RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
13.91 USD
+0.17 (+1.24%)
13.91 USD
0 (0%)
RPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. There are concerns on the financial health of RPD while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on RPD.
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
The Return On Assets of RPD (1.13%) is better than 61.57% of its industry peers.
The Return On Equity of RPD (14.76%) is better than 82.56% of its industry peers.
The Return On Invested Capital of RPD (0.74%) is better than 61.92% of its industry peers.
| 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
RPD has a better Profit Margin (2.19%) than 63.35% of its industry peers.
RPD has a Operating Margin of 1.58%. This is in the better half of the industry: RPD outperforms 62.28% of its industry peers.
RPD has a Gross Margin (70.44%) which is comparable to the rest of the 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 | 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%
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.
Compared to 5 years ago, RPD has more shares outstanding
The debt/assets ratio for RPD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.15, we must say that RPD is in the distress zone and has some risk of bankruptcy.
RPD's Altman-Z score of 0.15 is on the low side compared to the rest of the industry. RPD is outperformed by 69.39% 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 57.65% of the companies in the same industry.
RPD has a Debt/Equity ratio of 7.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.01, RPD is not doing good in the industry: 85.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.01 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 0.15 |
ROIC/WACC0.09
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.19 indicates that RPD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, RPD is not doing good in the industry: 64.41% of the companies in the same industry are doing better.
RPD has a Quick 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.
With a Quick ratio value of 1.19, RPD is not doing good in the industry: 63.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for RPD have decreased strongly by -15.54% in the last year.
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 3.08%.
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)3.08%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%1.54%
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.
Based on estimates for the next years, RPD will show a small growth in Revenue. The Revenue will grow by 3.45% on average per year.
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
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.
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
The Price/Earnings ratio is 6.56, which indicates a rather cheap valuation of RPD.
Compared to the rest of the industry, the Price/Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 92.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, RPD is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.85, the valuation of RPD can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 92.53% of the companies listed in the same industry.
RPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued a bit cheaper than 79.36% of the companies in the same industry.
98.22% 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 | 5.75 | ||
| EV/EBITDA | 18.52 |
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 |
13.91
+0.17 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change1.64%
Ins Owners1.66%
Ins Owner Change0.54%
Market Cap900.67M
Revenue(TTM)858.67M
Net Income(TTM)18.77M
Analysts69.66
Price Target25 (79.73%)
Short Float %5.96%
Short Ratio3.52
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)27.06%
Min EPS beat(2)24.65%
Max EPS beat(2)29.46%
EPS beat(4)3
Avg EPS beat(4)22.6%
Min EPS beat(4)-4.29%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)22.34%
EPS beat(12)11
Avg EPS beat(12)36.53%
EPS beat(16)14
Avg EPS beat(16)40.19%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.05%
Revenue beat(4)2
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)0.94%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)0.47%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)-2%
PT rev (3m)-19.78%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)0.14%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.85 | ||
| P/S | 1.05 | ||
| P/FCF | 5.75 | ||
| P/OCF | 5 | ||
| P/B | 7.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.52 |
EPS(TTM)2.12
EY15.24%
EPS(NY)2.03
Fwd EY14.6%
FCF(TTM)2.42
FCFY17.39%
OCF(TTM)2.78
OCFY19.99%
SpS13.26
BVpS1.96
TBVpS-8
PEG (NY)N/A
PEG (5Y)0.07
Graham Number9.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 14.76% | ||
| ROCE | 1.2% | ||
| ROIC | 0.74% | ||
| ROICexc | 1.15% | ||
| ROICexgc | 10.55% | ||
| OM | 1.58% | ||
| PM (TTM) | 2.19% | ||
| GM | 70.44% | ||
| FCFM | 18.24% |
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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.01 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 15.04 | ||
| Cap/Depr | 51.13% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 303.86% | ||
| Profit Quality | 834.6% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.15 |
F-Score5
WACC7.79%
ROIC/WACC0.09
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)3.08%
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-69.97%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-1.92%
EBIT Next 3Y5.19%
EBIT Next 5YN/A
FCF growth 1Y199.95%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y122.11%
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 6.56 and the Price/Book (PB) ratio is 7.08.