RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RNG - US76680R2067 - Common Stock
25.81 USD
-0.49 (-1.86%)
25.81 USD
0 (0%)
Taking everything into account, RNG scores 4 out of 10 in our fundamental rating. RNG was compared to 277 industry peers in the Software industry. RNG has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on RNG.
1. Profitability
1.1 Basic Checks
- In the past year RNG was profitable.
- RNG had a positive operating cash flow in the past year.
- RNG had negative earnings in each of the past 5 years.
- RNG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RNG's Return On Assets of 0.87% is in line compared to the rest of the industry. RNG outperforms 59.21% of its industry peers.
- RNG's Return On Invested Capital of 28.65% is amongst the best of the industry. RNG outperforms 96.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | N/A | ||
| ROIC | 28.65% |
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's Profit Margin of 0.53% is in line compared to the rest of the industry. RNG outperforms 56.68% of its industry peers.
- RNG has a Operating Margin of 4.72%. This is in the better half of the industry: RNG outperforms 67.51% of its industry peers.
- The Gross Margin of RNG (71.12%) is comparable to the rest of the industry.
- RNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 0.53% | ||
| GM | 71.12% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RNG is creating value.
- RNG has less shares outstanding than it did 1 year ago.
- RNG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RNG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.67, we must say that RNG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.67, RNG is doing worse than 66.79% of the companies in the same industry.
- RNG has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as RNG would need 2.44 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.44, RNG is doing good in the industry, outperforming 66.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 0.67 |
ROIC/WACC2.85
WACC10.04%
2.3 Liquidity
- RNG has a Current Ratio of 0.63. This is a bad value and indicates that RNG is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.63, RNG is not doing good in the industry: 90.97% of the companies in the same industry are doing better.
- A Quick Ratio of 0.63 indicates that RNG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.63, RNG is doing worse than 90.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- RNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.16%, which is quite good.
- Measured over the past years, RNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.24% on average per year.
- RNG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
- The Revenue has been growing by 21.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.16%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%18.95%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.91%
3.2 Future
- The Earnings Per Share is expected to grow by 10.16% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y17.6%
EPS Next 2Y14.11%
EPS Next 3Y13.28%
EPS Next 5Y10.16%
Revenue Next Year4.79%
Revenue Next 2Y4.58%
Revenue Next 3Y4.55%
Revenue Next 5Y4.9%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 6.19 indicates a rather cheap valuation of RNG.
- 93.14% of the companies in the same industry are more expensive than RNG, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of RNG to the average of the S&P500 Index (26.94), we can say RNG is valued rather cheaply.
- RNG is valuated cheaply with a Price/Forward Earnings ratio of 5.34.
- 93.86% of the companies in the same industry are more expensive than RNG, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, RNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaper than 88.09% of the companies in the same industry.
- RNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RNG is cheaper than 98.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.33 | ||
| EV/EBITDA | 10 |
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.
- RNG's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.18
EPS Next 2Y14.11%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
- No dividends for RNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
25.81
-0.49 (-1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners111.4%
Inst Owner Change0.43%
Ins Owners0.86%
Ins Owner Change-3.95%
Market Cap2.23B
Revenue(TTM)2.49B
Net Income(TTM)13.24M
Analysts70.91
Price Target34.62 (34.13%)
Short Float %10.69%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.36%
Min EPS beat(2)2.61%
Max EPS beat(2)4.11%
EPS beat(4)4
Avg EPS beat(4)2.6%
Min EPS beat(4)0.36%
Max EPS beat(4)4.11%
EPS beat(8)8
Avg EPS beat(8)3.3%
EPS beat(12)12
Avg EPS beat(12)4.02%
EPS beat(16)16
Avg EPS beat(16)5.22%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)-0.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.08%
PT rev (1m)1.21%
PT rev (3m)2.65%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.34 | ||
| P/S | 0.9 | ||
| P/FCF | 4.33 | ||
| P/OCF | 3.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)4.17
EY16.16%
EPS(NY)4.83
Fwd EY18.72%
FCF(TTM)5.96
FCFY23.09%
OCF(TTM)6.95
OCFY26.92%
SpS28.72
BVpS-3.86
TBVpS-6.95
PEG (NY)0.35
PEG (5Y)0.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | N/A | ||
| ROCE | 36.26% | ||
| ROIC | 28.65% | ||
| ROICexc | 51.98% | ||
| ROICexgc | N/A | ||
| OM | 4.72% | ||
| PM (TTM) | 0.53% | ||
| GM | 71.12% | ||
| FCFM | 20.76% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 38.57% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | 177.45% | ||
| Profit Quality | 3897.79% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.67 |
F-Score8
WACC10.04%
ROIC/WACC2.85
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)16.16%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%18.95%
EPS Next Y17.6%
EPS Next 2Y14.11%
EPS Next 3Y13.28%
EPS Next 5Y10.16%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.91%
Revenue Next Year4.79%
Revenue Next 2Y4.58%
Revenue Next 3Y4.55%
Revenue Next 5Y4.9%
EBIT growth 1Y341.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.98%
EBIT Next 3Y14.3%
EBIT Next 5Y12.58%
FCF growth 1Y109.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.91%
OCF growth 3Y46.98%
OCF growth 5Y49.46%
RINGCENTRAL INC-CLASS A / RNG FAQ
What is the fundamental rating for RNG stock?
ChartMill assigns a fundamental rating of 4 / 10 to RNG.
What is the valuation status of RINGCENTRAL INC-CLASS A (RNG) stock?
ChartMill assigns a valuation rating of 9 / 10 to RINGCENTRAL INC-CLASS A (RNG). This can be considered as Undervalued.
What is the profitability of RNG stock?
RINGCENTRAL INC-CLASS A (RNG) has a profitability rating of 3 / 10.
What are the PE and PB ratios of RINGCENTRAL INC-CLASS A (RNG) stock?
The Price/Earnings (PE) ratio for RINGCENTRAL INC-CLASS A (RNG) is 6.19 and the Price/Book (PB) ratio is -6.68.
Can you provide the expected EPS growth for RNG stock?
The Earnings per Share (EPS) of RINGCENTRAL INC-CLASS A (RNG) is expected to grow by 17.6% in the next year.