RACKSPACE TECHNOLOGY INC (RXT) Fundamental Analysis & Valuation

NASDAQ:RXT • US7501021056

Current stock price

1.77 USD
+0.31 (+21.23%)
At close:
1.75 USD
-0.02 (-1.13%)
After Hours:

This RXT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. RXT Profitability Analysis

1.1 Basic Checks

  • In the past year RXT has reported negative net income.
  • In the past year RXT had a positive cash flow from operations.
  • RXT had negative earnings in each of the past 5 years.
  • In the past 5 years RXT always reported a positive cash flow from operatings.
RXT Yearly Net Income VS EBIT VS OCF VS FCFRXT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M -600M -800M

1.2 Ratios

  • RXT has a worse Return On Assets (-8.06%) than 69.66% of its industry peers.
Industry RankSector Rank
ROA -8.06%
ROE N/A
ROIC N/A
ROA(3y)-18.87%
ROA(5y)-14.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
RXT Yearly ROA, ROE, ROICRXT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400

1.3 Margins

  • RXT has a Gross Margin of 18.86%. This is amonst the worse of the industry: RXT underperforms 80.90% of its industry peers.
  • RXT's Gross Margin has declined in the last couple of years.
  • RXT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 18.86%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.76%
GM growth 5Y-12.31%
RXT Yearly Profit, Operating, Gross MarginsRXT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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0

2. RXT Health Analysis

2.1 Basic Checks

  • RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for RXT has been increased compared to 1 year ago.
  • RXT has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, RXT has a worse debt to assets ratio.
RXT Yearly Shares OutstandingRXT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
RXT Yearly Total Debt VS Total AssetsRXT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • RXT has an Altman-Z score of -1.16. This is a bad value and indicates that RXT is not financially healthy and even has some risk of bankruptcy.
  • RXT has a worse Altman-Z score (-1.16) than 83.15% of its industry peers.
  • RXT has a debt to FCF ratio of 34.71. This is a negative value and a sign of low solvency as RXT would need 34.71 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 34.71, RXT perfoms like the industry average, outperforming 40.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Altman-Z -1.16
ROIC/WACCN/A
WACC3.76%
RXT Yearly LT Debt VS Equity VS FCFRXT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.68 indicates that RXT may have some problems paying its short term obligations.
  • RXT's Current ratio of 0.68 is on the low side compared to the rest of the industry. RXT is outperformed by 86.52% of its industry peers.
  • RXT has a Quick Ratio of 0.68. This is a bad value and indicates that RXT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.68, RXT is doing worse than 86.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.68
RXT Yearly Current Assets VS Current LiabilitesRXT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. RXT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 30.77% over the past year.
  • RXT shows a decrease in Revenue. In the last year, the revenue decreased by -1.88%.
  • RXT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.16% yearly.
EPS 1Y (TTM)30.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)-1.88%
Revenue growth 3Y-4.9%
Revenue growth 5Y-0.16%
Sales Q2Q%-0.41%

3.2 Future

  • Based on estimates for the next years, RXT will show a very strong growth in Earnings Per Share. The EPS will grow by 50.41% on average per year.
  • Based on estimates for the next years, RXT will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y49.5%
EPS Next 2Y52.86%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue Next Year-1.33%
Revenue Next 2Y0%
Revenue Next 3Y2.2%
Revenue Next 5Y6.47%

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
RXT Yearly Revenue VS EstimatesRXT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
RXT Yearly EPS VS EstimatesRXT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 0.4 0.6 0.8

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3

4. RXT Valuation Analysis

4.1 Price/Earnings Ratio

  • RXT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Also next year RXT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
RXT Price Earnings VS Forward Price EarningsRXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

  • RXT's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, RXT is valued cheaply inside the industry as 93.26% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.82
EV/EBITDA 17.59
RXT Per share dataRXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

  • RXT's earnings are expected to grow with 50.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.86%
EPS Next 3Y50.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RXT Dividend Analysis

5.1 Amount

  • RXT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

RXT Fundamentals: All Metrics, Ratios and Statistics

RACKSPACE TECHNOLOGY INC

NASDAQ:RXT (5/1/2026, 8:00:02 PM)

After market: 1.75 -0.02 (-1.13%)

1.77

+0.31 (+21.23%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry Strength78.26
Industry Growth75.78
Earnings (Last)02-26
Earnings (Next)05-07
Inst Owners13.95%
Inst Owner Change0.39%
Ins Owners3.13%
Ins Owner Change-2.92%
Market Cap437.03M
Revenue(TTM)2.69B
Net Income(TTM)-225.80M
Analysts48
Price Target2.21 (24.86%)
Short Float %25.37%
Short Ratio0.69
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)33.99%
Min EPS beat(2)0.99%
Max EPS beat(2)67%
EPS beat(4)3
Avg EPS beat(4)20.64%
Min EPS beat(4)-12.09%
Max EPS beat(4)67%
EPS beat(8)7
Avg EPS beat(8)25.94%
EPS beat(12)11
Avg EPS beat(12)24.39%
EPS beat(16)15
Avg EPS beat(16)21.16%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.54%
Revenue beat(4)3
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.54%
Revenue beat(8)5
Avg Revenue beat(8)0.09%
Revenue beat(12)6
Avg Revenue beat(12)0.04%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0%
PT rev (3m)46.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40%
EPS NY rev (1m)0%
EPS NY rev (3m)-1000%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.91%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.16
P/FCF 4.82
P/OCF 2.89
P/B N/A
P/tB N/A
EV/EBITDA 17.59
EPS(TTM)-0.18
EYN/A
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.37
FCFY20.73%
OCF(TTM)0.61
OCFY34.64%
SpS10.88
BVpS-4.94
TBVpS-10.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA -8.06%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 18.86%
FCFM 3.37%
ROA(3y)-18.87%
ROA(5y)-14.96%
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 3Y-11.76%
GM growth 5Y-12.31%
F-Score4
Asset Turnover0.96
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 34.71
Debt/EBITDA 15.46
Cap/Depr 20.38%
Cap/Sales 2.26%
Interest Coverage N/A
Cash Conversion 76.62%
Profit Quality N/A
Current Ratio 0.68
Quick Ratio 0.68
Altman-Z -1.16
F-Score4
WACC3.76%
ROIC/WACCN/A
Cap/Depr(3y)28.07%
Cap/Depr(5y)26.09%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y49.5%
EPS Next 2Y52.86%
EPS Next 3Y50.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.88%
Revenue growth 3Y-4.9%
Revenue growth 5Y-0.16%
Sales Q2Q%-0.41%
Revenue Next Year-1.33%
Revenue Next 2Y0%
Revenue Next 3Y2.2%
Revenue Next 5Y6.47%
EBIT growth 1Y42.06%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year164.06%
EBIT Next 3Y54.44%
EBIT Next 5Y36.1%
FCF growth 1Y227.25%
FCF growth 3Y-18.33%
FCF growth 5Y239.8%
OCF growth 1Y279.45%
OCF growth 3Y-15.02%
OCF growth 5Y5.34%

RACKSPACE TECHNOLOGY INC / RXT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of RACKSPACE TECHNOLOGY INC (RXT) stock?

ChartMill assigns a fundamental rating of 1 / 10 to RXT.


What is the valuation status of RACKSPACE TECHNOLOGY INC (RXT) stock?

ChartMill assigns a valuation rating of 3 / 10 to RACKSPACE TECHNOLOGY INC (RXT). This can be considered as Overvalued.


How profitable is RACKSPACE TECHNOLOGY INC (RXT) stock?

RACKSPACE TECHNOLOGY INC (RXT) has a profitability rating of 1 / 10.