stock?
The Earnings per Share (EPS) of RIBBON COMMUNICATIONS INC (RBBN) is expected to decline by -57.11% in the next year.