RIBBON COMMUNICATIONS INC (RBBN) Fundamental Analysis & Valuation

NASDAQ:RBBN • US7625441040

Current stock price

2.19 USD
+0.07 (+3.3%)
At close:
2.19 USD
0 (0%)
After Hours:

This RBBN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. RBBN Profitability Analysis

1.1 Basic Checks

  • In the past year RBBN was profitable.
  • 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.
RBBN Yearly Net Income VS EBIT VS OCF VS FCFRBBN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M -150M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.27%, RBBN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
  • RBBN has a better Return On Equity (8.83%) than 77.08% of its industry peers.
  • RBBN has a Return On Invested Capital (1.82%) which is comparable to the rest of the industry.
Industry RankSector 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
RBBN Yearly ROA, ROE, ROICRBBN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30

1.3 Margins

  • RBBN has a Profit Margin of 4.69%. This is in the better half of the industry: RBBN outperforms 70.83% of its industry peers.
  • In the last couple of years the Profit Margin of RBBN has declined.
  • RBBN has a Operating Margin (2.45%) which is comparable to the rest of the industry.
  • RBBN's Operating Margin has declined in the last couple of years.
  • RBBN's Gross Margin of 49.81% is fine compared to the rest of the industry. RBBN outperforms 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of RBBN has remained more or less at the same level.
Industry RankSector 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%
RBBN Yearly Profit, Operating, Gross MarginsRBBN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. RBBN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
  • The number of shares outstanding for RBBN remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, RBBN has more shares outstanding
  • RBBN has a better debt/assets ratio than last year.
RBBN Yearly Shares OutstandingRBBN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
RBBN Yearly Total Debt VS Total AssetsRBBN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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.
  • Looking at the Altman-Z score, with a value of -0.59, RBBN is doing worse than 64.58% of the companies in the same industry.
  • 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 of 12.79. This is comparable to the rest of the industry: RBBN outperforms 45.83% of its industry peers.
  • RBBN has a Debt/Equity ratio of 0.72. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of RBBN (0.72) is worse than 79.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 12.79
Altman-Z -0.59
ROIC/WACC0.2
WACC8.98%
RBBN Yearly LT Debt VS Equity VS FCFRBBN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.44 indicates that RBBN should not have too much problems paying 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.
  • With a Quick ratio value of 1.19, RBBN is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.19
RBBN Yearly Current Assets VS Current LiabilitesRBBN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. RBBN Growth Analysis

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.
  • The Revenue has been growing slightly by 1.28% in the past year.
  • The Revenue has been growing slightly by 0.02% on average over the past years.
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

  • The Earnings Per Share is expected to decrease by -39.60% on average over the next years. This is quite bad
  • RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y-78.55%
EPS Next 2Y-39.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.66%
Revenue Next 2Y2.43%
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.
RBBN Yearly Revenue VS EstimatesRBBN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
RBBN Yearly EPS VS EstimatesRBBN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6

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Find the best growth stocksShow best growing peers

6

4. RBBN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 3.37, which indicates a rather cheap valuation of RBBN.
  • 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 25.58, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 15.71, which indicates a correct valuation of RBBN.
  • 87.50% of the companies in the same industry are more expensive than RBBN, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (22.81), we can say RBBN is valued slightly cheaper.
Industry RankSector Rank
PE 3.37
Fwd PE 15.71
RBBN Price Earnings VS Forward Price EarningsRBBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • RBBN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RBBN is cheaper than 89.58% of the companies in the same industry.
  • RBBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBBN is cheaper than 85.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.76
EV/EBITDA 7.47
RBBN Per share dataRBBN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • RBBN's earnings are expected to decrease with -39.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-39.6%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RBBN Dividend Analysis

5.1 Amount

  • No dividends for RBBN!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

RBBN Fundamentals: All Metrics, Ratios and Statistics

RIBBON COMMUNICATIONS INC

NASDAQ:RBBN (4/1/2026, 5:20:02 PM)

After market: 2.19 0 (0%)

2.19

+0.07 (+3.3%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)04-27
Inst Owners75.15%
Inst Owner Change1.59%
Ins Owners2.65%
Ins Owner Change3.02%
Market Cap384.56M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts78.46
Price Target3.72 (69.86%)
Short Float %2.1%
Short Ratio3.41
Dividend
Industry RankSector 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)-36.52%
EPS NQ rev (1m)-48%
EPS NQ rev (3m)-1127.83%
EPS NY rev (1m)-50%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.6%
Revenue NY rev (1m)-4.14%
Revenue NY rev (3m)-7%
Valuation
Industry RankSector Rank
PE 3.37
Fwd PE 15.71
P/S 0.46
P/FCF 14.76
P/OCF 7.48
P/B 0.86
P/tB 80.82
EV/EBITDA 7.47
EPS(TTM)0.65
EY29.68%
EPS(NY)0.14
Fwd EY6.37%
FCF(TTM)0.15
FCFY6.78%
OCF(TTM)0.29
OCFY13.37%
SpS4.81
BVpS2.56
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.35
Graham Number6.12
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.72
Debt/FCF 12.79
Debt/EBITDA 3.98
Cap/Depr 41.6%
Cap/Sales 3%
Interest Coverage 0.54
Cash Conversion 62.99%
Profit Quality 65.74%
Current Ratio 1.44
Quick Ratio 1.19
Altman-Z -0.59
F-Score7
WACC8.98%
ROIC/WACC0.2
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-78.55%
EPS Next 2Y-39.6%
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 Year-1.66%
Revenue Next 2Y2.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3YN/A
EBIT growth 5Y-10.05%
EBIT Next Year15.98%
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 Fundamental Analysis FAQ

What is the fundamental rating for RBBN stock?

ChartMill assigns a fundamental rating of 3 / 10 to RBBN.


What is the valuation status for RBBN stock?

ChartMill assigns a valuation rating of 6 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Fairly Valued.


What is the profitability of RBBN stock?

RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 4 / 10.


How financially healthy is RIBBON COMMUNICATIONS INC?

The financial health rating of RIBBON COMMUNICATIONS INC (RBBN) is 2 / 10.