RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - US7534221046 - Common Stock
20.71 USD
-0.19 (-0.91%)
20.71 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RPD. RPD was compared to 280 industry peers in the Software industry. While RPD is still in line with the averages on profitability rating, there are concerns on its financial health. RPD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RPD had positive earnings in the past year.
RPD had a positive operating cash flow in the past year.
RPD had negative earnings in 4 of the past 5 years.
RPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.55%, RPD is in the better half of the industry, outperforming 65.36% of the companies in the same industry.
RPD has a better Return On Equity (28.21%) than 91.07% of its industry peers.
RPD has a better Return On Invested Capital (1.23%) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 28.21% | ||
| ROIC | 1.23% |
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 Profit Margin of 2.98%. This is in the better half of the industry: RPD outperforms 66.07% of its industry peers.
Looking at the Operating Margin, with a value of 2.55%, RPD is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
RPD has a Gross Margin (70.56%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RPD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.55% | ||
| PM (TTM) | 2.98% | ||
| GM | 70.56% |
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.
The number of shares outstanding for RPD has been increased compared to 1 year ago.
RPD has more shares outstanding than it did 5 years ago.
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.
With a Altman-Z score value of 0.39, RPD is not doing good in the industry: 68.93% of the companies in the same industry are doing better.
RPD has a debt to FCF ratio of 5.42. This is a neutral value as RPD would need 5.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.42, RPD is in line with its industry, outperforming 57.14% of the companies in the same industry.
RPD has a Debt/Equity ratio of 9.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.84, RPD is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.14
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.36 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, RPD is in line with its industry, outperforming 45.00% of the companies in the same industry.
RPD has a Quick Ratio of 1.36. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.36, RPD perfoms like the industry average, outperforming 45.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
RPD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.96%.
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 4.67% 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)-5.96%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%0%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.98%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% 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 3.45% on average per year.
EPS Next Y-13.09%
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
EPS Next 5Y8.25%
Revenue Next Year2.22%
Revenue Next 2Y2.77%
Revenue Next 3Y3.13%
Revenue Next 5Y3.45%
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.
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
With a Price/Earnings ratio of 9.37, the valuation of RPD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 90.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. RPD is valued rather cheaply when compared to this.
RPD is valuated reasonably with a Price/Forward Earnings ratio of 10.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 90.00% of the companies listed in the same industry.
RPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RPD indicates a somewhat cheap valuation: RPD is cheaper than 79.29% of the companies listed in the same industry.
96.79% of the companies in the same industry are more expensive than RPD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 21.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
No dividends for RPD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.71
-0.19 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.25%
Inst Owner Change0.94%
Ins Owners1.71%
Ins Owner Change0.06%
Market Cap1.34B
Analysts69.66
Price Target25.91 (25.11%)
Short Float %5.04%
Short Ratio3.55
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)35.02%
Min EPS beat(2)29.46%
Max EPS beat(2)40.57%
EPS beat(4)3
Avg EPS beat(4)22.96%
Min EPS beat(4)-4.29%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)21.45%
EPS beat(12)11
Avg EPS beat(12)46.26%
EPS beat(16)14
Avg EPS beat(16)50.47%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.45%
Revenue beat(12)8
Avg Revenue beat(12)0.41%
Revenue beat(16)12
Avg Revenue beat(16)0.94%
PT rev (1m)-19.7%
PT rev (3m)-29.99%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-8.48%
EPS NY rev (1m)5.22%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.24 | ||
| P/S | 1.57 | ||
| P/FCF | 8.16 | ||
| P/OCF | 7.25 | ||
| P/B | 14.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.75 |
EPS(TTM)2.21
EY10.67%
EPS(NY)2.02
Fwd EY9.77%
FCF(TTM)2.54
FCFY12.25%
OCF(TTM)2.86
OCFY13.8%
SpS13.21
BVpS1.4
TBVpS-8.65
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 28.21% | ||
| ROCE | 2% | ||
| ROIC | 1.23% | ||
| ROICexc | 2.31% | ||
| ROICexgc | N/A | ||
| OM | 2.55% | ||
| PM (TTM) | 2.98% | ||
| GM | 70.56% | ||
| FCFM | 19.21% |
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-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 13.18 | ||
| Cap/Depr | 45.35% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 3.57 | ||
| Cash Conversion | 273.94% | ||
| Profit Quality | 643.91% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.39 |
F-Score6
WACC8.61%
ROIC/WACC0.14
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)-5.96%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%0%
EPS Next Y-13.09%
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
EPS Next 5Y8.25%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.98%
Revenue Next Year2.22%
Revenue Next 2Y2.77%
Revenue Next 3Y3.13%
Revenue Next 5Y3.45%
EBIT growth 1Y-43.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-1.65%
EBIT Next 3Y4.41%
EBIT Next 5YN/A
FCF growth 1Y163.05%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y89.79%
OCF growth 3Y47.11%
OCF growth 5YN/A