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RACKSPACE TECHNOLOGY INC (RXT) Stock Fundamental Analysis

NASDAQ:RXT - Nasdaq - US7501021056 - Common Stock - Currency: USD

2.9  +0.02 (+0.69%)

After market: 2.87 -0.03 (-1.03%)

Fundamental Rating

1

Overall RXT gets a fundamental rating of 1 out of 10. We evaluated RXT against 82 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.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RXT has reported negative net income.
RXT had a positive operating cash flow in the past year.
RXT had negative earnings in each of the past 5 years.
Of the past 5 years RXT 4 years had a positive operating cash flow.
RXT Yearly Net Income VS EBIT VS OCF VS FCFRXT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M -800M

1.2 Ratios

The Return On Assets of RXT (-24.61%) is worse than 80.77% of its industry peers.
Industry RankSector 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
RXT Yearly ROA, ROE, ROICRXT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 400

1.3 Margins

With a Gross Margin value of 20.06%, RXT is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
RXT's Gross Margin has declined in the last couple of years.
RXT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
RXT Yearly Profit, Operating, Gross MarginsRXT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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2. Health

2.1 Basic Checks

RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for RXT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RXT Yearly Shares OutstandingRXT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
RXT Yearly Total Debt VS Total AssetsRXT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of -0.85, we must say that RXT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RXT (-0.85) is worse than 85.90% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.85
ROIC/WACCN/A
WACC6.57%
RXT Yearly LT Debt VS Equity VS FCFRXT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

RXT has a Current 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's Current ratio of 0.84 is on the low side compared to the rest of the industry. RXT is outperformed by 83.33% 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.
Looking at the Quick ratio, with a value of 0.84, RXT is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
RXT Yearly Current Assets VS Current LiabilitesRXT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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3. Growth

3.1 Past

RXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.33%.
EPS 1Y (TTM)-73.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.74%

3.2 Future

RXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.43% yearly.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y55.65%
EPS Next 2Y49.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.98%
Revenue Next 2Y2.14%
Revenue Next 3YN/A
Revenue Next 5Y5.45%

3.3 Evolution

RXT Yearly Revenue VS EstimatesRXT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 1B 2B 3B
RXT Yearly EPS VS EstimatesRXT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 0 0.2 -0.2 0.4 0.6 0.8

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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 RankSector Rank
PE N/A
Fwd PE N/A
RXT Price Earnings VS Forward Price EarningsRXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RXT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.36
RXT Per share dataRXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

A more expensive valuation may be justified as RXT's earnings are expected to grow with 49.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.43%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for RXT!.
Industry RankSector Rank
Dividend Yield N/A

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RACKSPACE TECHNOLOGY INC

NASDAQ:RXT (2/21/2025, 8:00:01 PM)

After market: 2.87 -0.03 (-1.03%)

2.9

+0.02 (+0.69%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners74.58%
Inst Owner Change0.16%
Ins Owners1.51%
Ins Owner Change-3.29%
Market Cap659.95M
Analysts50.77
Price Target2.95 (1.72%)
Short Float %5.85%
Short Ratio5.09
Dividend
Industry RankSector 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)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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)12.86%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.24
P/FCF N/A
P/OCF 11.42
P/B N/A
P/tB N/A
EV/EBITDA 24.36
EPS(TTM)-0.26
EYN/A
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)0.25
OCFY8.76%
SpS12.18
BVpS-4.17
TBVpS-11.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 -0.85
F-Score4
WACC6.57%
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)-73.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y55.65%
EPS Next 2Y49.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.74%
Revenue Next Year-0.98%
Revenue Next 2Y2.14%
Revenue Next 3YN/A
Revenue Next 5Y5.45%
EBIT growth 1Y-14.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.32%
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%