RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis
NASDAQ:RBBN • US7625441040
1.965 USD
+0.02 (+0.77%)
Last: Feb 13, 2026, 10:23 AM
Taking everything into account, RBBN scores 4 out of 10 in our fundamental rating. RBBN was compared to 48 industry peers in the Communications Equipment industry. While RBBN is still in line with the averages on profitability rating, there are concerns on its financial health. RBBN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- RBBN had positive earnings in the past year.
- In the past year RBBN had a positive cash flow from operations.
- 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
- The Return On Assets of RBBN (3.27%) is better than 66.67% of its industry peers.
- RBBN's Return On Equity of 8.83% is fine compared to the rest of the industry. RBBN outperforms 75.00% of its industry peers.
- With a Return On Invested Capital value of 1.82%, RBBN perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROIC | 1.82% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of RBBN (4.69%) is better than 66.67% of its industry peers.
- RBBN's Profit Margin has declined in the last couple of years.
- The Operating Margin of RBBN (2.45%) is comparable to the rest of the industry.
- RBBN's Operating Margin has declined in the last couple of years.
- RBBN's Gross Margin of 49.81% is fine compared to the rest of the industry. RBBN outperforms 66.67% 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 | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% |
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBBN is destroying value.
- The number of shares outstanding for RBBN has been increased compared to 1 year ago.
- Compared to 5 years ago, RBBN has more shares outstanding
- The debt/assets ratio for RBBN has been reduced compared to a year ago.
2.2 Solvency
- RBBN has an Altman-Z score of -0.61. This is a bad value and indicates that RBBN is not financially healthy and even has some risk of bankruptcy.
- RBBN's Altman-Z score of -0.61 is on the low side compared to the rest of the industry. RBBN is outperformed by 68.75% of its industry peers.
- The Debt to FCF ratio of RBBN is 12.79, which is on the high side as it means it would take RBBN, 12.79 years of fcf income to pay off all of its debts.
- RBBN has a Debt to FCF ratio (12.79) which is in line with its industry peers.
- RBBN has a Debt/Equity ratio of 0.72. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
- RBBN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: RBBN underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | -0.61 |
ROIC/WACC0.21
WACC8.77%
2.3 Liquidity
- RBBN has a Current Ratio of 1.44. 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 1.44, RBBN is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
- RBBN has a Quick Ratio of 1.19. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RBBN (1.19) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
- The Earnings Per Share has been growing by 9.65% on average over the past years. This is quite good.
- RBBN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.28%.
- RBBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.02% yearly.
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
3.2 Future
- Based on estimates for the next years, RBBN will show a very negative growth in Earnings Per Share. The EPS will decrease by -23.80% on average per year.
- Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 3.02, which indicates a rather cheap valuation of RBBN.
- Based on the Price/Earnings ratio, RBBN is valued cheaper than 100.00% of the companies in the same industry.
- RBBN is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.05, the valuation of RBBN can be described as very cheap.
- Based on the Price/Forward Earnings ratio, RBBN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (27.69), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.02 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RBBN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RBBN is valued cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.32 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
- A cheap valuation may be justified as RBBN's earnings are expected to decrease with -23.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-23.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for RBBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:RBBN (2/13/2026, 10:23:10 AM)
1.965
+0.02 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-27 2026-04-27
Inst Owners75.04%
Inst Owner Change-0.17%
Ins Owners2.6%
Ins Owner Change0.08%
Market Cap347.02M
Revenue(TTM)844.56M
Net Income(TTM)39.64M
Analysts81.54
Price Target5.87 (198.73%)
Short Float %2.34%
Short Ratio5.56
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)1
Avg EPS beat(2)200.59%
Min EPS beat(2)-32.77%
Max EPS beat(2)433.95%
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)0
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)-4.04%
Revenue beat(4)1
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)1.35%
Revenue beat(8)2
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)2
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.02 | ||
| Fwd PE | 7.05 | ||
| P/S | 0.41 | ||
| P/FCF | 13.32 | ||
| P/OCF | 6.75 | ||
| P/B | 0.77 | ||
| P/tB | 72.93 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)0.65
EY33.08%
EPS(NY)0.28
Fwd EY14.19%
FCF(TTM)0.15
FCFY7.51%
OCF(TTM)0.29
OCFY14.81%
SpS4.78
BVpS2.54
TBVpS0.03
PEG (NY)N/A
PEG (5Y)0.31
Graham Number6.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 8.83% | ||
| ROCE | 2.31% | ||
| ROIC | 1.82% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 4.59% | ||
| OM | 2.45% | ||
| PM (TTM) | 4.69% | ||
| GM | 49.81% | ||
| FCFM | 3.09% |
ROA(3y)-2.39%
ROA(5y)-5.63%
ROE(3y)-6.4%
ROE(5y)-14.35%
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 3YN/A
ROICexgc growth 5Y-15.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.29%
OM growth 3YN/A
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-14.88%
GM growth 3Y0.62%
GM growth 5Y-1.39%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 12.79 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 41.6% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.99% | ||
| Profit Quality | 65.74% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | -0.61 |
F-Score7
WACC8.77%
ROIC/WACC0.21
Cap/Depr(3y)30.15%
Cap/Depr(5y)25.74%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)160%
EPS 3Y93.3%
EPS 5Y9.65%
EPS Q2Q%268.75%
EPS Next Y-57.11%
EPS Next 2Y-23.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.28%
Revenue growth 3Y1%
Revenue growth 5Y0.02%
Sales Q2Q%-9.56%
Revenue Next Year5.74%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3YN/A
EBIT growth 5Y-10.05%
EBIT Next Year47.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.81%
FCF growth 3YN/A
FCF growth 5Y-19.04%
OCF growth 1Y2.3%
OCF growth 3YN/A
OCF growth 5Y-12.74%
RIBBON COMMUNICATIONS INC / RBBN FAQ
What is the fundamental rating for RBBN stock?
ChartMill assigns a fundamental rating of 4 / 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 4 / 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 -57.11% in the next year.