RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
3.16 USD
0 (0%)
3.16 USD
0 (0%)
RBBN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. Both the profitability and financial health of RBBN have multiple concerns. RBBN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RBBN was profitable.
In the past year RBBN had a positive cash flow from operations.
In the past 5 years RBBN reported 4 times negative net income.
RBBN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RBBN (-3.90%) is worse than 60.42% of its industry peers.
RBBN has a worse Return On Equity (-11.96%) than 62.50% of its industry peers.
RBBN's Return On Invested Capital of 3.55% is fine compared to the rest of the industry. RBBN outperforms 60.42% 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 better Operating Margin (4.20%) than 60.42% of its industry peers.
RBBN's Operating Margin has improved in the last couple of years.
RBBN has a better Gross Margin (50.62%) than 68.75% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBBN is destroying value.
RBBN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RBBN has been increased compared to 5 years ago.
RBBN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.57, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
RBBN has a Altman-Z score of -0.57. This is in the lower half of the industry: RBBN underperforms 70.83% 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.
RBBN has a Debt/Equity ratio of 0.91. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, RBBN is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.57 |
ROIC/WACC0.35
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RBBN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.43, RBBN is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a Quick ratio of 1.16. This is in the lower half of the industry: RBBN underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 |
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
The Revenue has been growing slightly by 7.38% in the past year.
The Revenue has been growing by 8.17% on average over the past years. This is quite good.
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 17.20% yearly.
RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.83% yearly.
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y5.83%
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 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
With a Price/Earnings ratio of 14.36, RBBN is valued correctly.
RBBN's Price/Earnings ratio is a bit cheaper when compared to the industry. RBBN is cheaper than 79.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. RBBN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.20 indicates a reasonable valuation of RBBN.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 97.92% of the companies in the same industry.
RBBN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 87.50% of the companies listed in the same industry.
89.58% of the companies in the same industry are more expensive than RBBN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RBBN's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.16
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change-0.03%
Ins Owners2.49%
Ins Owner Change6.73%
Market Cap559.57M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (85.76%)
Short Float %2.11%
Short Ratio4.98
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)-4.17%
EPS NQ rev (1m)-25.77%
EPS NQ rev (3m)-20.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.77%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.64 | ||
| P/FCF | 10.64 | ||
| P/OCF | 6.67 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.39 |
EPS(TTM)0.22
EY6.96%
EPS(NY)0.34
Fwd EY10.87%
FCF(TTM)0.3
FCFY9.4%
OCF(TTM)0.47
OCFY15%
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 | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | -0.57 |
F-Score7
WACC10.21%
ROIC/WACC0.35
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-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
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 -0.04% in the next year.