RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
3.08 USD
+0.04 (+1.32%)
3.08 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 has a correct valuation and a medium 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.
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
RBBN's Return On Assets of -3.90% is on the low side compared to the rest of the industry. RBBN is outperformed by 60.42% of its industry peers.
RBBN has a Return On Equity of -11.96%. This is in the lower half of the industry: RBBN underperforms 62.50% of its industry peers.
RBBN has a Return On Invested Capital (3.55%) which 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
With a Operating Margin value of 4.20%, RBBN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Operating Margin of RBBN has grown nicely.
With a decent Gross Margin value of 50.62%, RBBN is doing good in the industry, outperforming 68.75% 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 | 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
RBBN has an Altman-Z score of -0.59. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
RBBN has a worse Altman-Z score (-0.59) than 68.75% of its industry peers.
The Debt to FCF ratio of RBBN is 6.37, which is on the high side as it means it would take RBBN, 6.37 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.91 indicates that 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 | -0.59 |
ROIC/WACC0.34
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RBBN should not have too much problems paying its short term obligations.
RBBN has a Current ratio of 1.43. This is in the lower half of the industry: RBBN underperforms 70.83% of its industry peers.
A Quick Ratio of 1.17 indicates that RBBN should not have too much problems paying its short term obligations.
The Quick ratio of RBBN (1.17) is worse than 66.67% 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.
Measured over the past years, RBBN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.59% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.00 indicates a correct valuation of RBBN.
Based on the Price/Earnings ratio, RBBN is valued a bit cheaper than 79.17% of the companies in the same industry.
RBBN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of RBBN can be described as reasonable.
Based on the Price/Forward Earnings ratio, RBBN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (34.59), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
85.42% 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 | 10.37 | ||
| EV/EBITDA | 8.17 |
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
No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.08
+0.04 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change-1.15%
Ins Owners2.49%
Ins Owner Change6.73%
Market Cap545.41M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (90.58%)
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)-5.48%
EPS NQ rev (1m)-32.99%
EPS NQ rev (3m)-28.58%
EPS NY rev (1m)-29.25%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)-5.34%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)-2.08%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.63 | ||
| P/FCF | 10.37 | ||
| P/OCF | 6.5 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)0.22
EY7.14%
EPS(NY)0.28
Fwd EY9.05%
FCF(TTM)0.3
FCFY9.64%
OCF(TTM)0.47
OCFY15.39%
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 | 0.94 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | -0.59 |
F-Score7
WACC10.34%
ROIC/WACC0.34
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-29.28%
EPS Next 2Y5.6%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%2.44%
Revenue Next Year3.93%
Revenue Next 2Y4.83%
Revenue Next 3Y4.62%
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 -29.28% in the next year.