RINGCENTRAL INC-CLASS A (RNG)
US76680R2067 - Common Stock
Taking everything into account, RNG scores 4 out of 10 in our fundamental rating. RNG was compared to 279 industry peers in the Software industry. Both the profitability and financial health of RNG have multiple concerns. An interesting combination arises when we look at growth and value: RNG is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
RNG had positive earnings in the past year.
In the past year RNG had a positive cash flow from operations.
In the past 5 years RNG always reported negative net income.
Of the past 5 years RNG 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -5.41%, RNG perfoms like the industry average, outperforming 47.31% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
RNG has a Gross Margin of 70.41%. This is comparable to the rest of the industry: RNG outperforms 55.91% of its industry peers.
RNG's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RNG so they could not be analyzed.
| Industry Rank | Sector 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%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for RNG has been increased compared to 5 years ago.
RNG has a worse debt/assets ratio than last year.
2.2 Solvency
RNG has an Altman-Z score of 0.81. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.81, RNG is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
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 (4.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 0.81 |
ROIC/WACCN/A
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.12 indicates that RNG should not have too much problems paying its short term obligations.
RNG's Current ratio of 1.12 is on the low side compared to the rest of the industry. RNG is outperformed by 70.61% of its industry peers.
RNG has a Quick Ratio of 1.12. This is a normal value and indicates that RNG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, RNG is not doing good in the industry: 69.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
RNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.88%, which is quite impressive.
RNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.21% yearly.
Looking at the last year, RNG shows a quite strong growth in Revenue. The Revenue has grown by 9.34% in the last year.
RNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.74% yearly.
EPS 1Y (TTM)20.88%
EPS 3Y48.82%
EPS 5Y33.21%
EPS Q2Q%21.79%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y22.99%
Revenue growth 5Y26.74%
Sales Q2Q%9.07%
3.2 Future
RNG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.50% yearly.
The Revenue is expected to grow by 8.53% on average over the next years. This is quite good.
EPS Next Y14.53%
EPS Next 2Y14.15%
EPS Next 3Y12.74%
EPS Next 5Y5.5%
Revenue Next Year8.81%
Revenue Next 2Y8.29%
Revenue Next 3Y7.81%
Revenue Next 5Y8.53%
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
RNG is valuated reasonably with a Price/Earnings ratio of 9.76.
94.27% of the companies in the same industry are more expensive than RNG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.65. RNG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.33, the valuation of RNG can be described as reasonable.
Based on the Price/Forward Earnings ratio, RNG is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.56. RNG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than RNG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RNG is valued cheaply inside the industry as 97.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 25.48 |
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.
A more expensive valuation may be justified as RNG's earnings are expected to grow with 12.74% in the coming years.
PEG (NY)0.67
PEG (5Y)0.29
EPS Next 2Y14.15%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
RNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RINGCENTRAL INC-CLASS A
NYSE:RNG (11/20/2024, 8:04:00 PM)
After market: 35 -0.04 (-0.11%)35.04
-0.52 (-1.46%)
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 Cap3.22B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 9.76 | ||
| Fwd PE | 8.33 | ||
| 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)0.67
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.41% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.41% | ||
| 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 Turnover1.3
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 | 1.12 | ||
| Quick Ratio | 1.12 | ||
| 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)20.88%
EPS 3Y48.82%
EPS 5Y
EPS Q2Q%
EPS Next Y14.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.34%
Revenue growth 3Y22.99%
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