RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN - Nasdaq - US7625441040 - Common Stock - Currency: USD
RBBN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. RBBN has a bad profitability rating. Also its financial health evaluation is rather negative. RBBN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RBBN had positive earnings in the past year.
RBBN had a positive operating cash flow in the past year.
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
With a Return On Assets value of -4.40%, RBBN perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
RBBN's Return On Equity of -13.12% is on the low side compared to the rest of the industry. RBBN is outperformed by 61.22% of its industry peers.
RBBN has a Return On Invested Capital of 2.20%. This is comparable to the rest of the industry: RBBN outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -13.12% | ||
| ROIC | 2.2% |
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
The Operating Margin of RBBN (2.77%) is comparable to the rest of the industry.
RBBN's Operating Margin has improved in the last couple of years.
RBBN has a Gross Margin of 51.46%. This is in the better half of the industry: RBBN outperforms 67.35% of its industry peers.
RBBN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.77% | ||
| PM (TTM) | N/A | ||
| GM | 51.46% |
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.
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 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.54, 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 -0.54, RBBN is doing worse than 69.39% of the companies in the same industry.
RBBN has a debt to FCF ratio of 269.08. This is a negative value and a sign of low solvency as RBBN would need 269.08 years to pay back of all of its debts.
RBBN's Debt to FCF ratio of 269.08 is on the low side compared to the rest of the industry. RBBN is outperformed by 61.22% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that RBBN is somewhat dependend on debt financing.
The Debt to Equity ratio of RBBN (0.86) is worse than 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 269.08 | ||
| Altman-Z | -0.54 |
ROIC/WACC0.2
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.39 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a Current ratio of 1.39. This is in the lower half of the industry: RBBN underperforms 69.39% of its industry peers.
A Quick Ratio of 1.13 indicates that RBBN should not have too much problems paying its short term obligations.
The Quick ratio of RBBN (1.13) is worse than 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.00%, which is quite good.
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.
RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.91%.
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)15%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-200%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%0.9%
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 18.64% on average per year.
Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y4.45%
EPS Next 2Y18.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.15%
Revenue Next 2Y5.74%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.87, RBBN is valued correctly.
75.51% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
RBBN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 10.37, which indicates a very decent valuation of RBBN.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 83.67% of the companies in the same industry.
RBBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBBN is valued a bit cheaper than 75.51% of the companies in the same industry.
61.22% of the companies in the same industry are cheaper than RBBN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 513.31 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RBBN's earnings are expected to grow with 18.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.57
PEG (5Y)N/A
EPS Next 2Y18.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RBBN (5/22/2025, 2:32:31 PM)
3.65
+0.04 (+1.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner Change10.16%
Ins Owners2.19%
Ins Owner Change3.52%
Market Cap642.14M
Analysts81.67
Price Target6.02 (64.93%)
Short Float %1.47%
Short Ratio4
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)-3.06%
Min Revenue beat(2)-7.27%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-4.2%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-4.82%
Revenue beat(12)1
Avg Revenue beat(12)-4.15%
Revenue beat(16)1
Avg Revenue beat(16)-4.59%
PT rev (1m)-6.35%
PT rev (3m)0%
EPS NQ rev (1m)31.58%
EPS NQ rev (3m)25%
EPS NY rev (1m)-1.54%
EPS NY rev (3m)-7.25%
Revenue NQ rev (1m)1.61%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.77 | ||
| P/FCF | 513.31 | ||
| P/OCF | 19.11 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)0.23
EY6.3%
EPS(NY)0.35
Fwd EY9.64%
FCF(TTM)0.01
FCFY0.19%
OCF(TTM)0.19
OCFY5.23%
SpS4.75
BVpS2.17
TBVpS-0.54
PEG (NY)3.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -13.12% | ||
| ROCE | 2.79% | ||
| ROIC | 2.2% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 6.45% | ||
| OM | 2.77% | ||
| PM (TTM) | N/A | ||
| GM | 51.46% | ||
| FCFM | 0.15% |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 269.08 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 51.55% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 0.64 | ||
| Cash Conversion | 39.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | -0.54 |
F-Score6
WACC10.83%
ROIC/WACC0.2
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)15%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-200%
EPS Next Y4.45%
EPS Next 2Y18.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.91%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%0.9%
Revenue Next Year6.15%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y83.91%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year34.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y102.92%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y210.91%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%