RINGCENTRAL INC-CLASS A (RNG) Stock Fundamental Analysis
NYSE:RNG - US76680R2067 - Common Stock
30.87 USD
+1.73 (+5.94%)
30.87 USD
0 (0%)
Taking everything into account, RNG scores 4 out of 10 in our fundamental rating. RNG was compared to 283 industry peers in the Software industry. RNG may be in some trouble as it scores bad on both profitability and health. RNG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
RNG had positive earnings in the past year.
RNG had a positive operating cash flow in the past year.
RNG had negative earnings in each of the past 5 years.
Of the past 5 years RNG 4 years had a positive operating cash flow.
1.2 Ratios
RNG has a Return On Assets (-2.46%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 6.86%, RNG is doing good in the industry, outperforming 76.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | N/A | ||
| ROIC | 6.86% |
ROA(3y)-18.06%
ROA(5y)-14.51%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of RNG (1.51%) is better than 63.96% of its industry peers.
RNG has a Gross Margin (70.54%) which is in line with its industry peers.
RNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.51% | ||
| PM (TTM) | N/A | ||
| GM | 70.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.59%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNG is destroying value.
Compared to 1 year ago, RNG has less shares outstanding
The number of shares outstanding for RNG has been increased compared to 5 years ago.
The debt/assets ratio for RNG is higher compared to a year ago.
2.2 Solvency
RNG has an Altman-Z score of 0.53. This is a bad value and indicates that RNG is not financially healthy and even has some risk of bankruptcy.
RNG has a worse Altman-Z score (0.53) than 66.08% of its industry peers.
RNG has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as RNG would need 3.01 years to pay back of all of its debts.
RNG's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. RNG outperforms 65.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.67
WACC10.31%
2.3 Liquidity
RNG has a Current Ratio of 0.65. This is a bad value and indicates that RNG is not financially healthy enough and could expect problems in meeting its short term obligations.
RNG has a Current ratio of 0.65. This is amonst the worse of the industry: RNG underperforms 86.57% of its industry peers.
RNG has a Quick Ratio of 0.65. This is a bad value and indicates that RNG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RNG (0.64) is worse than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
RNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
The Earnings Per Share has been growing by 35.24% on average over the past years. This is a very strong growth
RNG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.47%.
Measured over the past years, RNG shows a very strong growth in Revenue. The Revenue has been growing by 21.60% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%16.48%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.64%
3.2 Future
RNG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.66%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.74 indicates a rather cheap valuation of RNG.
Compared to the rest of the industry, the Price/Earnings ratio of RNG indicates a rather cheap valuation: RNG is cheaper than 93.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, RNG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of RNG.
Based on the Price/Forward Earnings ratio, RNG is valued cheaper than 95.41% of the companies in the same industry.
RNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNG is valued cheaper than 84.81% of the companies in the same industry.
RNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RNG is cheaper than 98.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 14.86 |
4.3 Compensation for Growth
RNG's 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 2Y12.4%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
RNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.87
+1.73 (+5.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.64%
Inst Owner Change3.18%
Ins Owners1.3%
Ins Owner Change6.18%
Market Cap2.79B
Analysts68.33
Price Target33.73 (9.26%)
Short Float %7.01%
Short Ratio3.44
Dividend
| Industry Rank | Sector 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)1.84%
Min EPS beat(2)0.36%
Max EPS beat(2)3.33%
EPS beat(4)4
Avg EPS beat(4)2.05%
Min EPS beat(4)0.36%
Max EPS beat(4)3.33%
EPS beat(8)8
Avg EPS beat(8)4.07%
EPS beat(12)12
Avg EPS beat(12)4.96%
EPS beat(16)16
Avg EPS beat(16)6.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)-0.27%
Revenue beat(16)10
Avg Revenue beat(16)0.54%
PT rev (1m)2.96%
PT rev (3m)-1.11%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.14 | ||
| P/FCF | 6.12 | ||
| P/OCF | 5.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.86 |
EPS(TTM)3.99
EY12.93%
EPS(NY)4.69
Fwd EY15.18%
FCF(TTM)5.04
FCFY16.34%
OCF(TTM)5.97
OCFY19.34%
SpS27
BVpS-3.8
TBVpS-7.23
PEG (NY)0.53
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | N/A | ||
| ROCE | 8.68% | ||
| ROIC | 6.86% | ||
| ROICexc | 10.8% | ||
| ROICexgc | N/A | ||
| OM | 1.51% | ||
| PM (TTM) | N/A | ||
| GM | 70.54% | ||
| FCFM | 18.68% |
ROA(3y)-18.06%
ROA(5y)-14.51%
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-0.59%
GM growth 5Y-1.04%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 37.62% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 208.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.53 |
F-Score7
WACC10.31%
ROIC/WACC0.67
Cap/Depr(3y)35.45%
Cap/Depr(5y)111.2%
Cap/Sales(3y)3.82%
Cap/Sales(5y)8.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.67%
EPS 3Y40.42%
EPS 5Y35.24%
EPS Q2Q%16.48%
EPS Next Y14.57%
EPS Next 2Y12.4%
EPS Next 3Y10.87%
EPS Next 5Y8.66%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y14.6%
Revenue growth 5Y21.6%
Sales Q2Q%4.64%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y4.89%
Revenue Next 5Y5%
EBIT growth 1Y124.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.36%
EBIT Next 3Y13.9%
EBIT Next 5Y12.28%
FCF growth 1Y200.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.94%
OCF growth 3Y46.98%
OCF growth 5Y49.46%