RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
17.97 USD
-0.07 (-0.39%)
17.97 USD
0 (0%)
Taking everything into account, RPD scores 4 out of 10 in our fundamental rating. RPD was compared to 283 industry peers in the Software industry. There are concerns on the financial health of RPD while its profitability can be described as average. RPD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year RPD was profitable.
RPD had a positive operating cash flow in the past year.
In the past 5 years RPD reported 4 times negative net income.
RPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.55%, RPD is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.21%, RPD belongs to the top of the industry, outperforming 91.13% of the companies in the same industry.
RPD's Return On Invested Capital of 1.23% is fine compared to the rest of the industry. RPD outperforms 63.83% 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
Looking at the Profit Margin, with a value of 2.98%, RPD is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
RPD has a Operating Margin of 2.55%. This is in the better half of the industry: RPD outperforms 65.25% of its industry peers.
The Gross Margin of RPD (70.56%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RPD is destroying value.
Compared to 1 year ago, RPD has more shares outstanding
RPD has more shares outstanding than it did 5 years ago.
RPD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that RPD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.33, RPD is not doing good in the industry: 70.92% of the companies in the same industry are doing better.
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 57.45% 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.
With a Debt to Equity ratio value of 9.84, RPD is not doing good in the industry: 84.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.84 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.15
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.36 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, RPD is in line with its industry, outperforming 43.62% 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 43.97% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 95.25% on average over the past years. This is a very strong growth
RPD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing by 20.89% on average over the past years. This is a very strong growth!
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
RPD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
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-12.66%
EPS Next 2Y-5.4%
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
Based on the Price/Earnings ratio of 8.13, the valuation of RPD can be described as reasonable.
Based on the Price/Earnings ratio, RPD is valued cheaper than 92.55% of the companies in the same industry.
RPD is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.85, the valuation of RPD can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 93.62% of the companies listed in the same industry.
RPD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued cheaper than 80.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RPD is valued cheaply inside the industry as 98.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-5.4%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.97
-0.07 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change0.17%
Ins Owners1.66%
Ins Owner Change0.26%
Market Cap1.16B
Analysts69.66
Price Target25.51 (41.96%)
Short Float %5.77%
Short Ratio3.96
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)-1.55%
PT rev (3m)-22.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.49%
EPS NY rev (3m)5.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 8.85 | ||
| P/S | 1.36 | ||
| P/FCF | 7.08 | ||
| P/OCF | 6.29 | ||
| P/B | 12.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.19 |
EPS(TTM)2.21
EY12.3%
EPS(NY)2.03
Fwd EY11.3%
FCF(TTM)2.54
FCFY14.12%
OCF(TTM)2.86
OCFY15.9%
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 | 0.33 |
F-Score6
WACC8.39%
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-12.66%
EPS Next 2Y-5.4%
EPS Next 3Y-0.96%
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-1.92%
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