RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN - US7625441040 - Common Stock
3.99 USD
-0.17 (-4.09%)
3.99 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RBBN. RBBN was compared to 48 industry peers in the Communications Equipment industry. While RBBN is still in line with the averages on profitability rating, there are concerns on its financial health. RBBN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years RBBN reported 4 times negative net income.
Of the past 5 years RBBN 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -3.89%, RBBN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
RBBN has a Return On Equity of -11.98%. This is in the lower half of the industry: RBBN underperforms 62.50% of its industry peers.
With a decent Return On Invested Capital value of 3.11%, RBBN is doing good in the industry, outperforming 60.42% of the companies in the same 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
RBBN has a better Operating Margin (3.78%) than 60.42% of its industry peers.
In the last couple of years the Operating Margin of RBBN has grown nicely.
The Gross Margin of RBBN (51.12%) is better than 68.75% of its industry peers.
RBBN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
RBBN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RBBN has been increased compared to 5 years ago.
RBBN has a worse debt/assets ratio than last year.
2.2 Solvency
RBBN has an Altman-Z score of -0.45. 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 -0.45, RBBN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
RBBN has a debt to FCF ratio of 43.32. This is a negative value and a sign of low solvency as RBBN would need 43.32 years to pay back of all of its debts.
RBBN has a Debt to FCF ratio of 43.32. This is comparable to the rest of the industry: RBBN outperforms 41.67% 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.
The Debt to Equity ratio of RBBN (0.88) is worse than 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 43.32 | ||
| Altman-Z | -0.45 |
ROIC/WACC0.29
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.38 indicates that RBBN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, RBBN is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that RBBN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, RBBN is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.52%, 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 7.68%.
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.
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 rather expensively with a Price/Earnings ratio of 17.35.
Compared to the rest of the industry, the Price/Earnings ratio of RBBN indicates a somewhat cheap valuation: RBBN is cheaper than 77.08% of the companies listed in the same industry.
RBBN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 11.62, the valuation of RBBN can be described as reasonable.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (22.69), we can say RBBN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a somewhat cheap valuation: RBBN is cheaper than 79.17% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBBN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.99 | ||
| EV/EBITDA | 10.39 |
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 |
3.99
-0.17 (-4.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.4%
Inst Owner Change0.56%
Ins Owners2.6%
Ins Owner Change9.94%
Market Cap706.55M
Analysts81.54
Price Target6.2 (55.39%)
Short Float %2.19%
Short Ratio6.05
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)1.39%
PT rev (3m)3.11%
EPS NQ rev (1m)-14.63%
EPS NQ rev (3m)-25.22%
EPS NY rev (1m)-5.77%
EPS NY rev (3m)-4.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 11.62 | ||
| P/S | 0.82 | ||
| P/FCF | 90.99 | ||
| P/OCF | 16.59 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.39 |
EPS(TTM)0.23
EY5.76%
EPS(NY)0.34
Fwd EY8.61%
FCF(TTM)0.04
FCFY1.1%
OCF(TTM)0.24
OCFY6.03%
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 | -0.45 |
F-Score6
WACC10.72%
ROIC/WACC0.29
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%