RACKSPACE TECHNOLOGY INC (RXT) Stock Fundamental Analysis
USA - NASDAQ:RXT - US7501021056 - Common Stock
1.76 USD
-0.07 (-3.83%)
1.79 USD
+0.03 (+1.7%)
We assign a fundamental rating of 2 out of 10 to RXT. RXT was compared to 86 industry peers in the IT Services industry. RXT may be in some trouble as it scores bad on both profitability and health. RXT is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years RXT always reported negative net income.
Each year in the past 5 years RXT had a positive operating cash flow.
1.2 Ratios
RXT has a worse Return On Assets (-12.73%) than 77.91% 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
RXT has a worse Gross Margin (19.51%) than 84.88% of its industry peers.
RXT's Gross Margin has declined in the last couple of years.
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 | 19.51% |
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.
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
Based on the Altman-Z score of -1.06, we must say that RXT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.06, RXT is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
RXT has a debt to FCF ratio of 59.48. This is a negative value and a sign of low solvency as RXT would need 59.48 years to pay back of all of its debts.
RXT has a Debt to FCF ratio (59.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 59.48 | ||
| Altman-Z | -1.06 |
ROIC/WACCN/A
WACC4.03%
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 88.37% 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.
RXT has a worse Quick ratio (0.77) than 87.21% of its industry peers.
| 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 26.92% over the past year.
The Revenue has decreased by -4.76% 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)26.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-2.72%
3.2 Future
RXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.56% yearly.
Based on estimates for the next years, RXT will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RXT. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 116.17, 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 is valuated expensively when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 116.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXT is valued a bit cheaper than the industry average as 66.28% of the companies are valued more expensively.
91.86% 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 | 7.84 | ||
| EV/EBITDA | 13.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RXT does not grow enough to justify the current Price/Earnings ratio.
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 |
1.76
-0.07 (-3.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners16.64%
Inst Owner Change0%
Ins Owners3.72%
Ins Owner Change9.4%
Market Cap421.27M
Revenue(TTM)2.69B
Net Income(TTM)-368600000
Analysts48
Price Target1.67 (-5.11%)
Short Float %6.76%
Short Ratio5.04
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)-153.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-63.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 116.17 | ||
| P/S | 0.16 | ||
| P/FCF | 7.84 | ||
| P/OCF | 3.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.02 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.02
Fwd EY0.86%
FCF(TTM)0.22
FCFY12.75%
OCF(TTM)0.53
OCFY30.12%
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 | 11.43 | ||
| Cap/Depr | 18.51% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 46.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | -1.06 |
F-Score4
WACC4.03%
ROIC/WACCN/A
Cap/Depr(3y)24.41%
Cap/Depr(5y)24.74%
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)26.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y18.42%
EPS Next 2Y43.47%
EPS Next 3Y40.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.76%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-2.72%
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.