RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - Nasdaq - US7534221046 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RPD. RPD was compared to 283 industry peers in the Software industry. RPD has a medium profitability rating, but doesn't score so well on its financial health evaluation. RPD is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
RPD had positive earnings in the past year.
In the past year RPD had a positive cash flow from operations.
In the past 5 years RPD reported 4 times negative net income.
Each year in the past 5 years RPD had a positive operating cash flow.
1.2 Ratios
RPD has a better Return On Assets (1.77%) than 65.22% of its industry peers.
With an excellent Return On Equity value of 164.75%, RPD belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
RPD has a better Return On Invested Capital (2.38%) than 68.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 164.75% | ||
| ROIC | 2.38% |
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 3.46%, RPD is in the better half of the industry, outperforming 65.94% of the companies in the same industry.
The Operating Margin of RPD (4.67%) is better than 71.01% of its industry peers.
RPD has a Gross Margin (70.30%) which is comparable to the rest of the industry.
RPD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.67% | ||
| PM (TTM) | 3.46% | ||
| GM | 70.3% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPD is destroying value.
The number of shares outstanding for RPD has been increased compared to 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 0.60. This is a bad value and indicates that RPD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.60, RPD is not doing good in the industry: 68.84% of the companies in the same industry are doing better.
The Debt to FCF ratio of RPD is 6.06, which is on the high side as it means it would take RPD, 6.06 years of fcf income to pay off all of its debts.
RPD has a Debt to FCF ratio of 6.06. This is comparable to the rest of the industry: RPD outperforms 53.99% of its industry peers.
A Debt/Equity ratio of 50.16 is on the high side and indicates that RPD has dependencies on debt financing.
RPD has a Debt to Equity ratio of 50.16. This is amonst the worse of the industry: RPD underperforms 89.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 50.16 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.21
WACC11.07%
2.3 Liquidity
A Current Ratio of 1.25 indicates that RPD should not have too much problems paying its short term obligations.
RPD's Current ratio of 1.25 is on the low side compared to the rest of the industry. RPD is outperformed by 63.41% of its industry peers.
A Quick Ratio of 1.25 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, RPD is doing worse than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
RPD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.51%, which is quite impressive.
RPD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.25% yearly.
The Revenue has grown by 8.53% in the past year. This is quite good.
RPD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.89% yearly.
EPS 1Y (TTM)45.51%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%5.36%
3.2 Future
The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.13% on average over the next years. This is quite good.
EPS Next Y-17.26%
EPS Next 2Y-5.22%
EPS Next 3Y1.72%
EPS Next 5Y12.11%
Revenue Next Year3.28%
Revenue Next 2Y4.03%
Revenue Next 3Y4.71%
Revenue Next 5Y11.13%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.97 indicates a correct valuation of RPD.
Based on the Price/Earnings ratio, RPD is valued cheaper than 87.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. RPD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 16.88 indicates a correct valuation of RPD.
85.14% 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 valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued a bit cheaper than 76.45% 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 92.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.01 | ||
| EV/EBITDA | 26.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-5.22%
EPS Next 3Y1.72%
5. Dividend
5.1 Amount
No dividends for RPD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.71
-0.97 (-2.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.45%
Inst Owner Change-94.25%
Ins Owners1.38%
Ins Owner Change2.85%
Market Cap2.00B
Analysts71.43
Price Target40.81 (28.7%)
Short Float %5.42%
Short Ratio4.62
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)1
Avg EPS beat(2)10.91%
Min EPS beat(2)-4.29%
Max EPS beat(2)26.11%
EPS beat(4)3
Avg EPS beat(4)8.53%
Min EPS beat(4)-4.29%
Max EPS beat(4)26.11%
EPS beat(8)7
Avg EPS beat(8)31.29%
EPS beat(12)10
Avg EPS beat(12)45.35%
EPS beat(16)14
Avg EPS beat(16)59.55%
Revenue beat(2)2
Avg Revenue beat(2)1.15%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.37%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)1.37%
Revenue beat(8)6
Avg Revenue beat(8)0.49%
Revenue beat(12)9
Avg Revenue beat(12)0.65%
Revenue beat(16)13
Avg Revenue beat(16)1.15%
PT rev (1m)-7.66%
PT rev (3m)-7.66%
EPS NQ rev (1m)-25.43%
EPS NQ rev (3m)-25.91%
EPS NY rev (1m)-20.47%
EPS NY rev (3m)-20.47%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 16.88 | ||
| P/S | 2.37 | ||
| P/FCF | 13.01 | ||
| P/OCF | 11.68 | ||
| P/B | 113.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.44 |
EPS(TTM)2.27
EY7.16%
EPS(NY)1.88
Fwd EY5.92%
FCF(TTM)2.44
FCFY7.69%
OCF(TTM)2.72
OCFY8.56%
SpS13.35
BVpS0.28
TBVpS-10.18
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 164.75% | ||
| ROCE | 3.86% | ||
| ROIC | 2.38% | ||
| ROICexc | 4.86% | ||
| ROICexgc | N/A | ||
| OM | 4.67% | ||
| PM (TTM) | 3.46% | ||
| GM | 70.3% | ||
| FCFM | 18.26% |
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 50.16 | ||
| Debt/FCF | 6.06 | ||
| Debt/EBITDA | 10.53 | ||
| Cap/Depr | 39.18% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 6.2 | ||
| Cash Conversion | 203.56% | ||
| Profit Quality | 528.06% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.6 |
F-Score7
WACC11.07%
ROIC/WACC0.21
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)45.51%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-33.33%
EPS Next Y-17.26%
EPS Next 2Y-5.22%
EPS Next 3Y1.72%
EPS Next 5Y12.11%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%5.36%
Revenue Next Year3.28%
Revenue Next 2Y4.03%
Revenue Next 3Y4.71%
Revenue Next 5Y11.13%
EBIT growth 1Y243.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y83.36%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y64.63%
OCF growth 3Y47.11%
OCF growth 5YN/A