2.795 USD
+0.17 (+6.68%)
Last: Feb 2, 2026, 01:17 PM
We assign a fundamental rating of 3 out of 10 to RBBN. RBBN was compared to 48 industry peers in the Communications Equipment industry. RBBN has a bad profitability rating. Also its financial health evaluation is rather negative. RBBN may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- Of the past 5 years RBBN 4 years had a positive operating cash flow.
1.2 Ratios
- RBBN has a Return On Assets of -3.90%. This is in the lower half of the industry: RBBN underperforms 60.42% of its industry peers.
- The Return On Equity of RBBN (-11.96%) is worse than 66.67% of its industry peers.
- With a Return On Invested Capital value of 3.55%, RBBN perfoms like the industry average, outperforming 58.33% 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
- RBBN's Operating Margin of 4.20% is in line compared to the rest of the industry. RBBN outperforms 58.33% of its industry peers.
- In the last couple of years the Operating Margin of RBBN has grown nicely.
- Looking at the Gross Margin, with a value of 50.62%, RBBN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- RBBN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RBBN has more shares outstanding
- RBBN has a worse debt/assets ratio than last year.
2.2 Solvency
- RBBN has an Altman-Z score of -0.65. 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 -0.65, RBBN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
- RBBN has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as RBBN would need 6.37 years to pay back of all of its debts.
- RBBN's Debt to FCF ratio of 6.37 is in line compared to the rest of the industry. RBBN outperforms 54.17% of its industry peers.
- A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
- RBBN has a Debt to Equity ratio of 0.91. This is in the lower half of the industry: RBBN underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.65 |
ROIC/WACC0.32
WACC11.01%
2.3 Liquidity
- RBBN has a Current Ratio of 1.43. 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 (1.43) is worse than 77.08% of its industry peers.
- RBBN has a Quick Ratio of 1.17. 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 (1.17) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.76% 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 7.38% in the last year.
- 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
- RBBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.72% yearly.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y-29.28%
EPS Next 2Y5.6%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year3.93%
Revenue Next 2Y4.83%
Revenue Next 3Y4.62%
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 12.70, the valuation of RBBN can be described as correct.
- Based on the Price/Earnings ratio, RBBN is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.32. RBBN is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.03, the valuation of RBBN can be described as very reasonable.
- 97.92% of the companies in the same industry are more expensive than RBBN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. RBBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
- 91.67% of the companies in the same industry are more expensive than RBBN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RBBN is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.39 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as RBBN's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
- No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 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 3 / 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 -29.28% in the next year.