RIMINI STREET INC (RMNI) Stock Fundamental Analysis
NASDAQ:RMNI - Nasdaq - US76674Q1076 - Common Stock - Currency: USD
RMNI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. There are concerns on the financial health of RMNI while its profitability can be described as average. RMNI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RMNI was profitable.
RMNI had a negative operating cash flow in the past year.
In multiple years RMNI reported negative net income over the last 5 years.
RMNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RMNI's Return On Assets of -9.83% is in line compared to the rest of the industry. RMNI outperforms 40.21% of its industry peers.
The Return On Invested Capital of RMNI (54.29%) is better than 99.29% of its industry peers.
RMNI had an Average Return On Invested Capital over the past 3 years of 59.35%. This is significantly above the industry average of 12.03%.
The last Return On Invested Capital (54.29%) 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 | -9.83% | ||
| ROE | N/A | ||
| ROIC | 54.29% |
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 8.91% is fine compared to the rest of the industry. RMNI outperforms 76.51% of its industry peers.
RMNI's Operating Margin has improved in the last couple of years.
RMNI's Gross Margin of 60.88% is in line compared to the rest of the industry. RMNI outperforms 43.06% 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 | 8.91% | ||
| PM (TTM) | N/A | ||
| GM | 60.88% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMNI is creating value.
Compared to 1 year ago, RMNI has more shares outstanding
The number of shares outstanding for RMNI has been increased compared to 5 years ago.
RMNI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that RMNI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RMNI (0.82) is worse than 62.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC5.5
WACC9.87%
2.3 Liquidity
A Current Ratio of 0.79 indicates that RMNI may have some problems paying its short term obligations.
RMNI has a worse Current ratio (0.79) than 84.34% of its industry peers.
A Quick Ratio of 0.79 indicates that RMNI may have some problems paying its short term obligations.
RMNI has a Quick ratio of 0.79. This is amonst the worse of the industry: RMNI underperforms 83.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for RMNI have decreased by 0.00% in the last year.
RMNI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.23% yearly.
RMNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.64%.
The Revenue has been growing by 8.81% on average over the past years. This is quite good.
EPS 1Y (TTM)0%
EPS 3Y-1.96%
EPS 5Y8.23%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.62%
Revenue growth 5Y8.81%
Sales Q2Q%-2.38%
3.2 Future
Based on estimates for the next years, RMNI will show a decrease in Earnings Per Share. The EPS will decrease by -5.34% on average per year.
The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y-21.59%
EPS Next 2Y-5.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.59%
Revenue Next 2Y3.02%
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.
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
A Price/Earnings ratio of 6.56 indicates a rather cheap valuation of RMNI.
Based on the Price/Earnings ratio, RMNI is valued cheaper than 94.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of RMNI to the average of the S&P500 Index (28.22), we can say RMNI is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.47, the valuation of RMNI can be described as very cheap.
RMNI's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMNI is cheaper than 94.66% 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 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMNI is valued cheaper than 93.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
RMNI's earnings are expected to decrease with -5.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-5.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RMNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.28
-0.27 (-7.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.2%
Inst Owner Change0.17%
Ins Owners13.78%
Ins Owner Change5.69%
Market Cap299.46M
Analysts80
Price Target5.74 (75%)
Short Float %1.38%
Short Ratio2.17
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)2
Avg EPS beat(2)149.12%
Min EPS beat(2)17.65%
Max EPS beat(2)280.6%
EPS beat(4)2
Avg EPS beat(4)61.92%
Min EPS beat(4)-26.47%
Max EPS beat(4)280.6%
EPS beat(8)5
Avg EPS beat(8)47.12%
EPS beat(12)7
Avg EPS beat(12)40.07%
EPS beat(16)8
Avg EPS beat(16)61.02%
Revenue beat(2)2
Avg Revenue beat(2)5.36%
Min Revenue beat(2)1.49%
Max Revenue beat(2)9.23%
Revenue beat(4)2
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)9.23%
Revenue beat(8)3
Avg Revenue beat(8)0.49%
Revenue beat(12)5
Avg Revenue beat(12)0.39%
Revenue beat(16)6
Avg Revenue beat(16)0.14%
PT rev (1m)38.46%
PT rev (3m)47.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)0%
EPS NY rev (3m)14.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.28%
Revenue NY rev (1m)8%
Revenue NY rev (3m)8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.68 |
EPS(TTM)0.5
EY15.24%
EPS(NY)0.44
Fwd EY13.39%
FCF(TTM)-0.46
FCFYN/A
OCF(TTM)-0.43
OCFYN/A
SpS4.7
BVpS-0.76
TBVpS-0.76
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.83% | ||
| ROE | N/A | ||
| ROCE | 85.91% | ||
| ROIC | 54.29% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 8.91% | ||
| PM (TTM) | N/A | ||
| GM | 60.88% | ||
| 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-Score1
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 93.94% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.82 |
F-Score1
WACC9.87%
ROIC/WACC5.5
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)0%
EPS 3Y-1.96%
EPS 5Y8.23%
EPS Q2Q%12.5%
EPS Next Y-21.59%
EPS Next 2Y-5.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y4.62%
Revenue growth 5Y8.81%
Sales Q2Q%-2.38%
Revenue Next Year1.59%
Revenue Next 2Y3.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.66%
EBIT growth 3Y-5.52%
EBIT growth 5Y12.39%
EBIT Next Year28.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-903.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-411.61%
OCF growth 3YN/A
OCF growth 5YN/A