RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
USA - NYSE:RNG - US76680R2067 - Common Stock
26.98 USD
-0.33 (-1.21%)
26.98 USD
0 (0%)
Taking everything into account, RNG scores 4 out of 10 in our fundamental rating. RNG was compared to 284 industry peers in the Software industry. RNG has a bad profitability rating. Also its financial health evaluation is rather negative. RNG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 -0.76% is in line compared to the rest of the industry. RNG outperforms 55.63% of its industry peers.
With an excellent Return On Invested Capital value of 17.09%, RNG belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
| 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
With a decent Operating Margin value of 3.28%, RNG is doing good in the industry, outperforming 66.20% of the companies in the same industry.
With a Gross Margin value of 70.77%, RNG perfoms like the industry average, outperforming 56.69% 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
RNG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RNG has less shares outstanding
RNG has more shares outstanding than it did 5 years ago.
RNG has a worse debt/assets ratio than last year.
2.2 Solvency
RNG has an Altman-Z score of 0.63. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.63, RNG is not doing good in the industry: 67.96% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of RNG (2.58) is better than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 0.63 |
ROIC/WACC1.69
WACC10.09%
2.3 Liquidity
A Current Ratio of 0.65 indicates that RNG may have some problems paying its short term obligations.
The Current ratio of RNG (0.65) is worse than 86.97% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.65, RNG is doing worse than 86.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.16% over the past year.
The Earnings Per Share has been growing by 35.24% on average over the past years. This is a very strong growth
RNG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.99%.
RNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.60% yearly.
EPS 1Y (TTM)16.16%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%18.95%
Revenue 1Y (TTM)8.99%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.91%
3.2 Future
Based on estimates for the next years, RNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.66% on average per year.
Based on estimates for the next years, RNG will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y15.8%
EPS Next 2Y13.55%
EPS Next 3Y12.59%
EPS Next 5Y8.66%
Revenue Next Year4.87%
Revenue Next 2Y5.13%
Revenue Next 3Y4.94%
Revenue Next 5Y5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.47, the valuation of RNG can be described as very cheap.
Based on the Price/Earnings ratio, RNG is valued cheaply inside the industry as 94.72% of the companies are valued more expensively.
RNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.67.
Based on the Price/Forward Earnings ratio of 5.64, the valuation of RNG can be described as very cheap.
96.48% 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 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RNG indicates a rather cheap valuation: RNG is cheaper than 99.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 11.88 |
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.
RNG's earnings are expected to grow with 12.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.18
EPS Next 2Y13.55%
EPS Next 3Y12.59%
5. Dividend
5.1 Amount
No dividends for RNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.98
-0.33 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.97%
Inst Owner Change-1.42%
Ins Owners1.11%
Ins Owner Change2.4%
Market Cap2.44B
Revenue(TTM)2.40B
Net Income(TTM)-12176000
Analysts70.43
Price Target34.03 (26.13%)
Short Float %7.95%
Short Ratio4.06
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)0.89%
PT rev (3m)0.71%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.64 | ||
| P/S | 0.99 | ||
| P/FCF | 4.99 | ||
| P/OCF | 4.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.88 |
EPS(TTM)4.17
EY15.46%
EPS(NY)4.78
Fwd EY17.73%
FCF(TTM)5.4
FCFY20.03%
OCF(TTM)6.37
OCFY23.63%
SpS27.12
BVpS-3.17
TBVpS-6.23
PEG (NY)0.41
PEG (5Y)0.18
Graham NumberN/A
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
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-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 | 0.63 |
F-ScoreN/A
WACC10.09%
ROIC/WACC1.69
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)16.16%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%18.95%
EPS Next Y15.8%
EPS Next 2Y13.55%
EPS Next 3Y12.59%
EPS Next 5Y8.66%
Revenue 1Y (TTM)8.99%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.91%
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%
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 for 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.
Can you provide the PE and PB ratios for RNG stock?
The Price/Earnings (PE) ratio for RINGCENTRAL INC-CLASS A (RNG) is 6.47 and the Price/Book (PB) ratio is -8.51.
What is the earnings growth outlook for RINGCENTRAL INC-CLASS A?
The Earnings per Share (EPS) of RINGCENTRAL INC-CLASS A (RNG) is expected to grow by 15.8% in the next year.