RAPID7 INC (RPD) Stock Fundamental Analysis
NASDAQ:RPD - Nasdaq - US7534221046 - Common Stock - Currency: USD
RPD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 282 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RPD was profitable.
RPD had a positive operating cash flow in the past year.
RPD had negative earnings in 4 of the past 5 years.
RPD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RPD's Return On Assets of 1.54% is fine compared to the rest of the industry. RPD outperforms 68.09% of its industry peers.
RPD's Return On Equity of 48.13% is amongst the best of the industry. RPD outperforms 95.74% of its industry peers.
RPD's Return On Invested Capital of 1.48% is fine compared to the rest of the industry. RPD outperforms 68.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 48.13% | ||
| ROIC | 1.48% |
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 2.99%, RPD is in the better half of the industry, outperforming 69.50% of the companies in the same industry.
RPD has a better Operating Margin (2.98%) than 68.79% of its industry peers.
RPD has a Gross Margin (70.60%) 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 | 2.98% | ||
| PM (TTM) | 2.99% | ||
| GM | 70.6% |
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
RPD has an Altman-Z score of 0.41. This is a bad value and indicates that RPD is not financially healthy and even has some risk of bankruptcy.
RPD has a worse Altman-Z score (0.41) than 67.73% of its industry peers.
RPD has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as RPD would need 6.18 years to pay back of all of its debts.
RPD has a Debt to FCF ratio of 6.18. This is comparable to the rest of the industry: RPD outperforms 55.67% of its industry peers.
A Debt/Equity ratio of 16.87 is on the high side and indicates that RPD has dependencies on debt financing.
RPD's Debt to Equity ratio of 16.87 is on the low side compared to the rest of the industry. RPD is outperformed by 84.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.23
WACC6.35%
2.3 Liquidity
RPD has a Current Ratio of 1.24. 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 1.24, RPD is not doing good in the industry: 60.64% of the companies in the same industry are doing better.
A Quick Ratio of 1.24 indicates that RPD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, RPD is doing worse than 60.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.33% over the past year.
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 6.20%.
The Revenue has been growing by 20.89% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.33%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-10.91%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
Based on estimates for the next years, RPD will show a small growth in Revenue. The Revenue will grow by 4.36% on average per year.
EPS Next Y-17.53%
EPS Next 2Y-6.92%
EPS Next 3Y-1.21%
EPS Next 5Y9.51%
Revenue Next Year2.27%
Revenue Next 2Y3.16%
Revenue Next 3Y4.05%
Revenue Next 5Y4.36%
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
RPD is valuated reasonably with a Price/Earnings ratio of 10.86.
Compared to the rest of the industry, the Price/Earnings ratio of RPD indicates a rather cheap valuation: RPD is cheaper than 91.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. RPD is valued rather cheaply when compared to this.
RPD is valuated correctly with a Price/Forward Earnings ratio of 12.20.
90.07% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
RPD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RPD is cheaper than 78.37% 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 95.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 25.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-6.92%
EPS Next 3Y-1.21%
5. Dividend
5.1 Amount
No dividends for RPD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24
-0.04 (-0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.39%
Inst Owner Change0.85%
Ins Owners1.62%
Ins Owner Change2.07%
Market Cap1.54B
Analysts70.34
Price Target33.03 (37.63%)
Short Float %5.25%
Short Ratio3.68
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)18.14%
Min EPS beat(2)-4.29%
Max EPS beat(2)40.57%
EPS beat(4)3
Avg EPS beat(4)18.43%
Min EPS beat(4)-4.29%
Max EPS beat(4)40.57%
EPS beat(8)7
Avg EPS beat(8)25.71%
EPS beat(12)11
Avg EPS beat(12)49.33%
EPS beat(16)14
Avg EPS beat(16)58.83%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.94%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)1.04%
PT rev (1m)-10.75%
PT rev (3m)-18.53%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)4.49%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 12.2 | ||
| P/S | 1.82 | ||
| P/FCF | 10.2 | ||
| P/OCF | 9.05 | ||
| P/B | 29.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.3 |
EPS(TTM)2.21
EY9.21%
EPS(NY)1.97
Fwd EY8.19%
FCF(TTM)2.35
FCFY9.81%
OCF(TTM)2.65
OCFY11.05%
SpS13.22
BVpS0.82
TBVpS-9.38
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 48.13% | ||
| ROCE | 2.4% | ||
| ROIC | 1.48% | ||
| ROICexc | 2.77% | ||
| ROICexgc | N/A | ||
| OM | 2.98% | ||
| PM (TTM) | 2.99% | ||
| GM | 70.6% | ||
| FCFM | 17.81% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.87 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 12.61 | ||
| Cap/Depr | 42.32% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 4.84 | ||
| Cash Conversion | 241.61% | ||
| Profit Quality | 596.01% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.41 |
F-Score7
WACC6.35%
ROIC/WACC0.23
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)13.33%
EPS 3YN/A
EPS 5Y95.25%
EPS Q2Q%-10.91%
EPS Next Y-17.53%
EPS Next 2Y-6.92%
EPS Next 3Y-1.21%
EPS Next 5Y9.51%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y16.38%
Revenue growth 5Y20.89%
Sales Q2Q%2.51%
Revenue Next Year2.27%
Revenue Next 2Y3.16%
Revenue Next 3Y4.05%
Revenue Next 5Y4.36%
EBIT growth 1Y275.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-6.56%
EBIT Next 3Y6.46%
EBIT Next 5YN/A
FCF growth 1Y324.43%
FCF growth 3Y63.8%
FCF growth 5YN/A
OCF growth 1Y131.34%
OCF growth 3Y47.11%
OCF growth 5YN/A