RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - Nasdaq - US7534221046 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RPD. RPD was compared to 284 industry peers in the Software industry. RPD has a medium profitability rating, but doesn't score so well on its financial health evaluation. RPD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RPD had positive earnings in the past year.
In the past year RPD had a positive cash flow from operations.
In the past 5 years RPD reported 4 times negative net income.
RPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RPD's Return On Assets of 1.54% is fine compared to the rest of the industry. RPD outperforms 68.31% of its industry peers.
With an excellent Return On Equity value of 48.13%, RPD belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
The Return On Invested Capital of RPD (1.48%) is better than 69.01% 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 Profit Margin of 2.99%. This is in the better half of the industry: RPD outperforms 69.72% of its industry peers.
RPD's Operating Margin of 2.98% is fine compared to the rest of the industry. RPD outperforms 69.37% of its industry peers.
RPD has a Gross Margin (70.60%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 0.40, we must say that RPD is in the distress zone and has some risk of bankruptcy.
RPD has a Altman-Z score of 0.40. This is in the lower half of the industry: RPD underperforms 66.90% of its industry peers.
RPD has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as RPD would need 6.18 years to pay back of all of its debts.
RPD's Debt to FCF ratio of 6.18 is in line compared to the rest of the industry. RPD outperforms 55.99% of its industry peers.
RPD has a Debt/Equity ratio of 16.87. This is a high value indicating a heavy dependency on external financing.
RPD has a worse Debt to Equity ratio (16.87) than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.23
WACC6.45%
2.3 Liquidity
RPD has a Current Ratio of 1.24. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
RPD has a Current ratio of 1.24. This is in the lower half of the industry: RPD underperforms 60.56% of its industry peers.
RPD has a Quick Ratio of 1.24. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
RPD has a worse Quick ratio (1.24) than 60.21% of its industry peers.
| 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.
RPD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.25% yearly.
The Revenue has been growing slightly by 6.20% in the past 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 9.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y-17.82%
EPS Next 2Y-6.33%
EPS Next 3Y-0.9%
EPS Next 5Y9.51%
Revenue Next Year2.27%
Revenue Next 2Y3.16%
Revenue Next 3Y4.05%
Revenue Next 5Y4.36%
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
With a Price/Earnings ratio of 10.58, the valuation of RPD can be described as very reasonable.
RPD's Price/Earnings ratio is rather cheap when compared to the industry. RPD is cheaper than 91.90% 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 26.35.
The Price/Forward Earnings ratio is 11.74, which indicates a very decent valuation of RPD.
Based on the Price/Forward Earnings ratio, RPD is valued cheaply inside the industry as 88.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RPD to the average of the S&P500 Index (22.19), we can say RPD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued a bit cheaper than 77.11% of the companies in the same industry.
RPD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RPD is cheaper than 95.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 24.84 |
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 |
23.39
-0.14 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.39%
Inst Owner Change0.85%
Ins Owners1.62%
Ins Owner Change2.08%
Market Cap1.50B
Analysts70.34
Price Target33.03 (41.21%)
Short Float %5.55%
Short Ratio3.84
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)-10.75%
PT rev (3m)-19.06%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)4.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 11.74 | ||
| P/S | 1.77 | ||
| P/FCF | 9.94 | ||
| P/OCF | 8.82 | ||
| P/B | 28.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.84 |
EPS(TTM)2.21
EY9.45%
EPS(NY)1.99
Fwd EY8.52%
FCF(TTM)2.35
FCFY10.06%
OCF(TTM)2.65
OCFY11.34%
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 | 0.4 |
F-Score7
WACC6.45%
ROIC/WACC0.23
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 5Y9.51%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
Revenue Next Year2.27%
Revenue Next 2Y3.16%
Revenue Next 3Y4.05%
Revenue Next 5Y4.36%
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