RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
NYSE:RNG - US76680R2067 - Common Stock
29.14 USD
-0.27 (-0.92%)
29.14 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RNG. RNG was compared to 283 industry peers in the Software industry. Both the profitability and financial health of RNG have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on RNG.
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's Return On Assets of -2.46% is in line compared to the rest of the industry. RNG outperforms 54.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.86%, RNG is in the better half of the industry, outperforming 76.33% 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 63.96% of its industry peers.
RNG's Gross Margin of 70.54% is in line compared to the rest of the industry. RNG outperforms 55.48% of its industry peers.
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
The debt/assets ratio for RNG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.53, 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 0.53, RNG is doing worse than 66.08% of the companies in the same industry.
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 65.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.67
WACC10.29%
2.3 Liquidity
RNG has a Current Ratio of 0.65. 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 0.65, RNG is not doing good in the industry: 86.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that RNG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, RNG is doing worse than 86.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% over the past year.
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 6.47%.
The Revenue has been growing by 21.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.67%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%16.48%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.64%
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 8.66% yearly.
RNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.66%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y5%
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
Based on the Price/Earnings ratio of 7.30, the valuation of RNG can be described as very cheap.
93.64% of the companies in the same industry are more expensive than RNG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, RNG is valued rather cheaply.
RNG is valuated cheaply with a Price/Forward Earnings ratio of 6.22.
95.41% of the companies in the same industry are more expensive than RNG, based on the Price/Forward Earnings ratio.
RNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
84.81% of the companies in the same industry are more expensive than RNG, based on the Enterprise Value to EBITDA ratio.
98.23% of the companies in the same industry are more expensive than RNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.78 | ||
| EV/EBITDA | 14.86 |
4.3 Compensation for Growth
RNG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.5
PEG (5Y)0.21
EPS Next 2Y12.4%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
RNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.14
-0.27 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.64%
Inst Owner Change3.18%
Ins Owners1.3%
Ins Owner Change6.18%
Market Cap2.62B
Analysts68.33
Price Target33.54 (15.1%)
Short Float %7.01%
Short Ratio3.44
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)2.96%
PT rev (3m)-1.11%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.22 | ||
| P/S | 1.08 | ||
| P/FCF | 5.78 | ||
| P/OCF | 4.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.86 |
EPS(TTM)3.99
EY13.69%
EPS(NY)4.69
Fwd EY16.08%
FCF(TTM)5.04
FCFY17.31%
OCF(TTM)5.97
OCFY20.48%
SpS27
BVpS-3.8
TBVpS-7.23
PEG (NY)0.5
PEG (5Y)0.21
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 | 0.53 |
F-Score7
WACC10.29%
ROIC/WACC0.67
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)16.67%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%16.48%
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.66%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.64%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y5%
EBIT growth 1Y124.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.36%
EBIT Next 3Y13.9%
EBIT Next 5Y12.28%
FCF growth 1Y200.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.94%
OCF growth 3Y46.98%
OCF growth 5Y49.46%