RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
2.28 USD
+0.08 (+3.64%)
At close: Feb 25, 2026
2.28 USD
0 (0%)
After Hours: 2/25/2026, 8:00:01 PM
Overall RBBN gets a fundamental rating of 4 out of 10. We evaluated RBBN against 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of RBBN while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on RBBN.
1. Profitability
1.1 Basic Checks
- In the past year RBBN was profitable.
- 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
- RBBN has a Return On Assets of 3.27%. This is in the better half of the industry: RBBN outperforms 70.83% of its industry peers.
- With a decent Return On Equity value of 8.83%, RBBN is doing good in the industry, outperforming 77.08% of the companies in the same industry.
- The Return On Invested Capital of RBBN (1.82%) is comparable to the rest of the 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
- The Profit Margin of RBBN (4.69%) is better than 70.83% of its industry peers.
- In the last couple of years the Profit Margin of RBBN has declined.
- RBBN's Operating Margin of 2.45% is in line compared to the rest of the industry. RBBN outperforms 50.00% of its industry peers.
- RBBN's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 49.81%, RBBN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
- RBBN has more shares outstanding than it did 1 year ago.
- RBBN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RBBN has been reduced compared to a year ago.
2.2 Solvency
- RBBN has an Altman-Z score of -0.58. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.58, RBBN is doing worse than 64.58% of the companies in the same industry.
- RBBN has a debt to FCF ratio of 12.79. This is a negative value and a sign of low solvency as RBBN would need 12.79 years to pay back of all of its debts.
- RBBN's Debt to FCF ratio of 12.79 is in line compared to the rest of the industry. RBBN outperforms 43.75% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | -0.58 |
ROIC/WACC0.2
WACC9.1%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that RBBN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.44, RBBN is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
- A Quick Ratio of 1.19 indicates that RBBN should not have too much problems paying 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
- The Earnings Per Share has grown by an impressive 160.00% over the past year.
- 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
- Based on estimates for the next years, RBBN will show a very negative growth in Earnings Per Share. The EPS will decrease by -23.80% on average per year.
- The Revenue is expected to grow by 4.96% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 3.51, the valuation of RBBN can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
- RBBN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.05.
- With a Price/Forward Earnings ratio of 8.18, the valuation of RBBN can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 97.92% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.51 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 87.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RBBN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 7.66 |
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)0.36
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% |
2.28
+0.08 (+3.64%)
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 Change1.6%
Ins Owners2.6%
Ins Owner Change0.54%
Market Cap402.65M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (157.46%)
Short Float %2.42%
Short Ratio4.44
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 | 3.51 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.48 | ||
| P/FCF | 15.45 | ||
| P/OCF | 7.83 | ||
| P/B | 0.9 | ||
| P/tB | 84.63 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)0.65
EY28.51%
EPS(NY)0.28
Fwd EY12.23%
FCF(TTM)0.15
FCFY6.47%
OCF(TTM)0.29
OCFY12.77%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.36
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 | -0.58 |
F-Score7
WACC9.1%
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-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.