RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
1.95 USD
-0.02 (-1.02%)
At close: Feb 12, 2026
1.94 USD
-0.01 (-0.51%)
After Hours: 2/12/2026, 8:12:11 PM
RBBN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
- RBBN had positive earnings in the past year.
- In the past year RBBN had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 3.27%, RBBN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- RBBN has a better Return On Equity (8.83%) than 75.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.82%, RBBN is in line with its industry, outperforming 52.08% of the companies in the same 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
- Looking at the Profit Margin, with a value of 4.69%, RBBN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- RBBN's Profit Margin has declined in the last couple of years.
- RBBN has a Operating Margin (2.45%) which is comparable to the rest of the industry.
- RBBN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 49.81%, RBBN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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
- 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.
- 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 -0.61. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of RBBN (-0.61) is worse than 68.75% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 12.79, RBBN is in line with its industry, outperforming 43.75% of the companies in the same industry.
- 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 | -0.61 |
ROIC/WACC0.21
WACC8.77%
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.
- 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.
- 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.
- Looking at the last year, RBBN shows a small growth in Revenue. The Revenue has grown by 1.28% in the last 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.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- RBBN is valuated cheaply with a Price/Earnings ratio of 3.00.
- Compared to the rest of the industry, the Price/Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 100.00% of the companies listed in the same industry.
- RBBN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
- RBBN is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
- Based on the Price/Forward Earnings ratio, RBBN is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (27.69), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
- 91.67% of the companies in the same industry are more expensive than RBBN, based on the Enterprise Value to EBITDA ratio.
- RBBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBBN is cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 7.17 |
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)0.31
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% |
1.95
-0.02 (-1.02%)
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 Change-0.17%
Ins Owners2.6%
Ins Owner Change0.08%
Market Cap344.37M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (201.03%)
Short Float %2.34%
Short Ratio5.56
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.41 | ||
| P/FCF | 13.22 | ||
| P/OCF | 6.7 | ||
| P/B | 0.77 | ||
| P/tB | 72.38 | ||
| EV/EBITDA | 7.17 |
EPS(TTM)0.65
EY33.33%
EPS(NY)0.28
Fwd EY14.3%
FCF(TTM)0.15
FCFY7.57%
OCF(TTM)0.29
OCFY14.93%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.31
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 | -0.61 |
F-Score7
WACC8.77%
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.