2.84 USD
+0.02 (+0.71%)
2.84 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. 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.
RBBN had a positive operating cash flow in the past year.
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 has a worse Return On Assets (-3.90%) than 62.50% of its industry peers.
The Return On Equity of RBBN (-11.96%) is worse than 64.58% of its industry peers.
With a Return On Invested Capital value of 3.55%, RBBN perfoms like the industry average, outperforming 58.33% 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 has a Operating Margin (4.20%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RBBN has grown nicely.
RBBN has a Gross Margin of 50.62%. This is in the better half of the industry: RBBN outperforms 68.75% 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
RBBN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, RBBN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.62, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
RBBN has a Altman-Z score of -0.62. This is in the lower half of the industry: RBBN underperforms 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 has a Debt to FCF ratio (6.37) which is in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
RBBN has a Debt to Equity ratio of 0.91. This is in the lower half of the industry: RBBN underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.34
WACC10.53%
2.3 Liquidity
RBBN has a Current Ratio of 1.43. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.43, RBBN is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
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 68.75% of the companies in the same industry.
| 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.
RBBN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.59% yearly.
RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
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.
RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
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
With a Price/Earnings ratio of 12.91, RBBN is valued correctly.
Based on the Price/Earnings ratio, RBBN is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, RBBN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.19, the valuation of RBBN can be described as reasonable.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 95.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 85.42% of the companies listed in the same industry.
91.67% 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 | 9.56 | ||
| EV/EBITDA | 7.78 |
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 |
2.84
+0.02 (+0.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change0.04%
Ins Owners2.49%
Ins Owner Change3.73%
Market Cap502.91M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (106.69%)
Short Float %2.17%
Short Ratio4.43
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)-32.99%
EPS NY rev (1m)-29.25%
EPS NY rev (3m)-29.25%
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 | 12.91 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.58 | ||
| P/FCF | 9.56 | ||
| P/OCF | 5.99 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)0.22
EY7.75%
EPS(NY)0.28
Fwd EY9.82%
FCF(TTM)0.3
FCFY10.46%
OCF(TTM)0.47
OCFY16.69%
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 | -0.62 |
F-Score7
WACC10.53%
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 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.
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.