Fundamental Analysis of REALNETWORKS INC(NASDAQ:RNWK) stock

Fundamental Rating

RNWK gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. RNWK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RNWK does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

RNWK had negative earnings in the past year.

RNWK had a negative operating cash flow in the past year.

In the past 5 years RNWK always reported negative net income.

In the past 5 years RNWK always reported negative operating cash flow.

1.2 Ratios

RNWK has negative profitability rations, so we won't be analyzing them here.

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

RNWK does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RNWK does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for RNWK has been increased compared to 1 year ago.

There is no outstanding debt for RNWK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

Based on the Altman-Z score of -16.59, we must say that RNWK is in the distress zone and has some risk of bankruptcy.

RNWK's Altman-Z score of -16.59 is on the low side compared to the rest of the industry. RNWK is outperformed by 94.33% of its industry peers.

There is no outstanding debt for RNWK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	-16.59

ROIC/WACCN/A

WACC10.48%

2.3 Liquidity

A Current Ratio of 1.39 indicates that RNWK should not have too much problems paying its short term obligations.

With a Current ratio value of 1.39, RNWK is not doing good in the industry: 61.67% of the companies in the same industry are doing better.

A Quick Ratio of 1.39 indicates that RNWK should not have too much problems paying its short term obligations.

With a Quick ratio value of 1.39, RNWK is not doing good in the industry: 60.33% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.39
Quick Ratio	1.39

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RNWK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.81%.

RNWK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.47%.

Measured over the past years, RNWK shows a decrease in Revenue. The Revenue has been decreasing by -6.52% on average per year.

EPS 1Y (TTM)-10.81%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q12.5%

Revenue 1Y (TTM)-19.47%

Revenue growth 3Y-5.75%

Revenue growth 5Y-6.52%

Revenue growth Q2Q-18.31%

3.2 Future

Based on estimates for the next years, RNWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.96% on average per year.

RNWK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.12% yearly.

EPS Next Y-46.57%

EPS Next 2Y-48.02%

EPS Next 3Y23.3%

EPS Next 5Y15.96%

Revenue Next Year-14.21%

Revenue Next 2Y-3.01%

Revenue Next 3Y-3.4%

Revenue Next 5Y-3.12%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RNWK. In the last year negative earnings were reported.

Also next year RNWK is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

RNWK's earnings are expected to grow with 23.30% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-48.02%

EPS Next 3Y23.3%

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5. Dividend

5.1 Amount

No dividends for RNWK!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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REALNETWORKS INC

NASDAQ:RNWK (12/21/2022, 7:00:02 PM)

0.73

+0 (+0.03%)

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 Cap34.82M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

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	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	N/A
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 Turnover1.07

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	1.39
Quick Ratio	1.39
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)-10.81%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y-46.57%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-19.47%

Revenue growth 3Y-5.75%

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

REALNETWORKS INC (RNWK)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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