2.94 USD
+0.05 (+1.73%)
2.94 USD
0 (0%)
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 has a correct valuation and a medium growth rate.
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.
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.
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
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.
RBBN's Gross Margin of 50.62% 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 | 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.
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 -0.61, we must say that RBBN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.61, RBBN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that RBBN is somewhat dependend on debt financing.
RBBN has a worse Debt to Equity ratio (0.91) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | -0.61 |
ROIC/WACC0.34
WACC10.57%
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 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.
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
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.
The Revenue has been growing by 8.17% on average over the past years. This is quite good.
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.
RBBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
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
RBBN is valuated correctly with a Price/Earnings ratio of 13.36.
83.33% of the companies in the same industry are more expensive than RBBN, based on the Price/Earnings ratio.
RBBN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
The Price/Forward Earnings ratio is 10.55, which indicates a very decent valuation of RBBN.
RBBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. RBBN is cheaper than 95.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, RBBN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBBN indicates a rather cheap valuation: RBBN is cheaper than 85.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RBBN is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 7.98 |
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% |
2.94
+0.05 (+1.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners75.12%
Inst Owner Change0.07%
Ins Owners2.6%
Ins Owner Change-0.08%
Market Cap519.20M
Revenue(TTM)868.59M
Net Income(TTM)-43.06M
Analysts81.54
Price Target5.87 (99.66%)
Short Float %2.18%
Short Ratio4.15
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 | 13.36 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.6 | ||
| P/FCF | 9.87 | ||
| P/OCF | 6.19 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)0.22
EY7.48%
EPS(NY)0.28
Fwd EY9.48%
FCF(TTM)0.3
FCFY10.13%
OCF(TTM)0.48
OCFY16.16%
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 | -0.61 |
F-Score7
WACC10.57%
ROIC/WACC0.34
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 of RIBBON COMMUNICATIONS INC (RBBN) stock?
ChartMill assigns a valuation rating of 6 / 10 to RIBBON COMMUNICATIONS INC (RBBN). This can be considered as Fairly Valued.
Can you provide the profitability details for RIBBON COMMUNICATIONS INC?
RIBBON COMMUNICATIONS INC (RBBN) has a profitability rating of 3 / 10.
What is the financial health of RIBBON COMMUNICATIONS INC (RBBN) stock?
The financial health rating of RIBBON COMMUNICATIONS INC (RBBN) is 2 / 10.
What is the expected EPS growth for RIBBON COMMUNICATIONS INC (RBBN) stock?
The Earnings per Share (EPS) of RIBBON COMMUNICATIONS INC (RBBN) is expected to decline by -29.28% in the next year.