RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
19.17 USD
-0.09 (-0.47%)
19.9492 USD
+0.78 (+4.06%)
We assign a fundamental rating of 4 out of 10 to RPD. RPD was compared to 285 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 has a correct valuation and a medium 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.
In the past 5 years RPD reported 4 times negative net income.
In the past 5 years RPD always reported a positive cash flow from operatings.
1.2 Ratios
RPD has a Return On Assets of 1.55%. This is in the better half of the industry: RPD outperforms 64.21% of its industry peers.
RPD has a Return On Equity of 28.21%. This is amongst the best in the industry. RPD outperforms 91.23% of its industry peers.
RPD has a better Return On Invested Capital (1.23%) than 64.21% 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
With a decent Profit Margin value of 2.98%, RPD is doing good in the industry, outperforming 65.26% of the companies in the same industry.
RPD has a Operating Margin of 2.55%. This is in the better half of the industry: RPD outperforms 65.61% of its industry peers.
RPD has a Gross Margin (70.56%) which is comparable to the rest of the industry.
RPD's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPD is destroying value.
Compared to 1 year ago, RPD has more shares outstanding
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 0.36, we must say that RPD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.36, RPD is doing worse than 70.53% of the companies in the same industry.
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.
RPD has a Debt to FCF ratio (5.42) which is in line with its industry peers.
A Debt/Equity ratio of 9.84 is on the high side and indicates that RPD has dependencies on debt financing.
RPD has a worse Debt to Equity ratio (9.84) than 84.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.15
WACC8.31%
2.3 Liquidity
RPD has a Current 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.
RPD has a Current ratio (1.36) which is in line with its industry peers.
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.
RPD's Quick ratio of 1.36 is in line compared to the rest of the industry. RPD outperforms 43.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for RPD have decreased by -5.96% in the last 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 4.67% in the past year.
Measured over the past years, RPD shows a very strong growth in Revenue. The Revenue has been growing by 20.89% on average per year.
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
RPD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
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-12.66%
EPS Next 2Y-5.4%
EPS Next 3Y-0.96%
EPS Next 5Y8.25%
Revenue Next Year2.22%
Revenue Next 2Y2.71%
Revenue Next 3Y3.02%
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 8.67, 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 92.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RPD to the average of the S&P500 Index (27.57), we can say RPD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.44, the valuation of RPD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 91.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RPD to the average of the S&P500 Index (23.09), we can say RPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
RPD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RPD is cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RPD is valued cheaper than 97.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 20.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-5.4%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.17
-0.09 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change-0.4%
Ins Owners1.66%
Ins Owner Change0.05%
Market Cap1.24B
Revenue(TTM)855.36M
Net Income(TTM)25.52M
Analysts69.66
Price Target25.51 (33.07%)
Short Float %5.77%
Short Ratio3.96
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)0%
PT rev (3m)-20.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.49%
EPS NY rev (3m)5.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.44 | ||
| P/S | 1.45 | ||
| P/FCF | 7.55 | ||
| P/OCF | 6.71 | ||
| P/B | 13.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.36 |
EPS(TTM)2.21
EY11.53%
EPS(NY)2.03
Fwd EY10.6%
FCF(TTM)2.54
FCFY13.24%
OCF(TTM)2.86
OCFY14.91%
SpS13.21
BVpS1.4
TBVpS-8.65
PEG (NY)N/A
PEG (5Y)0.09
Graham Number8.33
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
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 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 | 0.36 |
F-Score6
WACC8.31%
ROIC/WACC0.15
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-12.66%
EPS Next 2Y-5.4%
EPS Next 3Y-0.96%
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 2Y2.71%
Revenue Next 3Y3.02%
Revenue Next 5Y3.45%
EBIT growth 1Y-43.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-1.92%
EBIT Next 3Y5.19%
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