2.81 USD
+0.05 (+1.81%)
2.84 USD
+0.03 (+1.07%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. RBBN is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Of the past 5 years RBBN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RBBN (-3.90%) is worse 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's Return On Invested Capital of 3.55% is in line compared 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
RBBN has a Operating Margin (4.20%) which is in line with its industry peers.
RBBN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 50.62%, RBBN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 | 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.
The number of shares outstanding for RBBN has been increased compared to 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 -0.63. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.63, RBBN is doing worse than 66.67% 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.
The Debt to FCF ratio of RBBN (6.37) 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.
The Debt to Equity ratio of RBBN (0.91) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.63 |
ROIC/WACC0.33
WACC10.9%
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 worse Current ratio (1.43) than 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.
The Quick ratio of RBBN (1.17) is worse 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.
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.
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
RBBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.72% yearly.
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.
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 12.77, which indicates a correct valuation of RBBN.
Based on the Price/Earnings ratio, RBBN is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (27.25), we can say RBBN is valued rather cheaply.
RBBN is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
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 23.98. RBBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
85.42% of the companies in the same industry are more expensive than RBBN, based on the Enterprise Value to EBITDA ratio.
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 | 7.65 |
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
+0.05 (+1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners75.04%
Inst Owner Change0.01%
Ins Owners2.6%
Ins Owner Change-0.08%
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 | 7.65 |
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 | -0.63 |
F-Score7
WACC10.9%
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.