RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
2.09 USD
+0.14 (+7.18%)
At close: Feb 13, 2026
2.13 USD
+0.04 (+1.91%)
After Hours: 2/13/2026, 8:00:01 PM
Taking everything into account, RBBN scores 4 out of 10 in our fundamental rating. RBBN was compared to 48 industry peers in the Communications Equipment industry. RBBN has a medium profitability rating, but doesn't score so well on its financial health evaluation. RBBN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- RBBN had positive earnings in the past year.
- RBBN had a positive operating cash flow in the past year.
- RBBN had negative earnings in 4 of the past 5 years.
- RBBN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of RBBN (3.27%) is better than 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 8.83%, RBBN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- With a Return On Invested Capital value of 1.82%, RBBN perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROIC | 1.82% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- RBBN's Profit Margin of 4.69% is fine compared to the rest of the industry. RBBN outperforms 66.67% of its industry peers.
- RBBN's Profit Margin has declined in the last couple of years.
- RBBN has a Operating Margin (2.45%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of RBBN has declined.
- RBBN has a Gross Margin of 49.81%. This is in the better half of the industry: RBBN outperforms 66.67% of its industry peers.
- RBBN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% |
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBBN is destroying value.
- Compared to 1 year ago, RBBN has more shares outstanding
- The number of shares outstanding for RBBN has been increased compared to 5 years ago.
- RBBN has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -0.59, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
- RBBN's Altman-Z score of -0.59 is on the low side compared to the rest of the industry. RBBN is outperformed by 66.67% of its industry peers.
- The Debt to FCF ratio of RBBN is 12.79, which is on the high side as it means it would take RBBN, 12.79 years of fcf income to pay off all of its debts.
- RBBN has a Debt to FCF ratio (12.79) which is comparable to the rest of the industry.
- RBBN has a Debt/Equity ratio of 0.72. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.72, RBBN is doing worse than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | -0.59 |
ROIC/WACC0.21
WACC8.71%
2.3 Liquidity
- RBBN has a Current Ratio of 1.44. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- RBBN has a Current ratio of 1.44. This is in the lower half of the industry: RBBN underperforms 77.08% of its industry peers.
- RBBN has a Quick Ratio of 1.19. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RBBN (1.19) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
- RBBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
- Looking at the last year, RBBN shows a small growth in Revenue. The Revenue has grown by 1.28% in the last year.
- RBBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
3.2 Future
- RBBN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.80% yearly.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- RBBN is valuated cheaply with a Price/Earnings ratio of 3.22.
- RBBN's Price/Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 100.00% of the companies in the same industry.
- RBBN is valuated cheaply when we compare the Price/Earnings ratio to 26.68, which is the current average of the S&P500 Index.
- RBBN is valuated cheaply with a Price/Forward Earnings ratio of 7.50.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (28.06), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.22 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
- 89.58% of the companies in the same industry are more expensive than RBBN, based on the Enterprise Value to EBITDA ratio.
- RBBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBBN is cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
- A cheap valuation may be justified as RBBN's earnings are expected to decrease with -23.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-23.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
2.09
+0.14 (+7.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-27 2026-04-27
Inst Owners75.04%
Inst Owner Change-93.09%
Ins Owners2.6%
Ins Owner Change0.54%
Market Cap369.09M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (180.86%)
Short Float %2.34%
Short Ratio5.56
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)200.59%
Min EPS beat(2)-32.77%
Max EPS beat(2)433.95%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)-4.04%
Revenue beat(4)1
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)2
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-200%
EPS NQ rev (3m)-200%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-11.59%
Revenue NQ rev (3m)-11.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.22 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.44 | ||
| P/FCF | 14.17 | ||
| P/OCF | 7.18 | ||
| P/B | 0.82 | ||
| P/tB | 77.57 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)0.65
EY31.1%
EPS(NY)0.28
Fwd EY13.34%
FCF(TTM)0.15
FCFY7.06%
OCF(TTM)0.29
OCFY13.93%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.33
Graham Number6.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROCE | 2.31% | ||
| ROIC | 1.82% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 4.59% | ||
| OM | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% | ||
| FCFM | 3.09% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
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 5Y-15.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.29%
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 41.6% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.99% | ||
| Profit Quality | 65.74% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | -0.59 |
F-Score7
WACC8.71%
ROIC/WACC0.21
Cap/Depr(3y)30.15%
Cap/Depr(5y)25.74%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3YN/A
EBIT growth 5Y-10.05%
EBIT Next Year47.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.81%
FCF growth 3YN/A
FCF growth 5Y-19.04%
OCF growth 1Y2.3%
OCF growth 3YN/A
OCF growth 5Y-12.74%
RIBBON COMMUNICATIONS INC / RBBN FAQ
What is the fundamental rating for RBBN stock?
ChartMill assigns a fundamental rating of 4 / 10 to RBBN.
What is the valuation status for RBBN stock?
ChartMill assigns a valuation rating of 7 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Undervalued.
Can you provide the profitability details for RIBBON COMMUNICATIONS INC?
RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for RBBN stock?
The Earnings per Share (EPS) of RIBBON COMMUNICATIONS INC (RBBN) is expected to decline by -57.11% in the next year.