RACKSPACE TECHNOLOGY INC (RXT) Stock Fundamental Analysis
USA - NASDAQ:RXT - US7501021056 - Common Stock
1.055 USD
+0.04 (+4.46%)
1.07 USD
+0.02 (+1.42%)
Overall RXT gets a fundamental rating of 2 out of 10. We evaluated RXT against 85 industry peers in the IT Services industry. Both the profitability and financial health of RXT have multiple concerns. RXT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RXT has reported negative net income.
RXT had a positive operating cash flow in the past year.
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 Return On Assets of -12.73%. This is in the lower half of the industry: RXT underperforms 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.73% | ||
| 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
Looking at the Gross Margin, with a value of 19.51%, RXT is doing worse than 82.35% of the companies in the same industry.
In the last couple of years the Gross Margin of RXT has declined.
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 | 19.51% |
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.
RXT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RXT has more shares outstanding
Compared to 1 year ago, RXT has a worse debt to assets ratio.
2.2 Solvency
RXT has an Altman-Z score of -1.09. 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 -1.09, RXT is doing worse than 83.53% of the companies in the same industry.
The Debt to FCF ratio of RXT is 59.48, which is on the high side as it means it would take RXT, 59.48 years of fcf income to pay off all of its debts.
RXT has a worse Debt to FCF ratio (59.48) than 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 59.48 | ||
| Altman-Z | -1.09 |
ROIC/WACCN/A
WACC3.48%
2.3 Liquidity
A Current Ratio of 0.77 indicates that RXT may have some problems paying its short term obligations.
RXT's Current ratio of 0.77 is on the low side compared to the rest of the industry. RXT is outperformed by 87.06% of its industry peers.
RXT has a Quick Ratio of 0.77. 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 0.77, RXT is doing worse than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.63% over the past year.
The Revenue has decreased by -7.44% in the past year.
RXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.34% yearly.
EPS 1Y (TTM)29.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-7.44%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-0.68%
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 40.56% on average per year.
RXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
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
The Revenue growth rate is accelerating: in the next years the growth will be better 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.
The Price/Forward Earnings ratio is 69.64, which means the current valuation is very expensive for RXT.
RXT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, RXT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.64 |
4.2 Price Multiples
RXT's Enterprise Value to EBITDA is on the same level as the industry average.
RXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RXT is cheaper than 97.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| EV/EBITDA | 19.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RXT's earnings are expected to grow with 40.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.47%
EPS Next 3Y40.56%
5. Dividend
5.1 Amount
RXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.055
+0.04 (+4.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners16.64%
Inst Owner Change-42.81%
Ins Owners3.72%
Ins Owner Change9.53%
Market Cap252.52M
Revenue(TTM)2.74B
Net Income(TTM)-368.60M
Analysts48
Price Target1.67 (58.29%)
Short Float %6.97%
Short Ratio4.95
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)7.29%
Min EPS beat(2)-12.09%
Max EPS beat(2)26.66%
EPS beat(4)3
Avg EPS beat(4)24.05%
Min EPS beat(4)-12.09%
Max EPS beat(4)48.96%
EPS beat(8)7
Avg EPS beat(8)22.07%
EPS beat(12)11
Avg EPS beat(12)21.5%
EPS beat(16)15
Avg EPS beat(16)17.25%
Revenue beat(2)2
Avg Revenue beat(2)0.07%
Min Revenue beat(2)0.05%
Max Revenue beat(2)0.1%
Revenue beat(4)3
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)7
Avg Revenue beat(12)0.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.2%
PT rev (1m)0%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-63.42%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.64 | ||
| P/S | 0.09 | ||
| P/FCF | 4.7 | ||
| P/OCF | 1.99 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.49 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.02
Fwd EY1.44%
FCF(TTM)0.22
FCFY21.27%
OCF(TTM)0.53
OCFY50.25%
SpS11.25
BVpS-4.67
TBVpS-10.99
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.73% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.51% | ||
| FCFM | 1.99% |
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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 59.48 | ||
| Debt/EBITDA | 18.12 | ||
| Cap/Depr | 24.79% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | -1.09 |
F-Score4
WACC3.48%
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)-7.44%
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 1Y16.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year147.76%
EBIT Next 3Y58.08%
EBIT Next 5Y37.34%
FCF growth 1Y-16.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.37%
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.