RIMINI STREET INC (RMNI) Stock Fundamental Analysis
NASDAQ:RMNI - US76674Q1076 - Common Stock
4.33 USD
0 (0%)
4.33 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RMNI. RMNI was compared to 280 industry peers in the Software industry. RMNI has a medium profitability rating, but doesn't score so well on its financial health evaluation. RMNI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RMNI was profitable.
In the past year RMNI has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: RMNI reported negative net income in multiple years.
Of the past 5 years RMNI 4 years had a positive operating cash flow.
1.2 Ratios
RMNI has a Return On Assets (-0.71%) which is in line with its industry peers.
RMNI has a better Return On Invested Capital (33.18%) than 97.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMNI is significantly above the industry average of 12.00%.
The last Return On Invested Capital (33.18%) for RMNI is well below the 3 year average (59.35%), which needs to be investigated, but indicates that RMNI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.71% | ||
| ROE | N/A | ||
| ROIC | 33.18% |
ROA(3y)-1.28%
ROA(5y)0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)59.35%
ROIC(5y)N/A
1.3 Margins
RMNI's Operating Margin of 11.15% is fine compared to the rest of the industry. RMNI outperforms 76.07% of its industry peers.
In the last couple of years the Operating Margin of RMNI has grown nicely.
RMNI has a Gross Margin of 61.48%. This is in the lower half of the industry: RMNI underperforms 60.00% of its industry peers.
RMNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.15% | ||
| PM (TTM) | N/A | ||
| GM | 61.48% |
OM growth 3Y-9.7%
OM growth 5Y3.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.43%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
RMNI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RMNI has more shares outstanding than it did 1 year ago.
RMNI has more shares outstanding than it did 5 years ago.
RMNI has a worse debt/assets ratio than last year.
2.2 Solvency
RMNI has an Altman-Z score of 1.24. This is a bad value and indicates that RMNI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.24, RMNI is not doing good in the industry: 61.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC3.1
WACC10.69%
2.3 Liquidity
RMNI has a Current Ratio of 0.92. This is a bad value and indicates that RMNI is not financially healthy enough and could expect problems in meeting its short term obligations.
RMNI has a Current ratio of 0.92. This is in the lower half of the industry: RMNI underperforms 75.36% of its industry peers.
A Quick Ratio of 0.92 indicates that RMNI may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, RMNI is not doing good in the industry: 74.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
RMNI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.64%.
The Earnings Per Share has been growing by 8.23% on average over the past years. This is quite good.
RMNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.53%.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.64%
EPS 3Y-1.96%
EPS 5Y8.23%
EPS Q2Q%-114.29%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.62%
Revenue growth 5Y8.81%
Sales Q2Q%0.96%
3.2 Future
Based on estimates for the next years, RMNI will show a decrease in Earnings Per Share. The EPS will decrease by -5.39% on average per year.
Based on estimates for the next years, RMNI will show a small growth in Revenue. The Revenue will grow by 2.72% on average per year.
EPS Next Y-32.62%
EPS Next 2Y-5.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y2.72%
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 decreasing.
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
The Price/Earnings ratio is 10.31, which indicates a very decent valuation of RMNI.
Compared to the rest of the industry, the Price/Earnings ratio of RMNI indicates a rather cheap valuation: RMNI is cheaper than 89.29% of the companies listed in the same industry.
RMNI is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.87, which indicates a very decent valuation of RMNI.
91.79% of the companies in the same industry are more expensive than RMNI, based on the Price/Forward Earnings ratio.
RMNI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
93.57% of the companies in the same industry are more expensive than RMNI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as RMNI's earnings are expected to decrease with -5.39% in the coming years.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-5.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RMNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.33
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40%
Inst Owner Change-0.46%
Ins Owners14.47%
Ins Owner Change9.14%
Market Cap400.61M
Analysts80
Price Target6.76 (56.12%)
Short Float %1.11%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-52.94%
Min EPS beat(2)-111.76%
Max EPS beat(2)5.89%
EPS beat(4)3
Avg EPS beat(4)48.09%
Min EPS beat(4)-111.76%
Max EPS beat(4)280.6%
EPS beat(8)5
Avg EPS beat(8)29.75%
EPS beat(12)7
Avg EPS beat(12)27.94%
EPS beat(16)9
Avg EPS beat(16)73.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.99%
Revenue beat(4)2
Avg Revenue beat(4)2.17%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)9.23%
Revenue beat(8)2
Avg Revenue beat(8)0.22%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)6
Avg Revenue beat(16)0.16%
PT rev (1m)3.92%
PT rev (3m)20.45%
EPS NQ rev (1m)-8.21%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)-14.82%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)5.94%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 9.87 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.38 |
EPS(TTM)0.42
EY9.7%
EPS(NY)0.44
Fwd EY10.13%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)-0.44
OCFYN/A
SpS4.62
BVpS-0.31
TBVpS-0.31
PEG (NY)N/A
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.71% | ||
| ROE | N/A | ||
| ROCE | 52.5% | ||
| ROIC | 33.18% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.15% | ||
| PM (TTM) | N/A | ||
| GM | 61.48% | ||
| FCFM | N/A |
ROA(3y)-1.28%
ROA(5y)0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)59.35%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)93.9%
ROCE(5y)27.37%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.7%
OM growth 5Y3.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.43%
GM growth 5Y-0.55%
F-Score2
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 109.83% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.24 |
F-Score2
WACC10.69%
ROIC/WACC3.1
Cap/Depr(3y)174.08%
Cap/Depr(5y)138.39%
Cap/Sales(3y)1.17%
Cap/Sales(5y)0.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.64%
EPS 3Y-1.96%
EPS 5Y8.23%
EPS Q2Q%-114.29%
EPS Next Y-32.62%
EPS Next 2Y-5.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.62%
Revenue growth 5Y8.81%
Sales Q2Q%0.96%
Revenue Next Year1.45%
Revenue Next 2Y2.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.63%
EBIT growth 3Y-5.52%
EBIT growth 5Y12.39%
EBIT Next Year35.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-401.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-877.11%
OCF growth 3YN/A
OCF growth 5YN/A