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RACKSPACE TECHNOLOGY INC (RXT) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:RXT - US7501021056 - Common Stock

1.045 USD
+0.01 (+1.46%)
Last: 11/28/2025, 12:51:55 PM
Fundamental Rating

2

Overall RXT gets a fundamental rating of 2 out of 10. We evaluated RXT against 86 industry peers in the IT Services industry. RXT has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, RXT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

RXT had negative earnings in the past year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M -600M -800M

1.2 Ratios

The Return On Assets of RXT (-8.76%) is worse than 68.60% of its industry peers.
Industry RankSector Rank
ROA -8.76%
ROE N/A
ROIC N/A
ROA(3y)-21.1%
ROA(5y)-14.12%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400

1.3 Margins

RXT has a worse Gross Margin (19.26%) than 81.40% of its industry peers.
RXT's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RXT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 19.26%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.45%
GM growth 5Y-14.02%
RXT Yearly Profit, Operating, Gross MarginsRXT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

0

2. Health

2.1 Basic Checks

RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RXT has more shares outstanding
RXT has more shares outstanding than it did 5 years ago.
RXT has a worse debt/assets ratio than last year.
RXT Yearly Shares OutstandingRXT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B

2.2 Solvency

RXT has an Altman-Z score of -1.17. 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 (-1.17) than 82.56% of its industry peers.
RXT has a debt to FCF ratio of 45.70. This is a negative value and a sign of low solvency as RXT would need 45.70 years to pay back of all of its debts.
RXT has a Debt to FCF ratio of 45.70. This is in the lower half of the industry: RXT underperforms 62.79% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 45.7
Altman-Z -1.17
ROIC/WACCN/A
WACC3.45%
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 0 1B -1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
With a Current ratio value of 0.71, RXT is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
RXT's Quick ratio of 0.71 is on the low side compared to the rest of the industry. RXT is outperformed by 84.88% of its industry peers.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.71
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 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.63% over the past year.
Looking at the last year, RXT shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
Measured over the past years, RXT shows a small growth in Revenue. The Revenue has been growing by 2.34% on average per year.
EPS 1Y (TTM)29.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-0.68%

3.2 Future

The Earnings Per Share is expected to grow by 40.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y18.42%
EPS Next 2Y43.47%
EPS Next 3Y40.56%
EPS Next 5YN/A
Revenue Next Year-1.96%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.18%
Revenue Next 5Y5.45%

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 0 0.2 -0.2 0.4 0.6 0.8

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RXT. In the last year negative earnings were reported.
RXT is valuated quite expensively with a Price/Forward Earnings ratio of 68.98.
RXT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.12. RXT is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 68.98
RXT Price Earnings VS Forward Price EarningsRXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RXT.
RXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RXT is cheaper than 97.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.63
EV/EBITDA 27.55
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

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RXT's earnings are expected to grow with 40.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.47%
EPS Next 3Y40.56%

0

5. Dividend

5.1 Amount

RXT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

RACKSPACE TECHNOLOGY INC

NASDAQ:RXT (11/28/2025, 12:51:55 PM)

1.045

+0.01 (+1.46%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners16.64%
Inst Owner Change-42.99%
Ins Owners3.72%
Ins Owner Change9.79%
Market Cap250.13M
Revenue(TTM)2.69B
Net Income(TTM)-249.10M
Analysts48
Price Target1.58 (51.2%)
Short Float %6.97%
Short Ratio4.95
Dividend
Industry RankSector 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)-5.55%
Min EPS beat(2)-12.09%
Max EPS beat(2)0.99%
EPS beat(4)3
Avg EPS beat(4)16.13%
Min EPS beat(4)-12.09%
Max EPS beat(4)48.96%
EPS beat(8)7
Avg EPS beat(8)20.42%
EPS beat(12)11
Avg EPS beat(12)20.44%
EPS beat(16)15
Avg EPS beat(16)17.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)-5.1%
PT rev (3m)-5.1%
EPS NQ rev (1m)25%
EPS NQ rev (3m)25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 68.98
P/S 0.09
P/FCF 3.63
P/OCF 1.71
P/B N/A
P/tB N/A
EV/EBITDA 27.55
EPS(TTM)-0.19
EYN/A
EPS(NY)0.02
Fwd EY1.45%
FCF(TTM)0.29
FCFY27.59%
OCF(TTM)0.61
OCFY58.37%
SpS11.23
BVpS-4.96
TBVpS-11.11
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -8.76%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 19.26%
FCFM 2.57%
ROA(3y)-21.1%
ROA(5y)-14.12%
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-14.45%
GM growth 5Y-14.02%
F-Score4
Asset Turnover0.94
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 45.7
Debt/EBITDA 25.59
Cap/Depr 31.3%
Cap/Sales 2.86%
Interest Coverage N/A
Cash Conversion 121.87%
Profit Quality N/A
Current Ratio 0.71
Quick Ratio 0.71
Altman-Z -1.17
F-Score4
WACC3.45%
ROIC/WACCN/A
Cap/Depr(3y)28.18%
Cap/Depr(5y)27.01%
Cap/Sales(3y)3.3%
Cap/Sales(5y)3.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y18.42%
EPS Next 2Y43.47%
EPS Next 3Y40.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-0.68%
Revenue Next Year-1.96%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.18%
Revenue Next 5Y5.45%
EBIT growth 1Y19.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.76%
EBIT Next 3Y58.08%
EBIT Next 5Y37.34%
FCF growth 1Y-72.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-55.78%
OCF growth 3Y-52.44%
OCF growth 5Y-32.88%

RACKSPACE TECHNOLOGY INC / RXT FAQ

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

ChartMill assigns a fundamental rating of 2 / 10 to RXT.


What is the valuation status for RXT stock?

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


What is the profitability of RXT stock?

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


What is the financial health of RACKSPACE TECHNOLOGY INC (RXT) stock?

The financial health rating of RACKSPACE TECHNOLOGY INC (RXT) is 0 / 10.