RIMINI STREET INC (RMNI)
US76674Q1076 - Common Stock
RMNI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. RMNI has an excellent profitability rating, but there are concerns on its financial health. RMNI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
RMNI had positive earnings in the past year.
In the past year RMNI had a positive cash flow from operations.
In multiple years RMNI reported negative net income over the last 5 years.
RMNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RMNI's Return On Assets of 6.20% is amongst the best of the industry. RMNI outperforms 82.25% of its industry peers.
With an excellent Return On Invested Capital value of 62.72%, RMNI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMNI is significantly above the industry average of 10.18%.
The last Return On Invested Capital (62.72%) for RMNI is well below the 3 year average (70.87%), which needs to be investigated, but indicates that RMNI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | N/A | ||
| ROIC | 62.72% |
ROA(3y)5.84%
ROA(5y)2.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)70.87%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.03%, RMNI is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
Looking at the Operating Margin, with a value of 10.71%, RMNI belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
In the last couple of years the Operating Margin of RMNI has remained more or less at the same level.
RMNI has a Gross Margin of 61.61%. This is comparable to the rest of the industry: RMNI outperforms 43.48% of its industry peers.
In the last couple of years the Gross Margin of RMNI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.71% | ||
| PM (TTM) | 5.03% | ||
| GM | 61.61% |
OM growth 3Y6.51%
OM growth 5Y0.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMNI is creating value.
RMNI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMNI has more shares outstanding
The debt/assets ratio for RMNI has been reduced compared to a year ago.
2.2 Solvency
RMNI has an Altman-Z score of 1.05. This is a bad value and indicates that RMNI is not financially healthy and even has some risk of bankruptcy.
RMNI has a Altman-Z score of 1.05. This is in the lower half of the industry: RMNI underperforms 62.68% of its industry peers.
The Debt to FCF ratio of RMNI is 9.13, which is on the high side as it means it would take RMNI, 9.13 years of fcf income to pay off all of its debts.
RMNI has a Debt to FCF ratio (9.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 1.05 |
ROIC/WACC6.6
WACC9.51%
2.3 Liquidity
RMNI has a Current Ratio of 0.85. This is a bad value and indicates that RMNI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.85, RMNI is doing worse than 82.25% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that RMNI may have some problems paying its short term obligations.
The Quick ratio of RMNI (0.85) is worse than 81.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.89% over the past year.
RMNI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.84% yearly.
Looking at the last year, RMNI shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
The Revenue has been growing by 11.22% on average over the past years. This is quite good.
EPS 1Y (TTM)9.89%
EPS 3Y17.84%
EPS 5YN/A
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y9.71%
Revenue growth 5Y11.22%
Revenue growth Q2Q1.17%
3.2 Future
Based on estimates for the next years, RMNI will show a small growth in Earnings Per Share. The EPS will grow by 4.67% on average per year.
RMNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y-15.63%
EPS Next 2Y4.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.65%
Revenue Next 2Y4.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 4.84 indicates a rather cheap valuation of RMNI.
96.74% of the companies in the same industry are more expensive than RMNI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.60, RMNI is valued rather cheaply.
The Price/Forward Earnings ratio is 4.09, which indicates a rather cheap valuation of RMNI.
RMNI's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMNI is cheaper than 98.19% of the companies in the same industry.
RMNI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.84 | ||
| Fwd PE | 4.09 |
4.2 Price Multiples
98.55% of the companies in the same industry are more expensive than RMNI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RMNI is valued a bit cheaper than 77.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 3.17 |
4.3 Compensation for Growth
The decent profitability rating of RMNI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RMNI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RIMINI STREET INC
NASDAQ:RMNI (5/17/2024, 7:23:54 PM)
After market: 2.42 0 (0%)2.42
+0.06 (+2.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.81M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.84 | ||
| Fwd PE | 4.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.71% | ||
| PM (TTM) | 5.03% | ||
| GM | 61.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.89%
EPS 3Y17.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.73%
Revenue growth 3Y9.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y