RINGCENTRAL INC-CLASS A (RNG)
US76680R2067 - Common Stock
Overall RNG gets a fundamental rating of 4 out of 10. We evaluated RNG against 276 industry peers in the Software industry. Both the profitability and financial health of RNG have multiple concerns. RNG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
RNG had positive earnings in the past year.
In the past year RNG had a positive cash flow from operations.
In the past 5 years RNG always reported negative net income.
RNG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.50%, RNG is in line with its industry, outperforming 50.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-21.83%
ROA(5y)-14.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of RNG (69.84%) is comparable to the rest of the industry.
RNG's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RNG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 69.84% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.31%
GM growth 5Y-1.85%
2. Health
2.1 Basic Checks
RNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RNG has less shares outstanding
Compared to 5 years ago, RNG has more shares outstanding
The debt/assets ratio for RNG is higher compared to a year ago.
2.2 Solvency
RNG has an Altman-Z score of 0.45. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
RNG has a worse Altman-Z score (0.45) than 66.79% of its industry peers.
RNG has a debt to FCF ratio of 4.77. This is a neutral value as RNG would need 4.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.77, RNG is doing good in the industry, outperforming 60.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.77 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACC8.18%
2.3 Liquidity
RNG has a Current Ratio of 1.34. This is a normal value and indicates that RNG is financially healthy and should not expect problems in meeting its short term obligations.
RNG has a Current ratio (1.34) which is comparable to the rest of the industry.
RNG has a Quick Ratio of 1.34. This is a normal value and indicates that RNG is financially healthy and should not expect problems in meeting its short term obligations.
RNG's Quick ratio of 1.34 is in line compared to the rest of the industry. RNG outperforms 43.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.31% over the past year.
The Earnings Per Share has been growing by 33.21% on average over the past years. This is a very strong growth
Looking at the last year, RNG shows a quite strong growth in Revenue. The Revenue has grown by 10.77% in the last year.
Measured over the past years, RNG shows a very strong growth in Revenue. The Revenue has been growing by 26.74% on average per year.
EPS 1Y (TTM)62.31%
EPS 3Y48.82%
EPS 5Y33.21%
EPS growth Q2Q43.33%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y22.99%
Revenue growth 5Y26.74%
Revenue growth Q2Q8.88%
3.2 Future
RNG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.91% yearly.
RNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.11% yearly.
EPS Next Y10.91%
EPS Next 2Y12.53%
EPS Next 3Y11.6%
EPS Next 5Y8.91%
Revenue Next Year8.27%
Revenue Next 2Y8.27%
Revenue Next 3Y7.99%
Revenue Next 5Y11.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.29 indicates a reasonable valuation of RNG.
Based on the Price/Earnings ratio, RNG is valued cheaply inside the industry as 93.80% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RNG to the average of the S&P500 Index (25.20), we can say RNG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.38, the valuation of RNG can be described as reasonable.
95.99% of the companies in the same industry are more expensive than RNG, based on the Price/Forward Earnings ratio.
RNG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
63.14% of the companies in the same industry are more expensive than RNG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RNG indicates a rather cheap valuation: RNG is cheaper than 95.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 117.38 |
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)0.85
PEG (5Y)0.28
EPS Next 2Y12.53%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
No dividends for RNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RINGCENTRAL INC-CLASS A
NYSE:RNG (4/25/2024, 6:24:37 PM)
After market: 30.01 0 (0%)30.01
-0.28 (-0.92%)
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 Cap2.77B
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 | 9.29 | ||
| Fwd PE | 8.38 | ||
| 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)0.85
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 69.84% | ||
| 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 Turnover1.13
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 | 1.34 | ||
| Quick Ratio | 1.34 | ||
| 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)62.31%
EPS 3Y48.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.77%
Revenue growth 3Y22.99%
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