RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
USA - NYSE:RNG - US76680R2067 - Common Stock
26.805 USD
-0.05 (-0.2%)
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. 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
The Return On Assets of RNG (-0.76%) is comparable to the rest of the industry.
The Return On Invested Capital of RNG (17.09%) is better than 92.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | N/A | ||
| ROIC | 17.1% |
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 Operating Margin of 3.28% is fine compared to the rest of the industry. RNG outperforms 65.60% of its industry peers.
Looking at the Gross Margin, with a value of 70.77%, RNG is in line with its industry, outperforming 56.74% of the companies in the same industry.
RNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | N/A | ||
| GM | 70.77% |
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 just above the Cost of Capital (WACC), so RNG is still creating some value.
RNG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RNG has been increased compared to 5 years ago.
The debt/assets ratio for RNG is higher compared to a year ago.
2.2 Solvency
RNG has an Altman-Z score of 0.61. 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 (0.61) than 68.44% of its industry peers.
RNG has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as RNG would need 2.58 years to pay back of all of its debts.
RNG has a Debt to FCF ratio of 2.58. This is in the better half of the industry: RNG outperforms 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 0.61 |
ROIC/WACC1.67
WACC10.25%
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.
Looking at the Current ratio, with a value of 0.65, RNG is doing worse than 87.23% of the companies in the same industry.
RNG has a Quick 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 Quick ratio value of 0.65, RNG is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
RNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, 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.
Looking at the last year, RNG shows a small growth in Revenue. The Revenue has grown by 6.47% in the last year.
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
The Earnings Per Share is expected to grow by 8.66% on average over the next years. This is quite good.
RNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y15.77%
EPS Next 2Y13.35%
EPS Next 3Y12.3%
EPS Next 5Y8.66%
Revenue Next Year4.87%
Revenue Next 2Y5.13%
Revenue Next 3Y4.94%
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
RNG is valuated cheaply with a Price/Earnings ratio of 6.72.
Based on the Price/Earnings ratio, RNG is valued cheaply inside the industry as 94.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.34, RNG is valued rather cheaply.
RNG is valuated cheaply with a Price/Forward Earnings ratio of 5.62.
97.16% 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 22.86, RNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RNG is valued cheaper than 99.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 11.74 |
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.
A more expensive valuation may be justified as RNG's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)0.43
PEG (5Y)0.19
EPS Next 2Y13.35%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
No dividends for RNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RNG (10/14/2025, 9:41:36 AM)
26.805
-0.05 (-0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.97%
Inst Owner Change-0.04%
Ins Owners1.11%
Ins Owner Change2.4%
Market Cap2.43B
Analysts69.57
Price Target33.73 (25.83%)
Short Float %7.97%
Short Ratio3.52
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)2.97%
Min EPS beat(2)2.61%
Max EPS beat(2)3.33%
EPS beat(4)4
Avg EPS beat(4)2.04%
Min EPS beat(4)0.36%
Max EPS beat(4)3.33%
EPS beat(8)8
Avg EPS beat(8)3.19%
EPS beat(12)12
Avg EPS beat(12)4.33%
EPS beat(16)16
Avg EPS beat(16)5.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.57%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)9
Avg Revenue beat(16)0.22%
PT rev (1m)0%
PT rev (3m)3.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 5.62 | ||
| P/S | 0.99 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.74 |
EPS(TTM)3.99
EY14.89%
EPS(NY)4.77
Fwd EY17.78%
FCF(TTM)5.4
FCFY20.16%
OCF(TTM)6.37
OCFY23.78%
SpS27.12
BVpS-3.17
TBVpS-6.23
PEG (NY)0.43
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | N/A | ||
| ROCE | 21.64% | ||
| ROIC | 17.1% | ||
| ROICexc | 31.17% | ||
| ROICexgc | N/A | ||
| OM | 3.28% | ||
| PM (TTM) | N/A | ||
| GM | 70.77% | ||
| FCFM | 19.92% |
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-ScoreN/A
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 40.02% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | 192.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.61 |
F-ScoreN/A
WACC10.25%
ROIC/WACC1.67
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 Y15.77%
EPS Next 2Y13.35%
EPS Next 3Y12.3%
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 2Y5.13%
Revenue Next 3Y4.94%
Revenue Next 5Y5%
EBIT growth 1Y173.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.47%
EBIT Next 3Y14.38%
EBIT Next 5Y12.28%
FCF growth 1Y148.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.55%
OCF growth 3Y46.98%
OCF growth 5Y49.46%