RIBBON COMMUNICATIONS INC (RBBN) Fundamental Analysis & Valuation

NASDAQ:RBBN • US7625441040

Current stock price

2.195 USD
+0 (+0.23%)
Last:

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's Return On Assets of 3.27% is fine compared to the rest of the industry. RBBN outperforms 68.75% of its industry peers.
  • RBBN's Return On Equity of 8.83% is fine compared to the rest of the industry. RBBN outperforms 77.08% 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 56.25% of the companies in the same industry.
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

  • With a decent Profit Margin value of 4.69%, RBBN is doing good in the industry, outperforming 70.83% of the companies in the same industry.
  • RBBN's Profit Margin has declined in the last couple of years.
  • RBBN's Operating Margin of 2.45% is in line compared to the rest of the industry. RBBN outperforms 50.00% of its industry peers.
  • RBBN's Operating Margin has declined in the last couple of years.
  • The Gross Margin of RBBN (49.81%) is better than 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of RBBN has remained more or less at the same level.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. RBBN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
  • RBBN has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, RBBN has more shares outstanding
  • Compared to 1 year ago, RBBN has an improved debt to assets ratio.
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

  • Based on the Altman-Z score of -0.58, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of -0.58, RBBN is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
  • 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.
  • With a Debt to Equity ratio value of 0.72, RBBN is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 12.79
Altman-Z -0.58
ROIC/WACC0.16
WACC11.15%
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

  • 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.
  • Looking at the Current ratio, with a value of 1.44, RBBN is doing worse than 77.08% of the companies in the same industry.
  • A Quick Ratio of 1.19 indicates that RBBN should not have too much problems paying 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 72.92% 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

More info and screens

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.
  • Measured over the past years, RBBN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.65% on average per year.
  • The Revenue has been growing slightly by 1.28% in the past year.
  • Measured over the past years, RBBN shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
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.
  • RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y-78.55%
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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. RBBN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 3.38, 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 25.79, RBBN is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 15.75, RBBN is valued correctly.
  • 85.42% of the companies in the same industry are more expensive than RBBN, based on the Price/Forward Earnings ratio.
  • RBBN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
Industry RankSector Rank
PE 3.38
Fwd PE 15.75
RBBN Price Earnings VS Forward Price EarningsRBBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
  • RBBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBBN is cheaper than 85.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.79
EV/EBITDA 7.62
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)0.35
EPS Next 2Y-39.6%
EPS Next 3YN/A

More info and screens

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 (3/19/2026, 3:44:07 PM)

2.195

+0 (+0.23%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)04-27
Inst Owners75.15%
Inst Owner Change1.59%
Ins Owners2.65%
Ins Owner Change3.02%
Market Cap385.44M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts78.46
Price Target3.72 (69.48%)
Short Float %2.35%
Short Ratio3.79
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)-36.52%
PT rev (3m)-36.52%
EPS NQ rev (1m)-761.17%
EPS NQ rev (3m)-961.17%
EPS NY rev (1m)-50%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)-6.8%
Revenue NQ rev (3m)-17.6%
Revenue NY rev (1m)-7%
Revenue NY rev (3m)-7%
Valuation
Industry RankSector Rank
PE 3.38
Fwd PE 15.75
P/S 0.46
P/FCF 14.79
P/OCF 7.5
P/B 0.86
P/tB 81.01
EV/EBITDA 7.62
EPS(TTM)0.65
EY29.61%
EPS(NY)0.14
Fwd EY6.35%
FCF(TTM)0.15
FCFY6.76%
OCF(TTM)0.29
OCFY13.33%
SpS4.81
BVpS2.56
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.35
Graham Number6.12
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 -0.58
F-Score7
WACC11.15%
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-78.55%
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 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 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 -78.55% in the next year.