2.67 USD
-0.01 (-0.37%)
Last: Jan 30, 2026, 12:40 PM
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 has a bad profitability rating. Also its financial health evaluation is rather negative. RBBN may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- Of the past 5 years RBBN 4 years had a positive operating cash flow.
1.2 Ratios
- RBBN has a worse Return On Assets (-3.90%) than 60.42% of its industry peers.
- With a Return On Equity value of -11.96%, RBBN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- RBBN has a Return On Invested Capital (3.55%) which is in line with its industry peers.
| 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 of 4.20%. This is comparable to the rest of the industry: RBBN outperforms 58.33% of its industry peers.
- RBBN's Operating Margin has improved in the last couple of years.
- RBBN's Gross Margin of 50.62% is fine compared to the rest of the industry. RBBN outperforms 66.67% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBBN is destroying value.
- RBBN has more shares outstanding than it did 1 year ago.
- RBBN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RBBN is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of -0.64, RBBN is doing worse than 68.75% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.37, RBBN is in line with its industry, outperforming 54.17% of the companies in the same industry.
- 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 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.32
WACC11.1%
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.
- Looking at the Current ratio, with a value of 1.43, RBBN is doing worse than 77.08% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that RBBN should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.17, RBBN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| 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.
- The earnings per share for RBBN have been decreasing by -12.59% on average. This is quite bad
- 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.
- 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
- RBBN is valuated correctly with a Price/Earnings ratio of 12.14.
- 89.58% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, RBBN is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.58, which indicates a very decent valuation of RBBN.
- Based on the Price/Forward Earnings ratio, RBBN is valued cheaper than 97.92% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. RBBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 9.58 |
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 91.67% of the companies listed in the same industry.
- RBBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBBN is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 7.51 |
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
- 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.