RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America.
Mediocre balance sheet with concerning outlook.
Share Price & News
How has RingCentral's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3RCA's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 3RCA exceeded the German Software industry which returned -3.3% over the past year.
Return vs Market: 3RCA exceeded the German Market which returned -17.5% over the past year.
Price Volatility Vs. Market
How volatile is RingCentral's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is RingCentral undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: 3RCA (€198) is trading above our estimate of fair value (€70.02)
Significantly Below Fair Value: 3RCA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 3RCA is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: 3RCA is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 3RCA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 3RCA is overvalued based on its PB Ratio (27.9x) compared to the DE Software industry average (2.3x).
How is RingCentral forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3RCA is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: 3RCA is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: 3RCA is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: 3RCA's revenue (19.6% per year) is forecast to grow faster than the German market (4.2% per year).
High Growth Revenue: 3RCA's revenue (19.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3RCA's Return on Equity is forecast to be low in 3 years time (19.4%).
How has RingCentral performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3RCA is currently unprofitable.
Growing Profit Margin: 3RCA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 3RCA is unprofitable, but has reduced losses over the past 5 years at a rate of 8.1% per year.
Accelerating Growth: Unable to compare 3RCA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 3RCA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.6%).
Return on Equity
High ROE: 3RCA has a negative Return on Equity (-7.19%), as it is currently unprofitable.
How is RingCentral's financial position?
Financial Position Analysis
Short Term Liabilities: 3RCA's short term assets ($535.5M) exceed its short term liabilities ($280.7M).
Long Term Liabilities: 3RCA's short term assets ($535.5M) exceed its long term liabilities ($424.3M).
Debt to Equity History and Analysis
Debt Level: 3RCA's debt to equity ratio (51.9%) is considered high.
Reducing Debt: 3RCA's debt to equity ratio has increased from 25.4% to 51.9% over the past 5 years.
Inventory Level: 3RCA has a low level of unsold assets or inventory.
Debt Coverage by Assets: 3RCA's debt is covered by short term assets (assets are 1.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 3RCA has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if 3RCA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is RingCentral's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 3RCA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 3RCA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 3RCA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 3RCA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 3RCA's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Vlad Shmunis (58yo)
Mr. Vladimir G. Shmunis, also known as Vlad, co-founded Ringcentral, Inc., in 1999 and has been its Chairman and Chief Executive Officer since 1999. Mr. Shmunis served as the President of Ringcentral, Inc. ...
CEO Compensation Analysis
Compensation vs Market: Vlad's total compensation ($USD7.85M) is above average for companies of similar size in the German market ($USD5.11M).
Compensation vs Earnings: Vlad's compensation has increased whilst the company is unprofitable.
|Chief Financial Officer||2.83yrs||US$3.93m||0.099% $18.6m|
|Chief Administrative Officer||3yrs||US$2.29m||0.96% $179.8m|
|Chief Strategy Officer||10.17yrs||US$2.02m||0.29% $54.3m|
|President & COO||0.17yr||no data||0.0055% $1.0m|
|Co-Founder & CTO||29.17yrs||no data||3.97% $745.6m|
|VP, Corporate Controller & Chief Accounting Officer||0.92yr||no data||0.020% $3.7m|
|Senior VP & Chief Information Officer||1.17yrs||no data||no data|
|Director of Investor Relations||no data||no data||no data|
|Senior Vice President of Marketing||1.17yrs||no data||no data|
Experienced Management: 3RCA's management team is considered experienced (2.8 years average tenure).
|Independent Director||2.75yrs||US$289.52k||0.011% $2.1m|
|Lead Director||5.17yrs||US$324.52k||0.026% $4.9m|
|Director||0.92yr||no data||0.032% $6.0m|
|Independent Director||4.42yrs||US$282.52k||0.028% $5.3m|
|Independent Director||8yrs||US$299.52k||0.011% $2.2m|
|Independent Director||5yrs||US$302.52k||0.0041% $771.6k|
Experienced Board: 3RCA's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.
RingCentral, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: RingCentral, Inc.
- Ticker: 3RCA
- Exchange: DB
- Founded: 1999
- Industry: Application Software
- Sector: Software
- Market Cap: US$20.815b
- Listing Market Cap: US$18.773b
- Shares outstanding: 87.10m
- Website: https://www.ringcentral.com
Number of Employees
- RingCentral, Inc.
- 20 Davis Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RNG||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||Sep 2013|
|3RCA||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Sep 2013|
|0V50||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||Sep 2013|
|RNG *||BMV (Bolsa Mexicana de Valores)||Yes||Class A Common Stock||MX||MXN||Sep 2013|
RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company’s products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine. Its products also comprise RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office. The company serves a range of industries, including financial services, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents and channel partners. The company was incorporated in 1999 and is headquartered in Belmont, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 23:18|
|End of Day Share Price||2020/03/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.