RIBBON COMMUNICATIONS INC (RBBN) Fundamental Analysis & Valuation

NASDAQ:RBBN • US7625441040

Current stock price

2.71 USD
+0.09 (+3.44%)
At close:
2.7998 USD
+0.09 (+3.31%)
After Hours:

This RBBN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. RBBN Profitability Analysis

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.
  • Of the past 5 years RBBN 4 years had a positive operating cash flow.
RBBN Yearly Net Income VS EBIT VS OCF VS FCFRBBN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M -150M

1.2 Ratios

  • RBBN has a Return On Assets of 3.27%. This is in the better half of the industry: RBBN outperforms 68.09% of its industry peers.
  • RBBN has a Return On Equity of 8.83%. This is in the better half of the industry: RBBN outperforms 74.47% of its industry peers.
  • RBBN has a Return On Invested Capital (1.82%) which is in line with its industry peers.
Industry RankSector 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
RBBN Yearly ROA, ROE, ROICRBBN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.69%, RBBN is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
  • RBBN's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 2.45%, RBBN is in line with its industry, outperforming 46.81% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RBBN has declined.
  • The Gross Margin of RBBN (49.81%) is better than 65.96% of its industry peers.
  • RBBN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
RBBN Yearly Profit, Operating, Gross MarginsRBBN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. RBBN Health Analysis

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.
  • Compared to 1 year ago, RBBN has about the same amount of shares outstanding.
  • 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.
RBBN Yearly Shares OutstandingRBBN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
RBBN Yearly Total Debt VS Total AssetsRBBN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • RBBN has an Altman-Z score of -0.51. 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 -0.51 is on the low side compared to the rest of the industry. RBBN is outperformed by 68.09% 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.
  • RBBN has a Debt to FCF ratio (12.79) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.72 indicates that RBBN is somewhat dependend on debt financing.
  • RBBN has a Debt to Equity ratio of 0.72. This is amonst the worse of the industry: RBBN underperforms 80.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 12.79
Altman-Z -0.51
ROIC/WACC0.16
WACC11.12%
RBBN Yearly LT Debt VS Equity VS FCFRBBN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.44 indicates that RBBN should not have too much problems paying its short term obligations.
  • RBBN has a worse Current ratio (1.44) than 78.72% 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.
  • RBBN's Quick ratio of 1.19 is on the low side compared to the rest of the industry. RBBN is outperformed by 74.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.19
RBBN Yearly Current Assets VS Current LiabilitesRBBN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. RBBN Growth Analysis

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.
  • The Revenue has been growing slightly by 1.28% in the past 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 -39.60% yearly.
  • The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y-80.12%
EPS Next 2Y-39.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.66%
Revenue Next 2Y2.43%
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.
RBBN Yearly Revenue VS EstimatesRBBN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
RBBN Yearly EPS VS EstimatesRBBN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6

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Find the best growth stocksShow best growing peers

5

4. RBBN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 4.17, the valuation of RBBN can be described as very cheap.
  • Based on the Price/Earnings ratio, RBBN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.53, RBBN is valued rather cheaply.
  • RBBN is valuated rather expensively with a Price/Forward Earnings ratio of 20.97.
  • RBBN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RBBN is cheaper than 74.47% of the companies in the same industry.
  • RBBN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.17
Fwd PE 20.97
RBBN Price Earnings VS Forward Price EarningsRBBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaply inside the industry as 85.11% of the companies are valued more expensively.
  • 72.34% of the companies in the same industry are more expensive than RBBN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.26
EV/EBITDA 8.74
RBBN Per share dataRBBN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • RBBN's earnings are expected to decrease with -39.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-39.6%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RBBN Dividend Analysis

5.1 Amount

  • RBBN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

RBBN Fundamentals: All Metrics, Ratios and Statistics

RIBBON COMMUNICATIONS INC

NASDAQ:RBBN (4/16/2026, 8:00:01 PM)

After market: 2.7998 +0.09 (+3.31%)

2.71

+0.09 (+3.44%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners75.31%
Inst Owner Change0.17%
Ins Owners2.65%
Ins Owner Change3.02%
Market Cap475.88M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts78.46
Price Target3.72 (37.27%)
Short Float %2.2%
Short Ratio3.24
Dividend
Industry RankSector 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)-36.52%
EPS NQ rev (1m)-19.35%
EPS NQ rev (3m)-1127.83%
EPS NY rev (1m)-7.32%
EPS NY rev (3m)-53.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7%
Valuation
Industry RankSector Rank
PE 4.17
Fwd PE 20.97
P/S 0.56
P/FCF 18.26
P/OCF 9.26
P/B 1.06
P/tB 100.02
EV/EBITDA 8.74
EPS(TTM)0.65
EY23.99%
EPS(NY)0.13
Fwd EY4.77%
FCF(TTM)0.15
FCFY5.48%
OCF(TTM)0.29
OCFY10.8%
SpS4.81
BVpS2.56
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.43
Graham Number6.11513 (125.65%)
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.72
Debt/FCF 12.79
Debt/EBITDA 3.98
Cap/Depr 41.6%
Cap/Sales 3%
Interest Coverage 0.54
Cash Conversion 62.99%
Profit Quality 65.74%
Current Ratio 1.44
Quick Ratio 1.19
Altman-Z -0.51
F-Score7
WACC11.12%
ROIC/WACC0.16
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-80.12%
EPS Next 2Y-39.6%
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 Year-1.66%
Revenue Next 2Y2.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3YN/A
EBIT growth 5Y-10.05%
EBIT Next Year15.98%
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 Fundamental Analysis 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 5 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Fairly Valued.


What is the profitability of RBBN stock?

RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 4 / 10.


How financially healthy is RIBBON COMMUNICATIONS INC?

The financial health rating of RIBBON COMMUNICATIONS INC (RBBN) is 2 / 10.