2.69 USD
-0.01 (-0.37%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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
- RBBN has a worse Return On Assets (-3.90%) than 60.42% of its industry peers.
- 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.
- The Return On Invested Capital of RBBN (3.55%) is comparable to the rest of the industry.
| 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
- With a Operating Margin value of 4.20%, RBBN perfoms like the industry average, outperforming 58.33% of the companies in the same 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.
- 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
- 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
- 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.
- The Debt to FCF ratio of RBBN is 6.37, which is on the high side as it means it would take RBBN, 6.37 years of fcf income to pay off all of its debts.
- RBBN has a Debt to FCF ratio (6.37) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.91, RBBN is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.32
WACC11.08%
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.
- 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.
- RBBN has a Quick Ratio of 1.17. This is a normal value and indicates that RBBN is financially healthy and should not expect problems in meeting its short term obligations.
- RBBN has a Quick ratio of 1.17. This is in the lower half of the industry: RBBN underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- RBBN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
- 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
- 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
- The Price/Earnings ratio is 12.23, which indicates a correct valuation of RBBN.
- RBBN's Price/Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 89.58% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RBBN to the average of the S&P500 Index (28.60), we can say RBBN is valued rather cheaply.
- RBBN is valuated reasonably with a Price/Forward Earnings ratio of 9.65.
- RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 97.92% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RBBN to the average of the S&P500 Index (25.83), we can say RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
- RBBN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RBBN is cheaper than 89.58% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 7.54 |
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
- No dividends for RBBN!.
| 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.