RACKSPACE TECHNOLOGY INC (RXT)
US7501021056 - Common Stock
RXT gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 83 industry peers in the IT Services industry. RXT may be in some trouble as it scores bad on both profitability and health. RXT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RXT has reported negative net income.
In the past year RXT had a positive cash flow from operations.
RXT had negative earnings in each of the past 5 years.
RXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RXT's Return On Assets of -24.61% is on the low side compared to the rest of the industry. RXT is outperformed by 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -24.61% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-12.88%
ROA(5y)-8.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 20.06%, RXT is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
RXT's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RXT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.06% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.38%
GM growth 5Y-12.33%
2. Health
2.1 Basic Checks
RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RXT has more shares outstanding
RXT has more shares outstanding than it did 5 years ago.
RXT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.87, we must say that RXT is in the distress zone and has some risk of bankruptcy.
RXT has a Altman-Z score of -0.87. This is amonst the worse of the industry: RXT underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.87 |
ROIC/WACCN/A
WACC6.24%
2.3 Liquidity
A Current Ratio of 0.84 indicates that RXT may have some problems paying its short term obligations.
RXT has a Current ratio of 0.84. This is amonst the worse of the industry: RXT underperforms 81.48% of its industry peers.
RXT has a Quick Ratio of 0.84. This is a bad value and indicates that RXT is not financially healthy enough and could expect problems in meeting its short term obligations.
RXT has a Quick ratio of 0.84. This is amonst the worse of the industry: RXT underperforms 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
RXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -350.00%.
RXT shows a decrease in Revenue. In the last year, the revenue decreased by -8.37%.
Measured over the past years, RXT shows a small growth in Revenue. The Revenue has been growing by 3.81% on average per year.
EPS 1Y (TTM)-350%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)-8.37%
Revenue growth 3Y2.99%
Revenue growth 5Y3.81%
Sales Q2Q%-7.73%
3.2 Future
RXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.79% yearly.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y-84.83%
EPS Next 2Y10.96%
EPS Next 3Y38.79%
EPS Next 5YN/A
Revenue Next Year-7.65%
Revenue Next 2Y-4.34%
Revenue Next 3Y-0.48%
Revenue Next 5Y3.17%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
RXT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RXT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
RXT's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.39 |
4.3 Compensation for Growth
RXT's earnings are expected to grow with 38.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.96%
EPS Next 3Y38.79%
5. Dividend
5.1 Amount
No dividends for RXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RACKSPACE TECHNOLOGY INC
NASDAQ:RXT (12/20/2024, 8:00:01 PM)
After market: 2.25 0 (0%)2.25
+0.01 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners77.17%
Inst Owner Change-2.77%
Ins Owners2.46%
Ins Owner Change-2.08%
Market Cap512.03M
Analysts50.77
Price Target2.95 (31.11%)
Short Float %2.37%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)29.1%
Min EPS beat(2)25.56%
Max EPS beat(2)32.65%
EPS beat(4)4
Avg EPS beat(4)24.71%
Min EPS beat(4)17.8%
Max EPS beat(4)32.65%
EPS beat(8)8
Avg EPS beat(8)22.6%
EPS beat(12)12
Avg EPS beat(12)17.47%
EPS beat(16)16
Avg EPS beat(16)15.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.32%
Revenue beat(16)5
Avg Revenue beat(16)-0.27%
PT rev (1m)0%
PT rev (3m)21.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.38%
EPS NY rev (1m)12.86%
EPS NY rev (3m)12.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | 8.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.39 |
EPS(TTM)-0.27
EYN/A
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)0.25
OCFY11.29%
SpS12.18
BVpS-4.17
TBVpS-11.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -24.61% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.06% | ||
| FCFM | N/A |
ROA(3y)-12.88%
ROA(5y)-8.83%
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 3Y-16.38%
GM growth 5Y-12.33%
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 20.45 | ||
| Cap/Depr | 40.46% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 37.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | -0.87 |
F-Score4
WACC6.24%
ROIC/WACCN/A
Cap/Depr(3y)24.15%
Cap/Depr(5y)27.47%
Cap/Sales(3y)3.15%
Cap/Sales(5y)4.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-350%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y-84.83%
EPS Next 2Y10.96%
EPS Next 3Y38.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.37%
Revenue growth 3Y2.99%
Revenue growth 5Y3.81%
Sales Q2Q%-7.73%
Revenue Next Year-7.65%
Revenue Next 2Y-4.34%
Revenue Next 3Y-0.48%
Revenue Next 5Y3.17%
EBIT growth 1Y-14.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.07%
EBIT Next 3Y28.98%
EBIT Next 5Y23.3%
FCF growth 1Y-135.02%
FCF growth 3Y1016.02%
FCF growth 5Y15.46%
OCF growth 1Y-79.27%
OCF growth 3Y47.55%
OCF growth 5Y-2.7%