RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - Nasdaq - US7534221046 - Common Stock - Currency: USD
RPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. There are concerns on the financial health of RPD while its profitability can be described as average. RPD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RPD was profitable.
In the past year RPD had a positive cash flow from operations.
RPD had negative earnings in 4 of the past 5 years.
In the past 5 years RPD always reported a positive cash flow from operatings.
1.2 Ratios
RPD's Return On Assets of 1.54% is fine compared to the rest of the industry. RPD outperforms 68.44% of its industry peers.
The Return On Equity of RPD (48.13%) is better than 95.39% of its industry peers.
RPD has a better Return On Invested Capital (1.48%) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 48.13% | ||
| ROIC | 1.48% |
ROA(3y)-5.93%
ROA(5y)-7.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RPD has a better Profit Margin (2.99%) than 69.50% of its industry peers.
RPD has a better Operating Margin (2.98%) than 68.79% of its industry peers.
Looking at the Gross Margin, with a value of 70.60%, RPD is in line with its industry, outperforming 56.38% of the companies in the same industry.
RPD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | 2.99% | ||
| GM | 70.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.87%
GM growth 5Y-0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPD is destroying value.
RPD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RPD has more shares outstanding
RPD has a better debt/assets ratio than last year.
2.2 Solvency
RPD has an Altman-Z score of 0.39. This is a bad value and indicates that RPD is not financially healthy and even has some risk of bankruptcy.
RPD's Altman-Z score of 0.39 is on the low side compared to the rest of the industry. RPD is outperformed by 68.44% of its industry peers.
The Debt to FCF ratio of RPD is 6.18, which is on the high side as it means it would take RPD, 6.18 years of fcf income to pay off all of its debts.
RPD has a Debt to FCF ratio (6.18) which is comparable to the rest of the industry.
RPD has a Debt/Equity ratio of 16.87. This is a high value indicating a heavy dependency on external financing.
RPD's Debt to Equity ratio of 16.87 is on the low side compared to the rest of the industry. RPD is outperformed by 84.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.17
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.24 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, RPD is doing worse than 60.64% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, RPD is in line with its industry, outperforming 40.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.33% over the past year.
Measured over the past years, RPD shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.25% on average per year.
Looking at the last year, RPD shows a small growth in Revenue. The Revenue has grown by 6.20% in the last year.
The Revenue has been growing by 20.89% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.33%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-10.91%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
Based on estimates for the next years, RPD will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-17.82%
EPS Next 2Y-6.33%
EPS Next 3Y-0.9%
EPS Next 5Y12.11%
Revenue Next Year2.56%
Revenue Next 2Y3.42%
Revenue Next 3Y4.39%
Revenue Next 5Y4.55%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.33, which indicates a very decent valuation of RPD.
Based on the Price/Earnings ratio, RPD is valued cheaper than 90.78% of the companies in the same industry.
RPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
With a Price/Forward Earnings ratio of 11.47, the valuation of RPD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RPD is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
RPD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued a bit cheaper than the industry average as 78.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RPD is valued cheaply inside the industry as 94.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 24.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-6.33%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.84
+0.47 (+2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.45%
Inst Owner Change0.85%
Ins Owners1.38%
Ins Owner Change1.63%
Market Cap1.47B
Analysts71.03
Price Target37.01 (62.04%)
Short Float %6.11%
Short Ratio3.89
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)1
Avg EPS beat(2)18.14%
Min EPS beat(2)-4.29%
Max EPS beat(2)40.57%
EPS beat(4)3
Avg EPS beat(4)18.43%
Min EPS beat(4)-4.29%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)25.71%
EPS beat(12)11
Avg EPS beat(12)49.33%
EPS beat(16)14
Avg EPS beat(16)58.83%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.94%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)1.04%
PT rev (1m)-5.59%
PT rev (3m)-9.32%
EPS NQ rev (1m)4.58%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)1.77%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.73 | ||
| P/FCF | 9.7 | ||
| P/OCF | 8.61 | ||
| P/B | 27.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.21 |
EPS(TTM)2.21
EY9.68%
EPS(NY)1.99
Fwd EY8.72%
FCF(TTM)2.35
FCFY10.31%
OCF(TTM)2.65
OCFY11.61%
SpS13.22
BVpS0.82
TBVpS-9.38
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 48.13% | ||
| ROCE | 2.4% | ||
| ROIC | 1.48% | ||
| ROICexc | 2.77% | ||
| ROICexgc | N/A | ||
| OM | 2.98% | ||
| PM (TTM) | 2.99% | ||
| GM | 70.6% | ||
| FCFM | 17.81% |
ROA(3y)-5.93%
ROA(5y)-7.98%
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 3Y0.87%
GM growth 5Y-0.53%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 12.61 | ||
| Cap/Depr | 42.32% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 4.84 | ||
| Cash Conversion | 241.61% | ||
| Profit Quality | 596.01% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.39 |
F-Score7
WACC8.48%
ROIC/WACC0.17
Cap/Depr(3y)58.23%
Cap/Depr(5y)63.81%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-10.91%
EPS Next Y-17.82%
EPS Next 2Y-6.33%
EPS Next 3Y-0.9%
EPS Next 5Y12.11%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
Revenue Next Year2.56%
Revenue Next 2Y3.42%
Revenue Next 3Y4.39%
Revenue Next 5Y4.55%
EBIT growth 1Y275.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-6.56%
EBIT Next 3Y6.46%
EBIT Next 5YN/A
FCF growth 1Y324.43%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y131.34%
OCF growth 3Y47.11%
OCF growth 5YN/A