RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
NYSE:RNG - New York Stock Exchange, Inc. - US76680R2067 - Common Stock - Currency: USD
Taking everything into account, RNG scores 4 out of 10 in our fundamental rating. RNG was compared to 282 industry peers in the Software industry. RNG has a bad profitability rating. Also its financial health evaluation is rather negative. RNG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
RNG had positive earnings in the past year.
RNG had a positive operating cash flow in the past year.
In the past 5 years RNG always reported negative net income.
Of the past 5 years RNG 4 years had a positive operating cash flow.
1.2 Ratios
RNG has a Return On Assets of -2.46%. This is comparable to the rest of the industry: RNG outperforms 57.80% of its industry peers.
With a decent Return On Invested Capital value of 6.86%, RNG is doing good in the industry, outperforming 77.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | N/A | ||
| ROIC | 6.86% |
ROA(3y)-18.06%
ROA(5y)-14.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RNG has a better Operating Margin (1.51%) than 65.25% of its industry peers.
The Gross Margin of RNG (70.54%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RNG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.51% | ||
| PM (TTM) | N/A | ||
| GM | 70.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.59%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNG is destroying value.
The number of shares outstanding for RNG has been reduced compared to 1 year ago.
Compared to 5 years ago, RNG has more shares outstanding
RNG has a worse debt/assets ratio than last year.
2.2 Solvency
RNG has an Altman-Z score of 0.49. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
RNG's Altman-Z score of 0.49 is on the low side compared to the rest of the industry. RNG is outperformed by 69.15% of its industry peers.
The Debt to FCF ratio of RNG is 3.01, which is a good value as it means it would take RNG, 3.01 years of fcf income to pay off all of its debts.
RNG's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. RNG outperforms 64.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.69
WACC10.01%
2.3 Liquidity
A Current Ratio of 0.65 indicates that RNG may have some problems paying its short term obligations.
RNG has a worse Current ratio (0.65) than 86.88% of its industry peers.
A Quick Ratio of 0.64 indicates that RNG may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, RNG is not doing good in the industry: 86.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
RNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.97%, which is quite good.
The Earnings Per Share has been growing by 35.24% on average over the past years. This is a very strong growth
RNG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.78%.
RNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.60% yearly.
EPS 1Y (TTM)14.97%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%14.94%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.77%
3.2 Future
The Earnings Per Share is expected to grow by 8.24% on average over the next years. This is quite good.
Based on estimates for the next years, RNG will show a small growth in Revenue. The Revenue will grow by 4.90% on average per year.
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.24%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y4.9%
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
With a Price/Earnings ratio of 7.12, the valuation of RNG can be described as very cheap.
RNG's Price/Earnings ratio is rather cheap when compared to the industry. RNG is cheaper than 95.39% of the companies in the same industry.
RNG is valuated cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
RNG is valuated cheaply with a Price/Forward Earnings ratio of 5.83.
Based on the Price/Forward Earnings ratio, RNG is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
RNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 5.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaper than 86.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RNG is valued cheaply inside the industry as 98.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.49
PEG (5Y)0.2
EPS Next 2Y12.4%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
No dividends for RNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.33
-0.61 (-2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change0.25%
Ins Owners1.31%
Ins Owner Change5.48%
Market Cap2.46B
Analysts68.33
Price Target33.79 (23.64%)
Short Float %7.34%
Short Ratio4.85
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)1.84%
Min EPS beat(2)0.36%
Max EPS beat(2)3.33%
EPS beat(4)4
Avg EPS beat(4)2.05%
Min EPS beat(4)0.36%
Max EPS beat(4)3.33%
EPS beat(8)8
Avg EPS beat(8)4.07%
EPS beat(12)12
Avg EPS beat(12)4.96%
EPS beat(16)16
Avg EPS beat(16)6.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.27%
Revenue beat(16)10
Avg Revenue beat(16)0.54%
PT rev (1m)3.72%
PT rev (3m)-9.9%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 5.83 | ||
| P/S | 1.01 | ||
| P/FCF | 5.42 | ||
| P/OCF | 4.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.44 |
EPS(TTM)3.84
EY14.05%
EPS(NY)4.69
Fwd EY17.15%
FCF(TTM)5.04
FCFY18.46%
OCF(TTM)5.97
OCFY21.84%
SpS27
BVpS-3.8
TBVpS-7.23
PEG (NY)0.49
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | N/A | ||
| ROCE | 8.68% | ||
| ROIC | 6.86% | ||
| ROICexc | 10.8% | ||
| ROICexgc | N/A | ||
| OM | 1.51% | ||
| PM (TTM) | N/A | ||
| GM | 70.54% | ||
| FCFM | 18.68% |
ROA(3y)-18.06%
ROA(5y)-14.51%
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.59%
GM growth 5Y-1.04%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 37.62% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 208.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.49 |
F-Score7
WACC10.01%
ROIC/WACC0.69
Cap/Depr(3y)35.45%
Cap/Depr(5y)111.2%
Cap/Sales(3y)3.82%
Cap/Sales(5y)8.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.97%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%14.94%
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.24%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.77%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y4.9%
EBIT growth 1Y124.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.81%
EBIT Next 3Y13.93%
EBIT Next 5Y10.17%
FCF growth 1Y200.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.94%
OCF growth 3Y46.98%
OCF growth 5Y49.46%