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RIBBON COMMUNICATIONS INC (RBBN) Stock Fundamental Analysis

NASDAQ:RBBN - Nasdaq - US7625441040 - Common Stock - Currency: USD

4.19  +0.05 (+1.21%)

After market: 4.2 +0.01 (+0.24%)

Fundamental Rating

3

Overall RBBN gets a fundamental rating of 3 out of 10. We evaluated RBBN against 50 industry peers in the Communications Equipment industry. RBBN may be in some trouble as it scores bad on both profitability and health. RBBN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
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.
RBBN Yearly Net Income VS EBIT VS OCF VS FCFRBBN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

1.2 Ratios

With a Return On Assets value of -4.40%, RBBN perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
RBBN has a worse Return On Equity (-13.12%) than 60.00% of its industry peers.
RBBN's Return On Invested Capital of 2.20% is in line compared to the rest of the industry. RBBN outperforms 58.00% of its industry peers.
Industry RankSector Rank
ROA -4.4%
ROE -13.12%
ROIC 2.2%
ROA(3y)-6.09%
ROA(5y)-5.14%
ROE(3y)-15.65%
ROE(5y)-13.53%
ROIC(3y)N/A
ROIC(5y)N/A
RBBN Yearly ROA, ROE, ROICRBBN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

With a Operating Margin value of 2.77%, RBBN perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RBBN has grown nicely.
Looking at the Gross Margin, with a value of 51.46%, RBBN is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
RBBN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.77%
PM (TTM) N/A
GM 51.46%
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%
RBBN Yearly Profit, Operating, Gross MarginsRBBN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
RBBN has a worse debt/assets ratio than last year.
RBBN Yearly Shares OutstandingRBBN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
RBBN Yearly Total Debt VS Total AssetsRBBN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of -0.45, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
RBBN's Altman-Z score of -0.45 is on the low side compared to the rest of the industry. RBBN is outperformed by 68.00% of its industry peers.
RBBN has a debt to FCF ratio of 269.08. This is a negative value and a sign of low solvency as RBBN would need 269.08 years to pay back of all of its debts.
RBBN has a Debt to FCF ratio (269.08) which is comparable to the rest of the industry.
RBBN has a Debt/Equity ratio of 0.86. This is a neutral value indicating RBBN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, RBBN is doing worse than 72.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 269.08
Altman-Z -0.45
ROIC/WACC0.21
WACC10.55%
RBBN Yearly LT Debt VS Equity VS FCFRBBN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 1.39 indicates that RBBN should not have too much problems paying its short term obligations.
The Current ratio of RBBN (1.39) is worse than 68.00% of its industry peers.
RBBN has a Quick Ratio of 1.13. 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 Quick ratio value of 1.13, RBBN is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.13
RBBN Yearly Current Assets VS Current LiabilitesRBBN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

RBBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.00%, which is quite good.
RBBN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.59% yearly.
The Revenue has been growing slightly by 1.91% in the past year.
Measured over the past years, RBBN shows a quite strong growth in Revenue. The Revenue has been growing by 8.17% on average per year.
EPS 1Y (TTM)15%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-200%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%0.9%

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 18.64% on average per year.
Based on estimates for the next years, RBBN will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y4.45%
EPS Next 2Y18.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.15%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
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.
RBBN Yearly Revenue VS EstimatesRBBN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
RBBN Yearly EPS VS EstimatesRBBN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 0.4

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.22, which indicates a rather expensive current valuation of RBBN.
RBBN's Price/Earnings ratio is a bit cheaper when compared to the industry. RBBN is cheaper than 76.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. RBBN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of RBBN can be described as reasonable.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 86.00% of the companies in the same industry.
RBBN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.22
Fwd PE 11.91
RBBN Price Earnings VS Forward Price EarningsRBBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a somewhat cheap valuation: RBBN is cheaper than 78.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBBN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 591.29
EV/EBITDA 11.69
RBBN Per share dataRBBN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RBBN does not grow enough to justify the current Price/Earnings ratio.
RBBN's earnings are expected to grow with 18.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.1
PEG (5Y)N/A
EPS Next 2Y18.64%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for RBBN!.
Industry RankSector Rank
Dividend Yield N/A

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RIBBON COMMUNICATIONS INC

NASDAQ:RBBN (7/3/2025, 8:03:23 PM)

After market: 4.2 +0.01 (+0.24%)

4.19

+0.05 (+1.21%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners73.49%
Inst Owner Change10%
Ins Owners2.43%
Ins Owner Change9.95%
Market Cap739.70M
Analysts81.67
Price Target6.02 (43.68%)
Short Float %1.48%
Short Ratio3.78
Dividend
Industry RankSector 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)-3.06%
Min Revenue beat(2)-7.27%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-4.2%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-4.82%
Revenue beat(12)1
Avg Revenue beat(12)-4.15%
Revenue beat(16)1
Avg Revenue beat(16)-4.59%
PT rev (1m)0%
PT rev (3m)-6.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
Industry RankSector Rank
PE 18.22
Fwd PE 11.91
P/S 0.89
P/FCF 591.29
P/OCF 22.01
P/B 1.94
P/tB N/A
EV/EBITDA 11.69
EPS(TTM)0.23
EY5.49%
EPS(NY)0.35
Fwd EY8.4%
FCF(TTM)0.01
FCFY0.17%
OCF(TTM)0.19
OCFY4.54%
SpS4.73
BVpS2.16
TBVpS-0.54
PEG (NY)4.1
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.4%
ROE -13.12%
ROCE 2.79%
ROIC 2.2%
ROICexc 2.41%
ROICexgc 6.45%
OM 2.77%
PM (TTM) N/A
GM 51.46%
FCFM 0.15%
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
ROICexcg growth 3Y14.11%
ROICexcg 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 Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 269.08
Debt/EBITDA 3.83
Cap/Depr 51.55%
Cap/Sales 3.87%
Interest Coverage 0.64
Cash Conversion 39.1%
Profit Quality N/A
Current Ratio 1.39
Quick Ratio 1.13
Altman-Z -0.45
F-Score6
WACC10.55%
ROIC/WACC0.21
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)15%
EPS 3Y-7.9%
EPS 5Y-12.59%
EPS Q2Q%-200%
EPS Next Y4.45%
EPS Next 2Y18.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.91%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.17%
Sales Q2Q%0.9%
Revenue Next Year6.15%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y83.91%
EBIT growth 3Y15.6%
EBIT growth 5Y45.12%
EBIT Next Year32.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y102.92%
FCF growth 3Y135.34%
FCF growth 5Y-9.42%
OCF growth 1Y210.91%
OCF growth 3Y37.8%
OCF growth 5Y-2.04%