2.62 USD
-0.06 (-2.24%)
At close: Jan 30, 2026
2.62 USD
0 (0%)
After Hours: 1/30/2026, 8:15:08 PM
Overall RBBN gets a fundamental rating of 3 out of 10. We evaluated RBBN against 48 industry peers in the Communications Equipment industry. Both the profitability and financial health of RBBN have multiple concerns. RBBN is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- 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
- The Return On Assets of RBBN (-3.90%) is worse than 60.42% of its industry peers.
- The Return On Equity of RBBN (-11.96%) is worse than 66.67% of its industry peers.
- The Return On Invested Capital of RBBN (3.55%) is comparable to the rest of the 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 of 4.20%. This is comparable to the rest of the industry: RBBN outperforms 58.33% of its industry peers.
- In the last couple of years the Operating Margin of RBBN has grown nicely.
- RBBN's Gross Margin of 50.62% is fine compared to the rest of the industry. RBBN outperforms 66.67% of its industry peers.
- RBBN's Gross Margin has been stable in the last couple of years.
| 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
- 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 is higher compared to a year ago.
2.2 Solvency
- RBBN has an Altman-Z score of -0.65. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.65, RBBN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of RBBN (6.37) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.91 indicates that 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 | -0.65 |
ROIC/WACC0.32
WACC11.01%
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.
- RBBN's Current ratio of 1.43 is on the low side compared to the rest of the industry. RBBN is outperformed by 77.08% 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 has a Quick ratio of 1.17. This is in the lower half of the industry: RBBN underperforms 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.
- 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
- Based on estimates for the next years, RBBN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.72% on average per year.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
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
- A Price/Earnings ratio of 11.91 indicates a reasonable valuation of RBBN.
- Compared to the rest of the industry, the Price/Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 89.58% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (28.32), we can say RBBN is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.40, the valuation of RBBN can be described as reasonable.
- Based on the Price/Forward Earnings ratio, RBBN is valued cheaper than 97.92% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 91.67% 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 | 8.8 | ||
| EV/EBITDA | 7.4 |
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
- RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.