RAPID7 INC (RPD) Stock Fundamental Analysis
USA - NASDAQ:RPD - US7534221046 - Common Stock
14.03 USD
+0.26 (+1.89%)
14.03 USD
0 (0%)
Taking everything into account, RPD scores 4 out of 10 in our fundamental rating. RPD was compared to 281 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
The Return On Assets of RPD (1.13%) is better than 61.57% of its industry peers.
RPD has a Return On Equity of 14.76%. This is amongst the best in the industry. RPD outperforms 82.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.74%, RPD is in the better half of the industry, outperforming 61.57% of the companies in the same industry.
| 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's Profit Margin of 2.19% is fine compared to the rest of the industry. RPD outperforms 62.99% of its industry peers.
RPD has a better Operating Margin (1.58%) than 61.92% of its industry peers.
The Gross Margin of RPD (70.44%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RPD is destroying value.
The number of shares outstanding for RPD has been increased compared to 1 year ago.
Compared to 5 years ago, RPD has more shares outstanding
Compared to 1 year ago, RPD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.16, we must say that RPD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RPD (0.16) is worse than 70.11% of its industry peers.
RPD has a debt to FCF ratio of 5.69. This is a neutral value as RPD would need 5.69 years to pay back of all of its debts.
RPD has a Debt to FCF ratio of 5.69. This is comparable to the rest of the industry: RPD outperforms 57.65% of its industry peers.
RPD has a Debt/Equity ratio of 7.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RPD (7.01) is worse than 85.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.01 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 0.16 |
ROIC/WACC0.1
WACC7.76%
2.3 Liquidity
RPD has a Current 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 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.
RPD has a worse Quick ratio (1.19) than 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
RPD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.54%.
RPD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.25% yearly.
Looking at the last year, RPD shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
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
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
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-12.54%
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
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 cheaply with a Price/Earnings ratio of 6.62.
Based on the Price/Earnings ratio, RPD is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.89. RPD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.91 indicates a rather cheap valuation of RPD.
Based on the Price/Forward Earnings ratio, RPD is valued cheaper than 93.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RPD to the average of the S&P500 Index (34.59), we can say RPD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 6.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RPD is valued cheaper than 80.78% 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 98.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.8 | ||
| EV/EBITDA | 18.84 |
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 |
14.03
+0.26 (+1.89%)
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 Cap908.44M
Revenue(TTM)858.67M
Net Income(TTM)18.77M
Analysts69.66
Price Target25 (78.19%)
Short Float %5.99%
Short Ratio4.4
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 | 6.62 | ||
| Fwd PE | 6.91 | ||
| P/S | 1.06 | ||
| P/FCF | 5.8 | ||
| P/OCF | 5.05 | ||
| P/B | 7.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.84 |
EPS(TTM)2.12
EY15.11%
EPS(NY)2.03
Fwd EY14.48%
FCF(TTM)2.42
FCFY17.25%
OCF(TTM)2.78
OCFY19.82%
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 | 0.16 |
F-Score5
WACC7.76%
ROIC/WACC0.1
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 6.62 and the Price/Book (PB) ratio is 7.14.