RAPID7 INC (RPD)
US7534221046 - Common Stock
We assign a fundamental rating of 4 out of 10 to RPD. RPD was compared to 279 industry peers in the Software industry. There are concerns on the financial health of RPD while its profitability can be described as average. RPD is valued quite cheap, while showing a decent growth score. This is a good 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 each of the past 5 years.
RPD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RPD has a Return On Assets of 2.99%. This is in the better half of the industry: RPD outperforms 70.50% of its industry peers.
RPD has a Return On Invested Capital of 3.56%. This is in the better half of the industry: RPD outperforms 71.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | N/A | ||
| ROIC | 3.56% |
ROA(3y)-10.13%
ROA(5y)-9.86%
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 5.65%, RPD is doing good in the industry, outperforming 71.94% of the companies in the same industry.
The Operating Margin of RPD (5.42%) is better than 72.66% of its industry peers.
RPD has a Gross Margin (70.65%) which is in line with 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 | 5.42% | ||
| PM (TTM) | 5.65% | ||
| GM | 70.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.13%
GM growth 5Y-0.19%
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.
Compared to 1 year ago, RPD has more shares outstanding
Compared to 5 years ago, RPD has more shares outstanding
RPD has a worse debt/assets ratio than last year.
2.2 Solvency
RPD has an Altman-Z score of 0.79. This is a bad value and indicates that RPD is not financially healthy and even has some risk of bankruptcy.
RPD has a Altman-Z score of 0.79. This is in the lower half of the industry: RPD underperforms 67.99% of its industry peers.
RPD has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as RPD would need 6.00 years to pay back of all of its debts.
RPD has a Debt to FCF ratio (6.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.35
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.17 indicates that RPD should not have too much problems paying its short term obligations.
RPD's Current ratio of 1.17 is on the low side compared to the rest of the industry. RPD is outperformed by 67.99% of its industry peers.
RPD has a Quick Ratio of 1.17. 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 Quick ratio, with a value of 1.17, RPD is doing worse than 67.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.92% over the past year.
RPD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.06%.
RPD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.08% yearly.
EPS 1Y (TTM)110.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y23.64%
Revenue growth 5Y26.08%
Sales Q2Q%7.95%
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 18.24% on average per year.
Based on estimates for the next years, RPD will show a quite strong growth in Revenue. The Revenue will grow by 10.89% on average per year.
EPS Next Y48.3%
EPS Next 2Y23.04%
EPS Next 3Y17.35%
EPS Next 5Y18.24%
Revenue Next Year8.51%
Revenue Next 2Y6.97%
Revenue Next 3Y6.81%
Revenue Next 5Y10.89%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
RPD is valuated correctly with a Price/Earnings ratio of 15.68.
RPD's Price/Earnings ratio is rather cheap when compared to the industry. RPD is cheaper than 86.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, RPD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.67, RPD is valued correctly.
83.81% of the companies in the same industry are more expensive than RPD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RPD to the average of the S&P500 Index (22.83), we can say RPD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RPD indicates a somewhat cheap valuation: RPD is cheaper than 74.10% of the companies listed in the same industry.
89.93% of the companies in the same industry are more expensive than RPD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 31.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RPD's earnings are expected to grow with 17.35% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y23.04%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
No dividends for RPD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAPID7 INC
NASDAQ:RPD (12/20/2024, 8:00:01 PM)
After market: 40 +0.64 (+1.63%)39.36
-0.89 (-2.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners104.8%
Inst Owner Change-0.88%
Ins Owners1.43%
Ins Owner Change-0.64%
Market Cap2.49B
Analysts72.86
Price Target44.2 (12.3%)
Short Float %5.22%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)18.72%
Min EPS beat(2)11.34%
Max EPS beat(2)26.11%
EPS beat(4)4
Avg EPS beat(4)22.08%
Min EPS beat(4)0.99%
Max EPS beat(4)49.88%
EPS beat(8)8
Avg EPS beat(8)43.5%
EPS beat(12)11
Avg EPS beat(12)46.06%
EPS beat(16)15
Avg EPS beat(16)60.44%
Revenue beat(2)2
Avg Revenue beat(2)1.24%
Min Revenue beat(2)1.11%
Max Revenue beat(2)1.37%
Revenue beat(4)3
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)1.37%
Revenue beat(8)6
Avg Revenue beat(8)0.59%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)13
Avg Revenue beat(16)1.29%
PT rev (1m)-2.88%
PT rev (3m)-3.53%
EPS NQ rev (1m)-3.29%
EPS NQ rev (3m)-11.38%
EPS NY rev (1m)2%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 16.67 | ||
| P/S | 2.99 | ||
| P/FCF | 16 | ||
| P/OCF | 14.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.25 |
EPS(TTM)2.51
EY6.38%
EPS(NY)2.36
Fwd EY6%
FCF(TTM)2.46
FCFY6.25%
OCF(TTM)2.71
OCFY6.89%
SpS13.18
BVpS-0.1
TBVpS-10.63
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | N/A | ||
| ROCE | 4.51% | ||
| ROIC | 3.56% | ||
| ROICexc | 6.4% | ||
| ROICexgc | N/A | ||
| OM | 5.42% | ||
| PM (TTM) | 5.65% | ||
| GM | 70.65% | ||
| FCFM | 18.67% |
ROA(3y)-10.13%
ROA(5y)-9.86%
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-0.13%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | 9.86 | ||
| Cap/Depr | 35.37% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 7.1 | ||
| Cash Conversion | 190.39% | ||
| Profit Quality | 330.45% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 0.79 |
F-Score7
WACC10.31%
ROIC/WACC0.35
Cap/Depr(3y)63.94%
Cap/Depr(5y)98.95%
Cap/Sales(3y)3.87%
Cap/Sales(5y)5.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32%
EPS Next Y48.3%
EPS Next 2Y23.04%
EPS Next 3Y17.35%
EPS Next 5Y18.24%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y23.64%
Revenue growth 5Y26.08%
Sales Q2Q%7.95%
Revenue Next Year8.51%
Revenue Next 2Y6.97%
Revenue Next 3Y6.81%
Revenue Next 5Y10.89%
EBIT growth 1Y183.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year94.18%
EBIT Next 3Y32.66%
EBIT Next 5YN/A
FCF growth 1Y1447.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y301.79%
OCF growth 3Y177.31%
OCF growth 5Y76.6%