RAPID7 INC (RPD)
US7534221046 - Common Stock
Overall RPD gets a fundamental rating of 3 out of 10. We evaluated RPD against 281 industry peers in the Software industry. Both the profitability and financial health of RPD have multiple concerns. RPD is valued quite cheap, while showing a decent growth score. This is a good combination!
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 always reported negative net income.
Of the past 5 years RPD 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.02%, RPD is in line with its industry, outperforming 54.09% of the companies in the same industry.
The Return On Invested Capital of RPD (3.20%) is better than 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.02% | ||
| ROE | N/A | ||
| ROIC | 3.2% |
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
The Operating Margin of RPD (4.70%) is better than 70.82% of its industry peers.
RPD has a Gross Margin (70.72%) which is in line with its industry peers.
RPD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.7% | ||
| PM (TTM) | N/A | ||
| GM | 70.72% |
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
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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that RPD is in the distress zone and has some risk of bankruptcy.
RPD has a Altman-Z score of 0.73. This is in the lower half of the industry: RPD underperforms 67.26% of its industry peers.
The Debt to FCF ratio of RPD is 8.01, which is on the high side as it means it would take RPD, 8.01 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.01, RPD perfoms like the industry average, outperforming 53.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.01 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.36
WACC8.88%
2.3 Liquidity
RPD has a Current 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.
The Current ratio of RPD (1.17) is worse than 66.55% 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.
The Quick ratio of RPD (1.17) is worse than 66.19% of its industry peers.
| 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 183.13% over the past year.
Looking at the last year, RPD shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
RPD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.08% yearly.
EPS 1Y (TTM)183.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%222.22%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y23.64%
Revenue growth 5Y26.08%
Sales Q2Q%9.23%
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 18.18% yearly.
The Revenue is expected to grow by 10.89% on average over the next years. This is quite good.
EPS Next Y40.8%
EPS Next 2Y23.43%
EPS Next 3Y19.12%
EPS Next 5Y18.18%
Revenue Next Year7.74%
Revenue Next 2Y7.99%
Revenue Next 3Y8.36%
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
The Price/Earnings ratio is 16.96, which indicates a correct valuation of RPD.
RPD's Price/Earnings ratio is rather cheap when compared to the industry. RPD is cheaper than 85.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.20. RPD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.77 indicates a correct valuation of RPD.
83.63% of the companies in the same industry are more expensive than RPD, based on the Price/Forward Earnings ratio.
RPD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
RPD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RPD is cheaper than 72.60% 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 82.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 33.34 |
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 19.12% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y23.43%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
RPD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RAPID7 INC
NASDAQ:RPD (11/4/2024, 8:00:02 PM)
After market: 39.4998 -0.35 (-0.88%)39.85
-0.1 (-0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 16.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.02% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.7% | ||
| PM (TTM) | N/A | ||
| GM | 70.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)183.13%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y40.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.34%
Revenue growth 3Y23.64%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y