2.88 USD
+0.07 (+2.49%)
RBBN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. RBBN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years RBBN reported 4 times negative net income.
Of the past 5 years RBBN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RBBN (-3.90%) is worse than 60.42% of its industry peers.
RBBN has a Return On Equity of -11.96%. This is in the lower half of the industry: RBBN underperforms 66.67% of its industry peers.
RBBN has a Return On Invested Capital of 3.55%. This is comparable to the rest of the industry: RBBN outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.9% | ||
| ROE | -11.96% | ||
| ROIC | 3.55% |
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RBBN has a Operating Margin (4.20%) which is in line with its industry peers.
RBBN's Operating Margin has improved in the last couple of years.
The Gross Margin of RBBN (50.62%) is better than 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.62% |
OM growth 3Y16.11%
OM growth 5Y34.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.05%
GM growth 5Y-1.31%
2. Health
2.1 Basic Checks
RBBN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, RBBN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.62, 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 -0.62, RBBN is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of RBBN is 6.37, which is on the high side as it means it would take RBBN, 6.37 years of fcf income to pay off all of its debts.
RBBN has a Debt to FCF ratio of 6.37. This is comparable to the rest of the industry: RBBN outperforms 54.17% of its industry peers.
RBBN has a Debt/Equity ratio of 0.91. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
The Debt to Equity ratio of RBBN (0.91) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.33
WACC10.9%
2.3 Liquidity
RBBN has a Current Ratio of 1.43. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.43, RBBN is doing worse than 77.08% of the companies in the same industry.
RBBN has a Quick Ratio of 1.17. 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 worse Quick ratio (1.17) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.76% over the past year.
Measured over the past years, RBBN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.59% on average per year.
RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
Measured over the past years, RBBN shows a quite strong growth in Revenue. The Revenue has been growing by 8.17% on average per year.
EPS 1Y (TTM)4.76%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-20%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
3.2 Future
RBBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.72% yearly.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y-29.28%
EPS Next 2Y5.6%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year3.93%
Revenue Next 2Y4.83%
Revenue Next 3Y4.62%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.09, which indicates a correct valuation of RBBN.
89.58% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (27.25), we can say RBBN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of RBBN can be described as reasonable.
97.92% 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 (23.98), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 85.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RBBN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
RBBN's earnings are expected to grow with 14.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:RBBN (1/13/2026, 3:13:22 PM)
2.88
+0.07 (+2.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners75.04%
Inst Owner Change0.01%
Ins Owners2.6%
Ins Owner Change-0.08%
Market Cap508.61M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (103.82%)
Short Float %2.23%
Short Ratio4.22
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)0
Avg EPS beat(2)-20.43%
Min EPS beat(2)-32.77%
Max EPS beat(2)-8.08%
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)1
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-7.27%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-3.72%
Revenue beat(12)2
Avg Revenue beat(12)-3.63%
Revenue beat(16)2
Avg Revenue beat(16)-4.04%
PT rev (1m)0%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.59 | ||
| P/FCF | 9.67 | ||
| P/OCF | 6.06 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)0.22
EY7.64%
EPS(NY)0.28
Fwd EY9.68%
FCF(TTM)0.3
FCFY10.34%
OCF(TTM)0.48
OCFY16.5%
SpS4.92
BVpS2.04
TBVpS-0.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.9% | ||
| ROE | -11.96% | ||
| ROCE | 4.49% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 10.16% | ||
| OM | 4.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.62% | ||
| FCFM | 6.05% |
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
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 3Y14.11%
ROICexgc growth 5Y27.22%
ROICexc growth 3Y23.03%
ROICexc growth 5Y37.6%
OM growth 3Y16.11%
OM growth 5Y34.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.05%
GM growth 5Y-1.31%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 51.25% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 0.94 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | -0.62 |
F-Score7
WACC10.9%
ROIC/WACC0.33
Cap/Depr(3y)22.21%
Cap/Depr(5y)24.26%
Cap/Sales(3y)1.85%
Cap/Sales(5y)2.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.76%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-20%
EPS Next Y-29.28%
EPS Next 2Y5.6%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
Revenue Next Year3.93%
Revenue Next 2Y4.83%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y183.46%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year14.45%
EBIT Next 3Y17.13%
EBIT Next 5YN/A
FCF growth 1Y802.2%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y543.21%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%
RIBBON COMMUNICATIONS INC / RBBN 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 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 3 / 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 -29.28% in the next year.