RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - Nasdaq - US7534221046 - Common Stock - Currency: USD
Overall RPD gets a fundamental rating of 4 out of 10. We evaluated RPD against 281 industry peers in the Software industry. There are concerns on the financial health of RPD while its profitability can be described as average. 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.
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 68.33% of its industry peers.
RPD has a better Return On Equity (48.13%) than 95.73% of its industry peers.
With a decent Return On Invested Capital value of 1.48%, RPD is doing good in the industry, outperforming 68.68% of the companies in the same industry.
| 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
With a decent Profit Margin value of 2.99%, RPD is doing good in the industry, outperforming 69.75% of the companies in the same industry.
With a decent Operating Margin value of 2.98%, RPD is doing good in the industry, outperforming 69.04% of the companies in the same industry.
RPD's Gross Margin of 70.60% is in line compared to the rest of the industry. RPD outperforms 54.80% of 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.
The number of shares outstanding for RPD has been increased compared to 1 year ago.
The number of shares outstanding for RPD has been increased compared to 5 years ago.
RPD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that RPD is in the distress zone and has some risk of bankruptcy.
RPD's Altman-Z score of 0.34 is on the low side compared to the rest of the industry. RPD is outperformed by 69.39% 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 has a Debt to FCF ratio (6.18) which is in line with its industry peers.
A Debt/Equity ratio of 16.87 is on the high side and indicates that RPD has dependencies on debt 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 85.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.19
WACC7.86%
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.
With a Current ratio value of 1.24, RPD is not doing good in the industry: 60.50% of the companies in the same industry are doing better.
A Quick Ratio of 1.24 indicates that RPD should not have too much problems paying its short term obligations.
RPD has a Quick ratio of 1.24. This is in the lower half of the industry: RPD underperforms 60.14% 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.
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.
RPD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.20%.
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.
Based on estimates for the next years, RPD will show a small growth in Revenue. The Revenue will grow by 4.36% on average per year.
EPS Next Y-17.4%
EPS Next 2Y-6.99%
EPS Next 3Y-1.4%
EPS Next 5Y9.51%
Revenue Next Year2.25%
Revenue Next 2Y3.08%
Revenue Next 3Y3.8%
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.
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 9.21, which indicates a very decent valuation of RPD.
RPD's Price/Earnings ratio is rather cheap when compared to the industry. RPD is cheaper than 92.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, RPD is valued rather cheaply.
RPD is valuated reasonably with a Price/Forward Earnings ratio of 10.37.
Based on the Price/Forward Earnings ratio, RPD is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RPD to the average of the S&P500 Index (36.21), we can say RPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
79.72% of the companies in the same industry are more expensive than RPD, based on the Enterprise Value to EBITDA ratio.
95.02% 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 | 8.65 | ||
| EV/EBITDA | 22.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-6.99%
EPS Next 3Y-1.4%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.36
-0.76 (-3.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.39%
Inst Owner Change0.04%
Ins Owners1.62%
Ins Owner Change2.07%
Market Cap1.31B
Analysts70.34
Price Target32.27 (58.5%)
Short Float %5.67%
Short Ratio4.66
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)-2.32%
PT rev (3m)-13.53%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 10.37 | ||
| P/S | 1.54 | ||
| P/FCF | 8.65 | ||
| P/OCF | 7.68 | ||
| P/B | 24.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.64 |
EPS(TTM)2.21
EY10.85%
EPS(NY)1.96
Fwd EY9.64%
FCF(TTM)2.35
FCFY11.56%
OCF(TTM)2.65
OCFY13.02%
SpS13.22
BVpS0.82
TBVpS-9.38
PEG (NY)N/A
PEG (5Y)0.1
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 | 0.34 |
F-Score7
WACC7.86%
ROIC/WACC0.19
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-17.4%
EPS Next 2Y-6.99%
EPS Next 3Y-1.4%
EPS Next 5Y9.51%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
Revenue Next Year2.25%
Revenue Next 2Y3.08%
Revenue Next 3Y3.8%
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