RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
14.2 USD
-0.2 (-1.39%)
14.2 USD
0 (0%)
Taking everything into account, RPD scores 4 out of 10 in our fundamental rating. RPD was compared to 281 industry peers in the Software industry. RPD has a medium profitability rating, but doesn't score so well on its financial health evaluation. RPD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
RPD had negative earnings in 4 of the past 5 years.
Each year in the past 5 years RPD had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.55%, RPD is doing good in the industry, outperforming 63.51% of the companies in the same industry.
RPD's Return On Equity of 28.21% is amongst the best of the industry. RPD outperforms 91.23% of its industry peers.
RPD has a Return On Invested Capital of 1.23%. This is in the better half of the industry: RPD outperforms 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 28.21% | ||
| ROIC | 1.23% |
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
With a decent Profit Margin value of 2.98%, RPD is doing good in the industry, outperforming 64.56% of the companies in the same industry.
With a decent Operating Margin value of 2.55%, RPD is doing good in the industry, outperforming 65.26% of the companies in the same industry.
With a Gross Margin value of 70.56%, RPD perfoms like the industry average, outperforming 55.79% of the companies in the same industry.
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 | 2.55% | ||
| PM (TTM) | 2.98% | ||
| GM | 70.56% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPD 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.
RPD has a better debt/assets ratio than last year.
2.2 Solvency
RPD has an Altman-Z score of 0.23. 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 (0.23) is worse than 70.88% of its industry peers.
RPD has a debt to FCF ratio of 5.42. This is a neutral value as RPD would need 5.42 years to pay back of all of its debts.
The Debt to FCF ratio of RPD (5.42) is comparable to the rest of the industry.
RPD has a Debt/Equity ratio of 9.84. This is a high value indicating a heavy dependency on external financing.
RPD's Debt to Equity ratio of 9.84 is on the low side compared to the rest of the industry. RPD is outperformed by 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.16
WACC7.8%
2.3 Liquidity
RPD has a Current Ratio of 1.36. This is a normal value and indicates that RPD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, RPD is in line with its industry, outperforming 42.81% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that RPD should not have too much problems paying its short term obligations.
RPD has a Quick ratio of 1.36. This is comparable to the rest of the industry: RPD outperforms 43.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
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%.
Measured over the past years, RPD shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.25% on average per year.
The Revenue has grown by 8.53% in the past year. This is quite good.
Measured over the past years, RPD shows a very strong growth in Revenue. The Revenue has been growing by 20.89% on average per year.
EPS 1Y (TTM)-15.54%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-13.64%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%1.54%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
RPD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y-12.54%
EPS Next 2Y-5.41%
EPS Next 3Y-0.96%
EPS Next 5Y8.25%
Revenue Next Year2.22%
Revenue Next 2Y2.71%
Revenue Next 3Y3.02%
Revenue Next 5Y3.45%
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 6.70 indicates a rather cheap valuation of RPD.
Based on the Price/Earnings ratio, RPD is valued cheaply inside the industry as 94.04% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.06. RPD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.99, which indicates a rather cheap valuation of RPD.
Based on the Price/Forward Earnings ratio, RPD is valued cheaper than 94.39% of the companies in the same industry.
RPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
83.16% of the companies in the same industry are more expensive than RPD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 98.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| EV/EBITDA | 15.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-5.41%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.2
-0.2 (-1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change0.01%
Ins Owners1.66%
Ins Owner Change0.04%
Market Cap919.45M
Revenue(TTM)844.01M
Net Income(TTM)25.52M
Analysts69.66
Price Target25 (76.06%)
Short Float %5.99%
Short Ratio4.4
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)35.02%
Min EPS beat(2)29.46%
Max EPS beat(2)40.57%
EPS beat(4)3
Avg EPS beat(4)22.96%
Min EPS beat(4)-4.29%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)21.45%
EPS beat(12)11
Avg EPS beat(12)46.26%
EPS beat(16)14
Avg EPS beat(16)50.47%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.45%
Revenue beat(12)8
Avg Revenue beat(12)0.41%
Revenue beat(16)12
Avg Revenue beat(16)0.94%
PT rev (1m)-2%
PT rev (3m)-19.78%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)0.14%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.99 | ||
| P/S | 1.07 | ||
| P/FCF | 5.6 | ||
| P/OCF | 4.97 | ||
| P/B | 10.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.51 |
EPS(TTM)2.12
EY14.93%
EPS(NY)2.03
Fwd EY14.3%
FCF(TTM)2.54
FCFY17.87%
OCF(TTM)2.86
OCFY20.13%
SpS13.21
BVpS1.4
TBVpS-8.65
PEG (NY)N/A
PEG (5Y)0.07
Graham Number8.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 28.21% | ||
| ROCE | 2% | ||
| ROIC | 1.23% | ||
| ROICexc | 2.31% | ||
| ROICexgc | N/A | ||
| OM | 2.55% | ||
| PM (TTM) | 2.98% | ||
| GM | 70.56% | ||
| FCFM | 19.21% |
ROA(3y)-5.93%
ROA(5y)-7.98%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y0.87%
GM growth 5Y-0.53%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 13.18 | ||
| Cap/Depr | 45.35% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 3.57 | ||
| Cash Conversion | 273.94% | ||
| Profit Quality | 643.91% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.23 |
F-Score6
WACC7.8%
ROIC/WACC0.16
Cap/Depr(3y)58.23%
Cap/Depr(5y)63.81%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.54%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-13.64%
EPS Next Y-12.54%
EPS Next 2Y-5.41%
EPS Next 3Y-0.96%
EPS Next 5Y8.25%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%1.54%
Revenue Next Year2.22%
Revenue Next 2Y2.71%
Revenue Next 3Y3.02%
Revenue Next 5Y3.45%
EBIT growth 1Y-43.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-1.92%
EBIT Next 3Y5.19%
EBIT Next 5YN/A
FCF growth 1Y163.05%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y89.79%
OCF growth 3Y47.11%
OCF growth 5YN/A
RAPID7 INC / RPD FAQ
What is the fundamental rating for RPD stock?
ChartMill assigns a fundamental rating of 4 / 10 to RPD.
What is the valuation status of RAPID7 INC (RPD) stock?
ChartMill assigns a valuation rating of 7 / 10 to RAPID7 INC (RPD). This can be considered as Undervalued.
How profitable is RAPID7 INC (RPD) stock?
RAPID7 INC (RPD) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for RPD stock?
The Price/Earnings (PE) ratio for RAPID7 INC (RPD) is 6.7 and the Price/Book (PB) ratio is 10.17.