RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
2.015 USD
-0.03 (-1.71%)
Last: Feb 18, 2026, 12:17 PM
Taking everything into account, RBBN scores 4 out of 10 in our fundamental rating. RBBN was compared to 48 industry peers in the Communications Equipment industry. RBBN has a medium profitability rating, but doesn't score so well on its financial health evaluation. RBBN is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- RBBN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RBBN has a better Return On Assets (3.27%) than 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 8.83%, RBBN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- RBBN's Return On Invested Capital of 1.82% is in line compared to the rest of the industry. RBBN outperforms 54.17% of its industry peers.
| 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
- RBBN has a better Profit Margin (4.69%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of RBBN has declined.
- Looking at the Operating Margin, with a value of 2.45%, RBBN is in line with its industry, outperforming 50.00% of the companies in the same industry.
- RBBN's Operating Margin has declined in the last couple of years.
- RBBN has a better Gross Margin (49.81%) than 66.67% of its industry peers.
- RBBN's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- The number of shares outstanding for RBBN has been increased compared to 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 -0.60. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- RBBN's Altman-Z score of -0.60 is on the low side compared to the rest of the industry. RBBN is outperformed by 66.67% of its industry peers.
- The Debt to FCF ratio of RBBN is 12.79, which is on the high side as it means it would take RBBN, 12.79 years of fcf income to pay off all of its debts.
- RBBN has a Debt to FCF ratio (12.79) which is in line with its industry peers.
- RBBN has a Debt/Equity ratio of 0.72. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
- RBBN has a worse Debt to Equity ratio (0.72) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | -0.6 |
ROIC/WACC0.21
WACC8.84%
2.3 Liquidity
- RBBN has a Current Ratio of 1.44. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of RBBN (1.44) is worse than 77.08% of its industry peers.
- RBBN has a Quick Ratio of 1.19. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.19, RBBN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
- RBBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.65% yearly.
- Looking at the last year, RBBN shows a small growth in Revenue. The Revenue has grown by 1.28% in the last year.
- RBBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
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
- RBBN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.80% yearly.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 3.10, the valuation of RBBN can be described as very cheap.
- RBBN's Price/Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.16, RBBN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.23, the valuation of RBBN can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 100.00% of the companies listed in the same industry.
- RBBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.1 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
- 89.58% 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 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
- RBBN's earnings are expected to decrease with -23.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-23.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:RBBN (2/18/2026, 12:17:54 PM)
2.015
-0.03 (-1.71%)
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 Change1.7%
Ins Owners2.6%
Ins Owner Change0.54%
Market Cap355.85M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (191.32%)
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 | 3.1 | ||
| Fwd PE | 7.23 | ||
| P/S | 0.42 | ||
| P/FCF | 13.66 | ||
| P/OCF | 6.92 | ||
| P/B | 0.79 | ||
| P/tB | 74.79 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)0.65
EY32.26%
EPS(NY)0.28
Fwd EY13.84%
FCF(TTM)0.15
FCFY7.32%
OCF(TTM)0.29
OCFY14.44%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.32
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 | -0.6 |
F-Score7
WACC8.84%
ROIC/WACC0.21
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.