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RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis

NYSE:RNG - New York Stock Exchange, Inc. - US76680R2067 - Common Stock - Currency: USD

28.95  -1.82 (-5.91%)

After market: 29.4967 +0.55 (+1.89%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RNG. RNG was compared to 284 industry peers in the Software industry. RNG may be in some trouble as it scores bad on both profitability and health. RNG is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RNG was profitable.
In the past year RNG had a positive cash flow from operations.
RNG had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: RNG reported negative operating cash flow in multiple years.
RNG Yearly Net Income VS EBIT VS OCF VS FCFRNG 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 0 200M -200M -400M -600M -800M

1.2 Ratios

RNG has a Return On Assets (-5.41%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -5.41%
ROE N/A
ROIC N/A
ROA(3y)-21.83%
ROA(5y)-14.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
RNG Yearly ROA, ROE, ROICRNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

RNG has a Gross Margin of 70.41%. This is comparable to the rest of the industry: RNG outperforms 55.80% of its industry peers.
In the last couple of years the Gross Margin of RNG has declined.
The Profit Margin and Operating Margin are not available for RNG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.41%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.31%
GM growth 5Y-1.85%
RNG Yearly Profit, Operating, Gross MarginsRNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

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2

2. Health

2.1 Basic Checks

RNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
RNG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RNG Yearly Shares OutstandingRNG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
RNG Yearly Total Debt VS Total AssetsRNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

RNG has an Altman-Z score of 0.69. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
RNG has a Altman-Z score of 0.69. This is in the lower half of the industry: RNG underperforms 68.48% of its industry peers.
The Debt to FCF ratio of RNG is 4.01, which is a neutral value as it means it would take RNG, 4.01 years of fcf income to pay off all of its debts.
RNG has a Debt to FCF ratio of 4.01. This is comparable to the rest of the industry: RNG outperforms 58.70% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.01
Altman-Z 0.69
ROIC/WACCN/A
WACC10.26%
RNG Yearly LT Debt VS Equity VS FCFRNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 1.12 indicates that RNG should not have too much problems paying its short term obligations.
The Current ratio of RNG (1.12) is worse than 70.29% of its industry peers.
A Quick Ratio of 1.12 indicates that RNG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, RNG is doing worse than 69.93% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.12
RNG Yearly Current Assets VS Current LiabilitesRNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.86% over the past year.
Measured over the past years, RNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.24% on average per year.
EPS 1Y (TTM)14.86%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%13.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.57%

3.2 Future

Based on estimates for the next years, RNG will show a small growth in Earnings Per Share. The EPS will grow by 6.28% on average per year.
RNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
EPS Next Y14.65%
EPS Next 2Y13.79%
EPS Next 3Y5.15%
EPS Next 5Y6.28%
Revenue Next Year7.27%
Revenue Next 2Y7.16%
Revenue Next 3Y8.02%
Revenue Next 5Y7.65%

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.
RNG Yearly Revenue VS EstimatesRNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B
RNG Yearly EPS VS EstimatesRNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6

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8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.80, the valuation of RNG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of RNG indicates a rather cheap valuation: RNG is cheaper than 94.57% of the companies listed in the same industry.
RNG is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.81 indicates a rather cheap valuation of RNG.
RNG's Price/Forward Earnings ratio is rather cheap when compared to the industry. RNG is cheaper than 97.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RNG is valued rather cheaply.
Industry RankSector Rank
PE 7.8
Fwd PE 6.81
RNG Price Earnings VS Forward Price EarningsRNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaply inside the industry as 81.88% of the companies are valued more expensively.
97.83% of the companies in the same industry are more expensive than RNG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.81
EV/EBITDA 22.96
RNG Per share dataRNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)0.22
EPS Next 2Y13.79%
EPS Next 3Y5.15%

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0

5. Dividend

5.1 Amount

RNG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RINGCENTRAL INC-CLASS A

NYSE:RNG (2/21/2025, 8:04:00 PM)

After market: 29.4967 +0.55 (+1.89%)

28.95

-1.82 (-5.91%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners103.5%
Inst Owner Change3.66%
Ins Owners1%
Ins Owner Change-1.84%
Market Cap2.61B
Analysts71.67
Price Target42.33 (46.22%)
Short Float %6.51%
Short Ratio4.38
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)2
Avg EPS beat(2)2.26%
Min EPS beat(2)1.84%
Max EPS beat(2)2.68%
EPS beat(4)4
Avg EPS beat(4)3.99%
Min EPS beat(4)1.84%
Max EPS beat(4)7.89%
EPS beat(8)8
Avg EPS beat(8)4.73%
EPS beat(12)12
Avg EPS beat(12)6.09%
EPS beat(16)16
Avg EPS beat(16)6.77%
Revenue beat(2)2
Avg Revenue beat(2)0.11%
Min Revenue beat(2)0.1%
Max Revenue beat(2)0.11%
Revenue beat(4)3
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)0.11%
Revenue beat(8)4
Avg Revenue beat(8)-0.33%
Revenue beat(12)8
Avg Revenue beat(12)0.1%
Revenue beat(16)12
Avg Revenue beat(16)1.06%
PT rev (1m)-2.08%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 7.8
Fwd PE 6.81
P/S 1.11
P/FCF 6.81
P/OCF 5.61
P/B N/A
P/tB N/A
EV/EBITDA 22.96
EPS(TTM)3.71
EY12.82%
EPS(NY)4.25
Fwd EY14.69%
FCF(TTM)4.25
FCFY14.67%
OCF(TTM)5.16
OCFY17.82%
SpS26.19
BVpS-3.84
TBVpS-7.91
PEG (NY)0.53
PEG (5Y)0.22
Profitability
Industry RankSector Rank
ROA -5.41%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.41%
FCFM 16.22%
ROA(3y)-21.83%
ROA(5y)-14.6%
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.31%
GM growth 5Y-1.85%
F-Score7
Asset Turnover1.3
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.01
Debt/EBITDA 7.59
Cap/Depr 36.14%
Cap/Sales 3.48%
Interest Coverage N/A
Cash Conversion 260.68%
Profit Quality N/A
Current Ratio 1.12
Quick Ratio 1.12
Altman-Z 0.69
F-Score7
WACC10.26%
ROIC/WACCN/A
Cap/Depr(3y)125.41%
Cap/Depr(5y)174.13%
Cap/Sales(3y)10.71%
Cap/Sales(5y)11.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.86%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%13.95%
EPS Next Y14.65%
EPS Next 2Y13.79%
EPS Next 3Y5.15%
EPS Next 5Y6.28%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.57%
Revenue Next Year7.27%
Revenue Next 2Y7.16%
Revenue Next 3Y8.02%
Revenue Next 5Y7.65%
EBIT growth 1Y78.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year41.63%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y301.64%
FCF growth 3YN/A
FCF growth 5Y84.63%
OCF growth 1Y132.59%
OCF growth 3YN/A
OCF growth 5Y40.85%