0.9851 USD
0 (-0.46%)
0.9751 USD
-0.01 (-1.02%)
Taking everything into account, RXT scores 2 out of 10 in our fundamental rating. RXT was compared to 88 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
RXT had negative earnings in the past year.
RXT had a positive operating cash flow in the past year.
In the past 5 years RXT always reported negative net income.
In the past 5 years RXT always reported a positive cash flow from operatings.
1.2 Ratios
RXT has a worse Return On Assets (-8.76%) 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
RXT has a Gross Margin of 19.26%. This is amonst the worse of the industry: RXT underperforms 80.68% of its industry peers.
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.
RXT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.17, we must say that RXT is in the distress zone and has some risk of bankruptcy.
RXT has a Altman-Z score of -1.17. This is amonst the worse of the industry: RXT underperforms 84.09% 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 worse Debt to FCF ratio (45.70) than 60.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 45.7 | ||
| Altman-Z | -1.17 |
ROIC/WACCN/A
WACC3.44%
2.3 Liquidity
RXT has a Current Ratio of 0.71. 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 0.71. This is amonst the worse of the industry: RXT underperforms 85.23% of its industry peers.
A Quick Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
RXT has a Quick ratio of 0.71. This is amonst the worse of the industry: RXT underperforms 85.23% of its industry peers.
| 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
RXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.20% yearly.
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
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.
With a Price/Forward Earnings ratio of 97.53, RXT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RXT is on the same level as its industry peers.
RXT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.53 |
4.2 Price Multiples
RXT's Enterprise Value to EBITDA ratio is in line with the industry average.
96.59% of the companies in the same industry are more expensive than RXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | 27.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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% |
0.9851
0 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners16.28%
Inst Owner Change-42.99%
Ins Owners3.41%
Ins Owner Change8.3%
Market Cap239.96M
Revenue(TTM)2.69B
Net Income(TTM)-249.10M
Analysts48
Price Target1.51 (53.28%)
Short Float %7.04%
Short Ratio4.93
Dividend
| Industry Rank | Sector 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)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)-4.3%
PT rev (3m)-9.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25%
EPS NY rev (1m)4.76%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.53 | ||
| P/S | 0.09 | ||
| P/FCF | 3.48 | ||
| P/OCF | 1.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.49 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.01
Fwd EY1.03%
FCF(TTM)0.28
FCFY28.75%
OCF(TTM)0.6
OCFY60.84%
SpS11.04
BVpS-4.87
TBVpS-10.92
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC3.44%
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 Y22.31%
EPS Next 2Y42.79%
EPS Next 3Y37.2%
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-1.89%
Revenue Next 2Y-0.15%
Revenue Next 3Y1.18%
Revenue Next 5Y5.45%
EBIT growth 1Y19.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.15%
EBIT Next 3Y54.83%
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.