2.81 USD
0 (0%)
2.819 USD
+0.01 (+0.32%)
We assign a fundamental rating of 3 out of 10 to RBBN. 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.
- 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
- Looking at the Return On Assets, with a value of -3.90%, RBBN is doing worse than 60.42% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -11.96%, RBBN is doing worse than 66.67% of the companies in the same industry.
- RBBN has a Return On Invested Capital of 3.55%. This is comparable to the rest of the industry: RBBN outperforms 58.33% of 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
- The Operating Margin of RBBN (4.20%) is comparable to the rest of the industry.
- RBBN's Operating Margin has improved in the last couple of years.
- The Gross Margin of RBBN (50.62%) is better than 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.
- Compared to 5 years ago, RBBN has more shares outstanding
- The debt/assets ratio for RBBN is higher compared to a year ago.
2.2 Solvency
- RBBN has an Altman-Z score of -0.62. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- RBBN has a worse Altman-Z score (-0.62) than 66.67% 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 has a Debt to FCF ratio (6.37) which is comparable to the rest of the industry.
- RBBN has a Debt/Equity ratio of 0.91. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
- RBBN has a worse Debt to Equity ratio (0.91) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.62 |
ROIC/WACC0.33
WACC10.7%
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 77.08% of its industry peers.
- A Quick Ratio of 1.17 indicates that RBBN should not have too much problems paying its short term obligations.
- RBBN has a worse Quick ratio (1.17) than 70.83% of its industry peers.
| 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.
- Looking at the last year, RBBN shows a small growth in Revenue. The Revenue has grown by 7.38% in the last 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)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.
- The Revenue is expected to grow by 4.62% on average over the next years.
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
- 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
- RBBN is valuated correctly with a Price/Earnings ratio of 12.77.
- 89.58% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.38. RBBN is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.08, the valuation of RBBN can be described as reasonable.
- 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 24.29. RBBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaper than 87.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RBBN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 7.74 |
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% |
2.81
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners75.04%
Inst Owner Change0%
Ins Owners2.6%
Ins Owner Change-0.18%
Market Cap496.25M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (108.9%)
Short Float %2.23%
Short Ratio4.22
Dividend
| Industry Rank | Sector 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)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)0%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.08 | ||
| P/S | 0.57 | ||
| P/FCF | 9.44 | ||
| P/OCF | 5.91 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)0.22
EY7.83%
EPS(NY)0.28
Fwd EY9.92%
FCF(TTM)0.3
FCFY10.6%
OCF(TTM)0.48
OCFY16.91%
SpS4.92
BVpS2.04
TBVpS-0.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.18
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
WACC10.7%
ROIC/WACC0.33
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 Year14.45%
EBIT Next 3Y17.13%
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 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.