RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
3 USD
0 (0%)
Overall RBBN gets a fundamental rating of 3 out of 10. We evaluated RBBN against 48 industry peers in the Communications Equipment industry. RBBN may be in some trouble as it scores bad on both profitability and health. RBBN has a decent growth rate and is not valued too expensively.
1. Profitability
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.
1.2 Ratios
With a Return On Assets value of -3.90%, RBBN is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
RBBN has a Return On Equity of -11.96%. This is in the lower half of the industry: RBBN underperforms 62.50% of its industry peers.
With a Return On Invested Capital value of 3.55%, RBBN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| 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.
With a decent Gross Margin value of 50.62%, RBBN is doing good in the industry, outperforming 68.75% 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 | 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.
The number of shares outstanding for RBBN has been increased compared to 1 year ago.
Compared to 5 years ago, RBBN has more shares outstanding
Compared to 1 year ago, RBBN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.60, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
RBBN has a worse Altman-Z score (-0.60) than 68.75% of its industry peers.
RBBN has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as RBBN would need 6.37 years to pay back of all of its debts.
RBBN's Debt to FCF ratio of 6.37 is in line compared to the rest of the industry. RBBN outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
RBBN has a worse Debt to Equity ratio (0.91) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.6 |
ROIC/WACC0.34
WACC10.41%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a worse Current ratio (1.43) than 70.83% of its industry peers.
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's Quick ratio of 1.17 is on the low side compared to the rest of the industry. RBBN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
RBBN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
The earnings per share for RBBN have been decreasing by -12.59% on average. This is quite bad
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.
RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.64, the valuation of RBBN can be described as correct.
Based on the Price/Earnings ratio, RBBN is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. RBBN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.76, the valuation of RBBN can be described as very reasonable.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (34.62), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than RBBN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 89.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.1 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RBBN's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:RBBN (11/18/2025, 10:47:35 AM)
3
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change0%
Ins Owners2.49%
Ins Owner Change5.14%
Market Cap531.24M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (95.67%)
Short Float %2.17%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-5.48%
PT rev (3m)-5.48%
EPS NQ rev (1m)-32.99%
EPS NQ rev (3m)-31.58%
EPS NY rev (1m)-29.25%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)-5.34%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 10.76 | ||
| P/S | 0.61 | ||
| P/FCF | 10.1 | ||
| P/OCF | 6.33 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)0.22
EY7.33%
EPS(NY)0.28
Fwd EY9.29%
FCF(TTM)0.3
FCFY9.9%
OCF(TTM)0.47
OCFY15.8%
SpS4.91
BVpS2.03
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.17
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 | -0.6 |
F-Score7
WACC10.41%
ROIC/WACC0.34
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 Year31.6%
EBIT Next 3YN/A
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 of RIBBON COMMUNICATIONS INC (RBBN) stock?
ChartMill assigns a valuation rating of 6 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Fairly Valued.
Can you provide the profitability details for RIBBON COMMUNICATIONS INC?
RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 3 / 10.
What is the financial health of RIBBON COMMUNICATIONS INC (RBBN) stock?
The financial health rating of RIBBON COMMUNICATIONS INC (RBBN) is 2 / 10.
What is the expected EPS growth for RIBBON COMMUNICATIONS INC (RBBN) stock?
The Earnings per Share (EPS) of RIBBON COMMUNICATIONS INC (RBBN) is expected to decline by -29.28% in the next year.