RAPID7 INC (RPD)
US7534221046 - Common Stock
RPD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. Both the profitability and financial health of RPD have multiple concerns. RPD is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year RPD was profitable.
RPD had a positive operating cash flow in the past year.
RPD had negative earnings in each of the past 5 years.
Of the past 5 years RPD 4 years had a positive operating cash flow.
1.2 Ratios
RPD has a Return On Assets (-8.14%) which is in line with its industry peers.
RPD has a better Return On Invested Capital (0.55%) than 67.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.14% | ||
| ROE | N/A | ||
| ROIC | 0.55% |
ROA(3y)-10.13%
ROA(5y)-9.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RPD has a Operating Margin of 0.84%. This is in the better half of the industry: RPD outperforms 66.91% of its industry peers.
RPD has a Gross Margin (70.42%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RPD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.84% | ||
| PM (TTM) | N/A | ||
| GM | 70.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.13%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
RPD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RPD has been increased compared to 1 year ago.
Compared to 5 years ago, RPD has more shares outstanding
Compared to 1 year ago, RPD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that RPD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.59, RPD is doing worse than 68.36% of the companies in the same industry.
The Debt to FCF ratio of RPD is 8.25, which is on the high side as it means it would take RPD, 8.25 years of fcf income to pay off all of its debts.
RPD has a Debt to FCF ratio (8.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.25 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.07
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.19 indicates that RPD should not have too much problems paying its short term obligations.
RPD has a Current ratio of 1.19. This is in the lower half of the industry: RPD underperforms 67.27% of its industry peers.
RPD has a Quick Ratio of 1.19. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.19, RPD is not doing good in the industry: 65.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
RPD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 204.69%, which is quite impressive.
Looking at the last year, RPD shows a quite strong growth in Revenue. The Revenue has grown by 12.46% in the last year.
The Revenue has been growing by 26.08% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)204.69%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q243.75%
Revenue 1Y (TTM)12.46%
Revenue growth 3Y23.64%
Revenue growth 5Y26.08%
Revenue growth Q2Q11.97%
3.2 Future
The Earnings Per Share is expected to grow by 16.86% on average over the next years. This is quite good.
Based on estimates for the next years, RPD will show a quite strong growth in Revenue. The Revenue will grow by 15.51% on average per year.
EPS Next Y40.56%
EPS Next 2Y25.14%
EPS Next 3Y21.58%
EPS Next 5Y16.86%
Revenue Next Year10.2%
Revenue Next 2Y10.6%
Revenue Next 3Y11.27%
Revenue Next 5Y15.51%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
RPD is valuated rather expensively with a Price/Earnings ratio of 19.54.
Based on the Price/Earnings ratio, RPD is valued cheaper than 85.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of RPD to the average of the S&P500 Index (28.60), we can say RPD is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.60, RPD is valued correctly.
Based on the Price/Forward Earnings ratio, RPD is valued cheaply inside the industry as 86.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, RPD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RPD indicates a somewhat cheap valuation: RPD is cheaper than 68.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RPD is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 50.59 |
4.3 Compensation for Growth
RPD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RPD's earnings are expected to grow with 21.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y25.14%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
No dividends for RPD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAPID7 INC
NASDAQ:RPD (5/17/2024, 7:24:06 PM)
After market: 38.11 0 (0%)38.11
-1.01 (-2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.37B
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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 19.54 | ||
| Fwd PE | 15.6 | ||
| 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)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.14% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.84% | ||
| PM (TTM) | N/A | ||
| GM | 70.42% | ||
| 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 Turnover0.54
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 | 1.19 | ||
| Quick Ratio | 1.19 | ||
| 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)204.69%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y40.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.46%
Revenue growth 3Y23.64%
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