RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
19.63 USD
+0.19 (+0.98%)
19.63 USD
0 (0%)
Taking everything into account, RPD scores 4 out of 10 in our fundamental rating. RPD was compared to 280 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. RPD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RPD had positive earnings in the past year.
RPD had a positive operating cash flow in the past year.
In the past 5 years RPD reported 4 times negative net income.
In the past 5 years RPD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RPD (1.55%) is better than 64.29% of its industry peers.
RPD has a better Return On Equity (28.21%) than 91.43% of its industry peers.
With a decent Return On Invested Capital value of 1.23%, RPD is doing good in the industry, outperforming 63.93% of the companies in the same industry.
| 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 65.36% of the companies in the same industry.
RPD's Operating Margin of 2.55% is fine compared to the rest of the industry. RPD outperforms 65.36% of its industry peers.
Looking at the Gross Margin, with a value of 70.56%, RPD is in line with its industry, outperforming 55.36% 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
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.
RPD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RPD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.36, we must say that RPD is in the distress zone and has some risk of bankruptcy.
RPD has a Altman-Z score of 0.36. This is in the lower half of the industry: RPD underperforms 69.29% of its industry peers.
The Debt to FCF ratio of RPD is 5.42, which is a neutral value as it means it would take RPD, 5.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.42, RPD is in line with its industry, outperforming 57.50% of the companies in the same industry.
RPD has a Debt/Equity ratio of 9.84. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RPD (9.84) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.15
WACC8.31%
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.
With a Current ratio value of 1.36, RPD perfoms like the industry average, outperforming 43.93% of the companies in the same industry.
RPD has a Quick 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.
RPD has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
RPD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.96%.
RPD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.25% yearly.
RPD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
RPD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.89% yearly.
EPS 1Y (TTM)-5.96%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%0%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, RPD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.25% on average per year.
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-13.09%
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
EPS Next 5Y8.25%
Revenue Next Year2.22%
Revenue Next 2Y2.71%
Revenue Next 3Y3.02%
Revenue Next 5Y3.45%
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
With a Price/Earnings ratio of 8.88, the valuation of RPD can be described as very reasonable.
RPD's Price/Earnings ratio is rather cheap when compared to the industry. RPD is cheaper than 92.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of RPD to the average of the S&P500 Index (27.27), we can say RPD is valued rather cheaply.
The Price/Forward Earnings ratio is 9.70, which indicates a very decent valuation of RPD.
92.50% of the companies in the same industry are more expensive than RPD, based on the Price/Forward Earnings ratio.
RPD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued a bit cheaper than the industry average as 79.29% of the companies are valued more expensively.
RPD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RPD is cheaper than 97.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 20.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.63
+0.19 (+0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.25%
Inst Owner Change0.94%
Ins Owners1.71%
Ins Owner Change0.21%
Market Cap1.27B
Analysts69.66
Price Target25.51 (29.95%)
Short Float %5.82%
Short Ratio4.43
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)-18.14%
PT rev (3m)-22.78%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)5.22%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.7 | ||
| P/S | 1.49 | ||
| P/FCF | 7.74 | ||
| P/OCF | 6.87 | ||
| P/B | 14.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.53 |
EPS(TTM)2.21
EY11.26%
EPS(NY)2.02
Fwd EY10.31%
FCF(TTM)2.54
FCFY12.93%
OCF(TTM)2.86
OCFY14.56%
SpS13.21
BVpS1.4
TBVpS-8.65
PEG (NY)N/A
PEG (5Y)0.09
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
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 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 | 0.36 |
F-Score6
WACC8.31%
ROIC/WACC0.15
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)-5.96%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%0%
EPS Next Y-13.09%
EPS Next 2Y-5.6%
EPS Next 3Y-1.07%
EPS Next 5Y8.25%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.98%
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-1.65%
EBIT Next 3Y4.41%
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