RAPID7 INC (RPD) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:RPD • US7534221046

11.75 USD

-0.17 (-1.43%)

Last: Feb 2, 2026, 03:41 PM

Fundamental Rating

Overall RPD gets a fundamental rating of 4 out of 10. We evaluated RPD against 278 industry peers in the Software industry. While RPD is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RPD.

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1. Profitability

1.1 Basic Checks

In the past year RPD was profitable.
In the past year RPD had a positive cash flow from operations.
In the past 5 years RPD reported 4 times negative net income.
RPD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of RPD (1.13%) is better than 60.07% of its industry peers.
RPD has a better Return On Equity (14.76%) than 81.65% of its industry peers.
With a decent Return On Invested Capital value of 0.74%, RPD is doing good in the industry, outperforming 61.15% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.13%
ROE	14.76%
ROIC	0.74%

ROA(3y)-5.93%

ROA(5y)-7.98%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 2.19%, RPD is in the better half of the industry, outperforming 60.43% of the companies in the same industry.
Looking at the Operating Margin, with a value of 1.58%, RPD is in the better half of the industry, outperforming 62.59% of the companies in the same industry.
RPD's Gross Margin of 70.44% is in line compared to the rest of the industry. RPD outperforms 55.40% of its industry peers.
In the last couple of years the Gross Margin of RPD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	1.58%
PM (TTM)	2.19%
GM	70.44%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.87%

GM growth 5Y-0.53%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RPD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RPD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RPD has been increased compared to 5 years ago.
The debt/assets ratio for RPD has been reduced compared to a year ago.

2.2 Solvency

RPD has an Altman-Z score of 0.11. This is a bad value and indicates that RPD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RPD (0.11) is worse than 70.86% of its industry peers.
The Debt to FCF ratio of RPD is 5.69, which is a neutral value as it means it would take RPD, 5.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.69, RPD is in line with its industry, outperforming 55.76% of the companies in the same industry.
A Debt/Equity ratio of 7.01 is on the high side and indicates that RPD has dependencies on debt financing.
RPD has a worse Debt to Equity ratio (7.01) than 87.77% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	7.01
Debt/FCF	5.69
Altman-Z	0.11

ROIC/WACC0.1

WACC7.46%

2.3 Liquidity

RPD has a Current Ratio of 1.19. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
RPD has a worse Current ratio (1.19) than 66.55% of its industry peers.
A Quick Ratio of 1.19 indicates that RPD should not have too much problems paying its short term obligations.
RPD's Quick ratio of 1.19 is on the low side compared to the rest of the industry. RPD is outperformed by 65.83% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.19
Quick Ratio	1.19

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

RPD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.54%.
The Earnings Per Share has been growing by 95.25% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.08% in the past year.
RPD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.89% yearly.

EPS 1Y (TTM)-15.54%

EPS 3YN/A

EPS 5Y95.25%

EPS Q2Q%-13.64%

Revenue 1Y (TTM)3.08%

Revenue growth 3Y16.38%

Revenue growth 5Y20.89%

Sales Q2Q%1.54%

3.2 Future

RPD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.36% yearly.
Based on estimates for the next years, RPD will show a small growth in Revenue. The Revenue will grow by 2.05% on average per year.

EPS Next Y-8.87%

EPS Next 2Y-6.13%

EPS Next 3Y-1.84%

EPS Next 5Y2.36%

Revenue Next Year2.09%

Revenue Next 2Y1.81%

Revenue Next 3Y2.19%

Revenue Next 5Y2.05%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.54, the valuation of RPD can be described as very cheap.
93.53% of the companies in the same industry are more expensive than RPD, based on the Price/Earnings ratio.
RPD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
RPD is valuated cheaply with a Price/Forward Earnings ratio of 5.87.
Based on the Price/Forward Earnings ratio, RPD is valued cheaply inside the industry as 92.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, RPD is valued rather cheaply.

		Industry Rank	Sector Rank
PE	5.54
Fwd PE	5.87

4.2 Price Multiples

RPD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RPD is cheaper than 79.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 98.20% of the companies listed in the same industry.