RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
3.86 USD
+0.09 (+2.39%)
3.8986 USD
+0.04 (+1%)
RBBN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. RBBN has a bad profitability rating. Also its financial health evaluation is rather negative. RBBN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RBBN was profitable.
RBBN had a positive operating cash flow in the past year.
In the past 5 years RBBN reported 4 times negative net income.
RBBN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -3.89%, RBBN is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
RBBN's Return On Equity of -11.98% is on the low side compared to the rest of the industry. RBBN is outperformed by 62.50% of its industry peers.
RBBN has a Return On Invested Capital (3.11%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.89% | ||
| ROE | -11.98% | ||
| ROIC | 3.11% |
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 3.78%, 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 51.12% 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 | 3.78% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% |
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
RBBN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RBBN has been increased compared to 1 year ago.
RBBN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RBBN has a worse debt to assets ratio.
2.2 Solvency
RBBN has an Altman-Z score of -0.47. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RBBN (-0.47) is worse than 68.75% of its industry peers.
The Debt to FCF ratio of RBBN is 43.32, which is on the high side as it means it would take RBBN, 43.32 years of fcf income to pay off all of its debts.
RBBN's Debt to FCF ratio of 43.32 is in line compared to the rest of the industry. RBBN outperforms 43.75% of its industry peers.
RBBN has a Debt/Equity ratio of 0.88. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, RBBN is doing worse than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 43.32 | ||
| Altman-Z | -0.47 |
ROIC/WACC0.3
WACC10.47%
2.3 Liquidity
RBBN has a Current Ratio of 1.38. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RBBN (1.38) is worse than 77.08% of its industry peers.
A Quick Ratio of 1.14 indicates that RBBN should not have too much problems paying its short term obligations.
The Quick ratio of RBBN (1.14) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% over the past year.
Measured over the past years, RBBN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.59% on average per year.
Looking at the last year, RBBN shows a small growth in Revenue. The Revenue has grown by 7.68% in the last year.
The Revenue has been growing by 8.17% on average over the past years. This is quite good.
EPS 1Y (TTM)9.52%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%0%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%14.52%
3.2 Future
The Earnings Per Share is expected to grow by 17.20% on average over the next years. This is quite good.
Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 16.78, the valuation of RBBN can be described as correct.
79.17% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (27.86), we can say RBBN is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.24, which indicates a very decent valuation of RBBN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBBN is valued a bit cheaper than 77.08% of the companies in the same industry.
RBBN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.03 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RBBN's earnings are expected to grow with 17.20% in the coming years.
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 |
3.86
+0.09 (+2.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change0%
Ins Owners2.49%
Ins Owner Change5.97%
Market Cap683.53M
Analysts81.54
Price Target6.2 (60.62%)
Short Float %2.32%
Short Ratio5.84
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)-2.96%
Min Revenue beat(2)-7.27%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-7.27%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-4.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.88%
Revenue beat(16)2
Avg Revenue beat(16)-4.18%
PT rev (1m)0%
PT rev (3m)3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.79 | ||
| P/FCF | 88.03 | ||
| P/OCF | 16.05 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)0.23
EY5.96%
EPS(NY)0.34
Fwd EY8.9%
FCF(TTM)0.04
FCFY1.14%
OCF(TTM)0.24
OCFY6.23%
SpS4.88
BVpS2.09
TBVpS-0.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.89% | ||
| ROE | -11.98% | ||
| ROCE | 3.94% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 8.53% | ||
| OM | 3.78% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% | ||
| FCFM | 0.9% |
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
ROICexcg growth 3Y14.11%
ROICexcg 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-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 43.32 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 56.27% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 45.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.47 |
F-Score6
WACC10.47%
ROIC/WACC0.3
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)9.52%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%0%
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%14.52%
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y127.01%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year31.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y268.8%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y545.27%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%