RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
3.21 USD
-0.15 (-4.46%)
Taking everything into account, RBBN scores 3 out of 10 in our fundamental rating. RBBN was compared to 48 industry peers in the Communications Equipment industry. RBBN may be in some trouble as it scores bad on both profitability and health. RBBN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RBBN was profitable.
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
The Return On Assets of RBBN (-3.90%) is worse than 60.42% of its industry peers.
RBBN has a worse Return On Equity (-11.96%) than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 3.55%, RBBN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.9% | ||
| ROE | -11.96% | ||
| ROIC | 3.55% |
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 4.20%, RBBN is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
In the last couple of years the Operating Margin of RBBN has grown nicely.
RBBN's Gross Margin of 50.62% is fine compared to the rest of the industry. RBBN outperforms 68.75% 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 | 4.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.62% |
OM growth 3Y16.11%
OM growth 5Y34.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.05%
GM growth 5Y-1.31%
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
Compared to 5 years ago, RBBN has more shares outstanding
Compared to 1 year ago, RBBN has a worse debt to assets ratio.
2.2 Solvency
RBBN has an Altman-Z score of -0.55. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.55, RBBN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
The Debt to FCF ratio of RBBN is 6.37, which is on the high side as it means it would take RBBN, 6.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.37, RBBN is in line with its industry, outperforming 50.00% of the companies in the same industry.
RBBN has a Debt/Equity ratio of 0.91. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
RBBN's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. RBBN is outperformed by 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.55 |
ROIC/WACC0.35
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a Current ratio of 1.43. This is in the lower half of the industry: RBBN underperforms 72.92% of its industry peers.
A Quick Ratio of 1.16 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a worse Quick ratio (1.16) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.76% over the past year.
The earnings per share for RBBN have been decreasing by -12.59% on average. This is quite bad
RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
Measured over the past years, RBBN shows a quite strong growth in Revenue. The Revenue has been growing by 8.17% on average per year.
EPS 1Y (TTM)4.76%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-20%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
3.2 Future
Based on estimates for the next years, RBBN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.20% on average per year.
RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.83% yearly.
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RBBN is valuated correctly with a Price/Earnings ratio of 14.59.
79.17% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, RBBN is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.35, which indicates a very decent valuation of RBBN.
97.92% of the companies in the same industry are more expensive than RBBN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (22.53), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RBBN is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
RBBN's earnings are expected to grow with 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RBBN (11/4/2025, 2:11:05 PM)
3.21
-0.15 (-4.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change-0.03%
Ins Owners2.49%
Ins Owner Change6.73%
Market Cap568.43M
Revenue(TTM)868.59M
Net Income(TTM)-43065000
Analysts81.54
Price Target5.87 (82.87%)
Short Float %2.11%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-20.43%
Min EPS beat(2)-32.77%
Max EPS beat(2)-8.08%
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)1
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-7.27%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-3.72%
Revenue beat(12)2
Avg Revenue beat(12)-3.63%
Revenue beat(16)2
Avg Revenue beat(16)-4.04%
PT rev (1m)-5.48%
PT rev (3m)-4.17%
EPS NQ rev (1m)-25.77%
EPS NQ rev (3m)-20.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.77%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 9.35 | ||
| P/S | 0.65 | ||
| P/FCF | 10.81 | ||
| P/OCF | 6.77 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.75 |
EPS(TTM)0.22
EY6.85%
EPS(NY)0.34
Fwd EY10.7%
FCF(TTM)0.3
FCFY9.25%
OCF(TTM)0.47
OCFY14.76%
SpS4.91
BVpS2.03
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.9% | ||
| ROE | -11.96% | ||
| ROCE | 4.49% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 10.16% | ||
| OM | 4.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.62% | ||
| FCFM | 6.05% |
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
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 3Y14.11%
ROICexgc growth 5Y27.22%
ROICexc growth 3Y23.03%
ROICexc growth 5Y37.6%
OM growth 3Y16.11%
OM growth 5Y34.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.05%
GM growth 5Y-1.31%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 51.25% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | -0.55 |
F-Score7
WACC10.21%
ROIC/WACC0.35
Cap/Depr(3y)22.21%
Cap/Depr(5y)24.26%
Cap/Sales(3y)1.85%
Cap/Sales(5y)2.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.76%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-20%
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y183.46%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year31.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y802.2%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y543.21%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%
RIBBON COMMUNICATIONS INC / RBBN FAQ
What is the fundamental rating for RBBN stock?
ChartMill assigns a fundamental rating of 3 / 10 to RBBN.
What is the valuation status of RIBBON COMMUNICATIONS INC (RBBN) stock?
ChartMill assigns a valuation rating of 6 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Fairly Valued.
Can you provide the profitability details for RIBBON COMMUNICATIONS INC?
RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 3 / 10.
What is the financial health of RIBBON COMMUNICATIONS INC (RBBN) stock?
The financial health rating of RIBBON COMMUNICATIONS INC (RBBN) is 2 / 10.
What is the expected EPS growth for RIBBON COMMUNICATIONS INC (RBBN) stock?
The Earnings per Share (EPS) of RIBBON COMMUNICATIONS INC (RBBN) is expected to decline by -0.04% in the next year.