RACKSPACE TECHNOLOGY INC (RXT)
US7501021056 - Common Stock
Overall RXT gets a fundamental rating of 1 out of 10. We evaluated RXT against 86 industry peers in the IT Services industry. Both the profitability and financial health of RXT have multiple concerns. RXT has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years RXT had a positive operating cash flow.
1.2 Ratios
RXT has a worse Return On Assets (-20.45%) than 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.45% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-12.88%
ROA(5y)-8.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 21.26%, RXT is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 21.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.38%
GM growth 5Y-12.33%
2. Health
2.1 Basic Checks
RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
RXT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RXT has been increased compared to 5 years ago.
The debt/assets ratio for RXT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.32, we must say that RXT is in the distress zone and has some risk of bankruptcy.
RXT's Altman-Z score of -0.32 is on the low side compared to the rest of the industry. RXT is outperformed by 76.19% of its industry peers.
RXT has a debt to FCF ratio of 11.84. This is a negative value and a sign of low solvency as RXT would need 11.84 years to pay back of all of its debts.
RXT has a Debt to FCF ratio (11.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.84 | ||
| Altman-Z | -0.32 |
ROIC/WACCN/A
WACC5.96%
2.3 Liquidity
RXT has a Current Ratio of 0.92. This is a bad value and indicates that RXT is not financially healthy enough and could expect problems in meeting its short term obligations.
RXT has a Current ratio of 0.92. This is in the lower half of the industry: RXT underperforms 77.38% of its industry peers.
RXT has a Quick Ratio of 0.92. 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 0.92, RXT is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for RXT have decreased strongly by -127.27% in the last year.
RXT shows a decrease in Revenue. In the last year, the revenue decreased by -5.29%.
RXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.81% yearly.
EPS 1Y (TTM)-127.27%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-150%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y2.99%
Revenue growth 5Y3.81%
Revenue growth Q2Q-8.55%
3.2 Future
The Earnings Per Share is expected to grow by 38.20% on average over the next years. This is a very strong growth
RXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y-155.08%
EPS Next 2Y17.32%
EPS Next 3Y38.2%
EPS Next 5YN/A
Revenue Next Year-6.74%
Revenue Next 2Y-2.7%
Revenue Next 3Y-0.25%
Revenue Next 5Y3.17%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RXT.
Based on the Price/Free Cash Flow ratio, RXT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.44 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
RXT's earnings are expected to grow with 38.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.32%
EPS Next 3Y38.2%
5. Dividend
5.1 Amount
No dividends for RXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RACKSPACE TECHNOLOGY INC
NASDAQ:RXT (5/3/2024, 7:16:46 PM)
After market: 1.825 0 (0%)1.825
+0.08 (+4.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap408.12M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.45% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 21.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-127.27%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-155.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y2.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y