0.9897 USD
-0.03 (-2.97%)
0.9801 USD
-0.01 (-0.97%)
Overall RXT gets a fundamental rating of 2 out of 10. We evaluated RXT against 88 industry peers in the IT Services industry. Both the profitability and financial health of RXT have multiple concerns. While showing a medium growth rate, RXT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RXT had negative earnings in the past year.
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
With a Return On Assets value of -8.76%, RXT is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-21.1%
ROA(5y)-14.12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 19.26%, RXT is doing worse than 80.68% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.45%
GM growth 5Y-14.02%
2. Health
2.1 Basic Checks
RXT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RXT has been increased compared to 1 year ago.
Compared to 5 years ago, RXT has more shares outstanding
The debt/assets ratio for RXT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -1.17, we must say that RXT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RXT (-1.17) is worse than 84.09% of its industry peers.
The Debt to FCF ratio of RXT is 45.70, which is on the high side as it means it would take RXT, 45.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 45.70, RXT is doing worse than 60.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 45.7 | ||
| Altman-Z | -1.17 |
ROIC/WACCN/A
WACC3.45%
2.3 Liquidity
A Current Ratio of 0.71 indicates that RXT may have some problems paying its short term obligations.
The Current ratio of RXT (0.71) is worse than 85.23% of its industry peers.
RXT has a Quick Ratio of 0.71. This is a bad value and indicates that RXT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RXT (0.71) is worse than 85.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
RXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.63%, which is quite impressive.
RXT shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
RXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.34% yearly.
EPS 1Y (TTM)29.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-0.68%
3.2 Future
Based on estimates for the next years, RXT will show a very strong growth in Earnings Per Share. The EPS will grow by 37.20% on average per year.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y22.31%
EPS Next 2Y42.79%
EPS Next 3Y37.2%
EPS Next 5YN/A
Revenue Next Year-1.89%
Revenue Next 2Y-0.15%
Revenue Next 3Y1.18%
Revenue Next 5Y5.45%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RXT. In the last year negative earnings were reported.
RXT is valuated quite expensively with a Price/Forward Earnings ratio of 97.99.
The rest of the industry has a similar Price/Forward Earnings ratio as RXT.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, RXT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.99 |
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.
RXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RXT is cheaper than 96.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.49 | ||
| EV/EBITDA | 27.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RXT's earnings are expected to grow with 37.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.79%
EPS Next 3Y37.2%
5. Dividend
5.1 Amount
No dividends for RXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
0.9897
-0.03 (-2.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners16.28%
Inst Owner Change-42.99%
Ins Owners3.41%
Ins Owner Change8.3%
Market Cap241.08M
Revenue(TTM)2.69B
Net Income(TTM)-249.10M
Analysts48
Price TargetN/A
Short Float %7.04%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-5.55%
Min EPS beat(2)-12.09%
Max EPS beat(2)0.99%
EPS beat(4)3
Avg EPS beat(4)16.13%
Min EPS beat(4)-12.09%
Max EPS beat(4)48.96%
EPS beat(8)7
Avg EPS beat(8)20.42%
EPS beat(12)11
Avg EPS beat(12)20.44%
EPS beat(16)15
Avg EPS beat(16)17.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)-9.18%
PT rev (3m)-9.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25%
EPS NY rev (1m)4.76%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.99 | ||
| P/S | 0.09 | ||
| P/FCF | 3.49 | ||
| P/OCF | 1.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.56 |
EPS(TTM)-0.19
EYN/A
EPS(NY)0.01
Fwd EY1.02%
FCF(TTM)0.28
FCFY28.62%
OCF(TTM)0.6
OCFY60.56%
SpS11.04
BVpS-4.87
TBVpS-10.92
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.26% | ||
| FCFM | 2.57% |
ROA(3y)-21.1%
ROA(5y)-14.12%
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 3Y-14.45%
GM growth 5Y-14.02%
F-Score4
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 45.7 | ||
| Debt/EBITDA | 25.59 | ||
| Cap/Depr | 31.3% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 121.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | -1.17 |
F-Score4
WACC3.45%
ROIC/WACCN/A
Cap/Depr(3y)28.18%
Cap/Depr(5y)27.01%
Cap/Sales(3y)3.3%
Cap/Sales(5y)3.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y22.31%
EPS Next 2Y42.79%
EPS Next 3Y37.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y-3.11%
Revenue growth 5Y2.34%
Sales Q2Q%-0.68%
Revenue Next Year-1.89%
Revenue Next 2Y-0.15%
Revenue Next 3Y1.18%
Revenue Next 5Y5.45%
EBIT growth 1Y19.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.15%
EBIT Next 3Y54.83%
EBIT Next 5Y37.34%
FCF growth 1Y-72.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-55.78%
OCF growth 3Y-52.44%
OCF growth 5Y-32.88%
RACKSPACE TECHNOLOGY INC / RXT FAQ
What is the ChartMill fundamental rating of RACKSPACE TECHNOLOGY INC (RXT) stock?
ChartMill assigns a fundamental rating of 2 / 10 to RXT.
What is the valuation status for RXT stock?
ChartMill assigns a valuation rating of 3 / 10 to RACKSPACE TECHNOLOGY INC (RXT). This can be considered as Overvalued.
What is the profitability of RXT stock?
RACKSPACE TECHNOLOGY INC (RXT) has a profitability rating of 1 / 10.
What is the financial health of RACKSPACE TECHNOLOGY INC (RXT) stock?
The financial health rating of RACKSPACE TECHNOLOGY INC (RXT) is 0 / 10.