RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
USA - NASDAQ:RBBN - US7625441040 - Common Stock
4 USD
-0.04 (-0.99%)
3.55 USD
-0.45 (-11.25%)
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. RBBN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RBBN had positive earnings in the past year.
RBBN had a positive operating cash flow in the past year.
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
RBBN has a worse Return On Assets (-3.89%) than 60.42% of its industry peers.
Looking at the Return On Equity, with a value of -11.98%, RBBN is doing worse than 62.50% of the companies in the same industry.
RBBN has a Return On Invested Capital (3.11%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.89% | ||
| ROE | -11.98% | ||
| ROIC | 3.11% |
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 decent Operating Margin value of 3.78%, RBBN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
In the last couple of years the Operating Margin of RBBN has grown nicely.
The Gross Margin of RBBN (51.12%) is better than 68.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.78% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% |
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.
The debt/assets ratio for RBBN is higher compared to a year ago.
2.2 Solvency
RBBN has an Altman-Z score of -0.44. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.44, RBBN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
The Debt to FCF ratio of RBBN is 43.32, which is on the high side as it means it would take RBBN, 43.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RBBN (43.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that RBBN is somewhat dependend on debt financing.
The Debt to Equity ratio of RBBN (0.88) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 43.32 | ||
| Altman-Z | -0.44 |
ROIC/WACC0.31
WACC10.11%
2.3 Liquidity
RBBN has a Current Ratio of 1.38. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RBBN (1.38) is worse than 77.08% of its industry peers.
RBBN has a Quick Ratio of 1.14. 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 Quick ratio, with a value of 1.14, RBBN is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% 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 7.68% in the past year.
RBBN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.17% yearly.
EPS 1Y (TTM)9.52%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%0%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%14.52%
3.2 Future
RBBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.20% yearly.
Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 17.39 indicates a rather expensive valuation of RBBN.
Compared to the rest of the industry, the Price/Earnings ratio of RBBN indicates a somewhat cheap valuation: RBBN is cheaper than 77.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (27.57), we can say RBBN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.65, the valuation of RBBN can be described as very 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, RBBN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBBN is valued a bit cheaper than 79.17% of the companies in the same industry.
RBBN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.22 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RBBN's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4
-0.04 (-0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change0%
Ins Owners2.49%
Ins Owner Change6.76%
Market Cap708.32M
Revenue(TTM)863.46M
Net Income(TTM)-44378000
Analysts81.54
Price Target6.2 (55%)
Short Float %2.32%
Short Ratio5.84
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)-2.96%
Min Revenue beat(2)-7.27%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-7.27%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-4.4%
Revenue beat(12)2
Avg Revenue beat(12)-3.88%
Revenue beat(16)2
Avg Revenue beat(16)-4.18%
PT rev (1m)0%
PT rev (3m)1.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 11.65 | ||
| P/S | 0.82 | ||
| P/FCF | 91.22 | ||
| P/OCF | 16.63 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)0.23
EY5.75%
EPS(NY)0.34
Fwd EY8.59%
FCF(TTM)0.04
FCFY1.1%
OCF(TTM)0.24
OCFY6.01%
SpS4.88
BVpS2.09
TBVpS-0.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.89% | ||
| ROE | -11.98% | ||
| ROCE | 3.94% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 8.53% | ||
| OM | 3.78% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% | ||
| FCFM | 0.9% |
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-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 43.32 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 56.27% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 45.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.44 |
F-Score6
WACC10.11%
ROIC/WACC0.31
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)9.52%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%0%
EPS Next Y-0.04%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%14.52%
Revenue Next Year6.14%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y127.01%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year31.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y268.8%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y545.27%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%