RIMINI STREET INC (RMNI)
US76674Q1076 - Common Stock
RMNI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. There are concerns on the financial health of RMNI while its profitability can be described as average. RMNI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RMNI had positive earnings in the past year.
RMNI had a negative operating cash flow in the past year.
In multiple years RMNI reported negative net income over the last 5 years.
In the past 5 years RMNI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -9.77%, RMNI perfoms like the industry average, outperforming 41.22% of the companies in the same industry.
RMNI has a better Return On Invested Capital (138.23%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMNI is significantly above the industry average of 11.54%.
The 3 year average ROIC (70.87%) for RMNI is below the current ROIC(138.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.77% | ||
| ROE | N/A | ||
| ROIC | 138.23% |
ROA(3y)5.84%
ROA(5y)2.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)70.87%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of RMNI (8.77%) is better than 75.99% of its industry peers.
In the last couple of years the Operating Margin of RMNI has remained more or less at the same level.
RMNI's Gross Margin of 60.17% is on the low side compared to the rest of the industry. RMNI is outperformed by 60.57% of its industry peers.
RMNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.77% | ||
| PM (TTM) | N/A | ||
| GM | 60.17% |
OM growth 3Y6.51%
OM growth 5Y0.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMNI is creating value.
RMNI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RMNI has been increased compared to 5 years ago.
Compared to 1 year ago, RMNI has an improved debt to assets ratio.
2.2 Solvency
RMNI has an Altman-Z score of 0.52. This is a bad value and indicates that RMNI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.52, RMNI is doing worse than 70.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC12.2
WACC11.33%
2.3 Liquidity
RMNI has a Current Ratio of 0.71. This is a bad value and indicates that RMNI is not financially healthy enough and could expect problems in meeting its short term obligations.
RMNI's Current ratio of 0.71 is on the low side compared to the rest of the industry. RMNI is outperformed by 86.38% of its industry peers.
A Quick Ratio of 0.71 indicates that RMNI may have some problems paying its short term obligations.
RMNI has a worse Quick ratio (0.71) than 85.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.69% over the past year.
RMNI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.84% yearly.
RMNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.32%.
The Revenue has been growing by 11.22% on average over the past years. This is quite good.
EPS 1Y (TTM)7.69%
EPS 3Y17.84%
EPS 5YN/A
EPS Q2Q%69.23%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y9.71%
Revenue growth 5Y11.22%
Sales Q2Q%-2.59%
3.2 Future
Based on estimates for the next years, RMNI will show a very negative growth in Earnings Per Share. The EPS will decrease by -21.05% on average per year.
RMNI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.41% yearly.
EPS Next Y-13.11%
EPS Next 2Y-21.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.85%
Revenue Next 2Y-4.41%
Revenue Next 3YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RMNI is valuated cheaply with a Price/Earnings ratio of 3.57.
Based on the Price/Earnings ratio, RMNI is valued cheaper than 98.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, RMNI is valued rather cheaply.
A Price/Forward Earnings ratio of 5.94 indicates a rather cheap valuation of RMNI.
97.85% of the companies in the same industry are more expensive than RMNI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.00. RMNI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
98.57% of the companies in the same industry are more expensive than RMNI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.12 |
4.3 Compensation for Growth
A cheap valuation may be justified as RMNI's earnings are expected to decrease with -21.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RMNI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RIMINI STREET INC
NASDAQ:RMNI (11/22/2024, 8:02:26 PM)
After market: 2 0 (0%)2
+0.07 (+3.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap181.84M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 5.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.77% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.77% | ||
| PM (TTM) | N/A | ||
| GM | 60.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y17.84%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y9.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y