2.7 USD
0 (0%)
2.68 USD
-0.02 (-0.74%)
Taking everything into account, RBBN scores 3 out of 10 in our fundamental rating. RBBN was compared to 48 industry peers in the Communications Equipment industry. RBBN may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RBBN.
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.
- 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
- With a Return On Assets value of -3.90%, RBBN is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
- RBBN's Return On Equity of -11.96% is on the low side compared to the rest of the industry. RBBN is outperformed by 65.31% of its industry peers.
- With a Return On Invested Capital value of 3.55%, RBBN perfoms like the industry average, outperforming 57.14% of the companies in the same 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
- RBBN's Operating Margin of 4.20% is in line compared to the rest of the industry. RBBN outperforms 57.14% of its industry peers.
- RBBN's Operating Margin has improved in the last couple of years.
- The Gross Margin of RBBN (50.62%) is better than 67.35% of its industry peers.
- 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.
- Compared to 1 year ago, RBBN has more shares outstanding
- RBBN has more shares outstanding than it did 5 years ago.
- RBBN has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -0.64, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
- RBBN has a worse Altman-Z score (-0.64) than 67.35% of its industry peers.
- RBBN has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as RBBN would need 6.37 years to pay back of 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 55.10% of its industry peers.
- A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.91, RBBN is doing worse than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.33
WACC10.74%
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 77.55% of its industry peers.
- A Quick Ratio of 1.17 indicates that RBBN should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.17, RBBN is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- RBBN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
- 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
- The Earnings Per Share is expected to grow by 14.72% on average over the next years. This is quite good.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.27, which indicates a correct valuation of RBBN.
- Based on the Price/Earnings ratio, RBBN is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (27.21), we can say RBBN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.68, the valuation of RBBN can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 97.96% of the companies listed in the same industry.
- RBBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 85.71% of the companies in the same industry.
- 91.84% of the companies in the same industry are more expensive than RBBN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as RBBN's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
- RBBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 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 3 / 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 -29.28% in the next year.