0.8019 USD
-0.03 (-3.07%)
0.8179 USD
+0.02 (+2%)
RXT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. Both the profitability and financial health of RXT have multiple concerns. RXT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
1.2 Ratios
- The Return On Assets of RXT (-8.76%) is worse than 68.18% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- With a Gross Margin value of 19.26%, RXT is not doing good in the industry: 80.68% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of RXT has declined.
- RXT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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%
2. Health
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.
- The debt/assets ratio for RXT is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of -1.17, RXT is doing worse than 81.82% of the companies in the same industry.
- The Debt to FCF ratio of RXT is 45.70, which is on the high side as it means it would take RXT, 45.70 years of fcf income to pay off all of its debts.
- RXT has a worse Debt to FCF ratio (45.70) than 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 45.7 | ||
| Altman-Z | -1.17 |
ROIC/WACCN/A
WACC3.28%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
- RXT's Current ratio of 0.71 is on the low side compared to the rest of the industry. RXT is outperformed by 86.36% of its industry peers.
- A Quick Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, RXT is doing worse than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- RXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.63%, which is quite impressive.
- RXT shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
- The Revenue has been growing slightly by 2.34% on average over the past years.
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 37.20% 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 5.45% yearly.
EPS Next Y22.31%
EPS Next 2Y42.79%
EPS Next 3Y37.2%
EPS Next 5YN/A
Revenue Next Year-1.89%
Revenue Next 2Y-0.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
- RXT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 79.40, the valuation of RXT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RXT is on the same level as its industry peers.
- RXT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.4 |
4.2 Price Multiples
- RXT's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, RXT is valued cheaply inside the industry as 97.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.83 | ||
| EV/EBITDA | 27.12 |
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 37.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.79%
EPS Next 3Y37.2%
5. Dividend
5.1 Amount
- RXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 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.
Can you provide the profitability details for RACKSPACE TECHNOLOGY INC?
RACKSPACE TECHNOLOGY INC (RXT) has a profitability rating of 1 / 10.
What is the earnings growth outlook for RACKSPACE TECHNOLOGY INC?
The Earnings per Share (EPS) of RACKSPACE TECHNOLOGY INC (RXT) is expected to grow by 22.31% in the next year.