Logo image of RBBN

RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis

NASDAQ:RBBN - Nasdaq - US7625441040 - Common Stock - Currency: USD

3.21  -0.54 (-14.4%)

After market: 3.29 +0.08 (+2.49%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RBBN. RBBN was compared to 49 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

1. Profitability

1.1 Basic Checks

In the past year RBBN was profitable.
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.
RBBN Yearly Net Income VS EBIT VS OCF VS FCFRBBN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

1.2 Ratios

RBBN has a Return On Assets of -4.67%. This is comparable to the rest of the industry: RBBN outperforms 40.82% of its industry peers.
RBBN has a worse Return On Equity (-13.40%) than 61.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.56%, RBBN is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
Industry RankSector Rank
ROA -4.67%
ROE -13.4%
ROIC 2.56%
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
ROIC(3y)N/A
ROIC(5y)N/A
RBBN Yearly ROA, ROE, ROICRBBN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

The Operating Margin of RBBN (3.24%) is better than 61.22% of its industry peers.
In the last couple of years the Operating Margin of RBBN has grown nicely.
With a decent Gross Margin value of 52.71%, RBBN is doing good in the industry, outperforming 67.35% 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 RankSector Rank
OM 3.24%
PM (TTM) N/A
GM 52.71%
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%
RBBN Yearly Profit, Operating, Gross MarginsRBBN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

More info and screens

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
Compared to 1 year ago, RBBN has more shares outstanding
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.
RBBN Yearly Shares OutstandingRBBN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
RBBN Yearly Total Debt VS Total AssetsRBBN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of -0.44, 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 -0.44, RBBN is doing worse than 71.43% of the companies in the same industry.
RBBN has a debt to FCF ratio of 12.31. This is a negative value and a sign of low solvency as RBBN would need 12.31 years to pay back of all of its debts.
The Debt to FCF ratio of RBBN (12.31) is comparable to the rest of the industry.
RBBN has a Debt/Equity ratio of 0.82. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
The Debt to Equity ratio of RBBN (0.82) is worse than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 12.31
Altman-Z -0.44
ROIC/WACC0.24
WACC10.49%
RBBN Yearly LT Debt VS Equity VS FCFRBBN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

RBBN has a Current Ratio of 1.41. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
RBBN has a worse Current ratio (1.41) than 71.43% of its industry peers.
A Quick Ratio of 1.17 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN's Quick ratio of 1.17 is in line compared to the rest of the industry. RBBN outperforms 40.82% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 1.17
RBBN Yearly Current Assets VS Current LiabilitesRBBN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.00% 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.
RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.91%.
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)0.91%
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 19.07% on average per year.
The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y6.08%
EPS Next 2Y19.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.62%
Revenue Next 2Y5.95%
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.
RBBN Yearly Revenue VS EstimatesRBBN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
RBBN Yearly EPS VS EstimatesRBBN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 0.4

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

RBBN is valuated correctly with a Price/Earnings ratio of 13.96.
Based on the Price/Earnings ratio, RBBN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.88. RBBN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.06 indicates a reasonable valuation of RBBN.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 87.76% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (21.20), we can say RBBN is valued rather cheaply.
Industry RankSector Rank
PE 13.96
Fwd PE 9.06
RBBN Price Earnings VS Forward Price EarningsRBBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 81.63% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBBN.
Industry RankSector Rank
P/FCF 20.63
EV/EBITDA 9.94
RBBN Per share dataRBBN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RBBN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as RBBN's earnings are expected to grow with 19.07% in the coming years.
PEG (NY)2.3
PEG (5Y)N/A
EPS Next 2Y19.07%
EPS Next 3YN/A

More info and screens

0

5. Dividend

5.1 Amount

No dividends for RBBN!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

RIBBON COMMUNICATIONS INC

NASDAQ:RBBN (4/30/2025, 8:00:01 PM)

After market: 3.29 +0.08 (+2.49%)

3.21

-0.54 (-14.4%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners73.95%
Inst Owner Change-0.04%
Ins Owners2.19%
Ins Owner Change3.52%
Market Cap564.74M
Analysts81.67
Price Target6.5 (102.49%)
Short Float %1.52%
Short Ratio3.98
Dividend
Industry RankSector 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)1
Avg EPS beat(2)7.62%
Min EPS beat(2)-15.48%
Max EPS beat(2)30.72%
EPS beat(4)2
Avg EPS beat(4)-19.68%
Min EPS beat(4)-96.08%
Max EPS beat(4)30.72%
EPS beat(8)4
Avg EPS beat(8)-9.92%
EPS beat(12)6
Avg EPS beat(12)148.14%
EPS beat(16)8
Avg EPS beat(16)113.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-3.59%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-4.2%
Revenue beat(12)1
Avg Revenue beat(12)-3.69%
Revenue beat(16)1
Avg Revenue beat(16)-4.28%
PT rev (1m)1.19%
PT rev (3m)8.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.04%
Valuation
Industry RankSector Rank
PE 13.96
Fwd PE 9.06
P/S 0.68
P/FCF 20.63
P/OCF 11.24
P/B 1.4
P/tB N/A
EV/EBITDA 9.94
EPS(TTM)0.23
EY7.17%
EPS(NY)0.35
Fwd EY11.04%
FCF(TTM)0.16
FCFY4.85%
OCF(TTM)0.29
OCFY8.9%
SpS4.74
BVpS2.3
TBVpS-0.48
PEG (NY)2.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.67%
ROE -13.4%
ROCE 3.24%
ROIC 2.56%
ROICexc 2.86%
ROICexgc 8.29%
OM 3.24%
PM (TTM) N/A
GM 52.71%
FCFM 3.28%
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 Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 12.31
Debt/EBITDA 3.62
Cap/Depr 35.51%
Cap/Sales 2.74%
Interest Coverage 0.82
Cash Conversion 54.95%
Profit Quality N/A
Current Ratio 1.41
Quick Ratio 1.17
Altman-Z -0.44
F-Score6
WACC10.49%
ROIC/WACC0.24
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 Y6.08%
EPS Next 2Y19.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.91%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%0.9%
Revenue Next Year6.62%
Revenue Next 2Y5.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y856.56%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year34.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y259.87%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y194.03%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%