Ribbon Communications Inc. provides networked solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally.
Undervalued with adequate balance sheet.
Share Price & News
How has Ribbon Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NU42's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NU42 underperformed the German Communications industry which returned 4.8% over the past year.
Return vs Market: NU42 underperformed the German Market which returned 14.4% over the past year.
Price Volatility Vs. Market
How volatile is Ribbon Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Ribbon Communications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NU42 (€2.68) is trading below our estimate of fair value (€5.04)
Significantly Below Fair Value: NU42 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NU42 is good value based on its PE Ratio (19.3x) compared to the Communications industry average (20x).
PE vs Market: NU42 is good value based on its PE Ratio (19.3x) compared to the German market (20.7x).
Price to Earnings Growth Ratio
PEG Ratio: NU42 is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: NU42 is good value based on its PB Ratio (0.6x) compared to the DE Communications industry average (3.1x).
How is Ribbon Communications forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NU42's forecast earnings growth (5.6% per year) is above the savings rate (-0.4%).
Earnings vs Market: NU42's earnings (5.6% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: NU42's earnings are forecast to grow, but not significantly.
Revenue vs Market: NU42's revenue (6.6% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: NU42's revenue (6.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NU42's Return on Equity is forecast to be high in 3 years time
How has Ribbon Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NU42 has a large one-off gain of $35.8M impacting its September 30 2019 financial results.
Growing Profit Margin: NU42 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NU42 has become profitable over the past 5 years, growing earnings by -12.4% per year.
Accelerating Growth: NU42 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NU42 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).
Return on Equity
High ROE: NU42's Return on Equity (2.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Ribbon Communications's financial position?
Financial Position Analysis
Short Term Liabilities: NU42's short term assets ($247.3M) exceed its short term liabilities ($205.3M).
Long Term Liabilities: NU42's short term assets ($247.3M) exceed its long term liabilities ($120.8M).
Debt to Equity History and Analysis
Debt Level: NU42's debt to equity ratio (13.2%) is considered satisfactory.
Reducing Debt: NU42's debt to equity ratio has increased from 0.8% to 13.2% over the past 5 years.
Inventory Level: NU42 has a low level of unsold assets or inventory.
Debt Coverage by Assets: NU42's debt is covered by short term assets (assets are 3x 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: NU42 is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NU42 is profitable, therefore cash runway is not a concern.
What is Ribbon Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NU42's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NU42'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 NU42's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NU42'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 NU42'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
Steven Bruny (60yo)
Mr. Steven M. Bruny serves as Interim Co-President and Chief Executive Officer at Ribbon Communications Inc. since November 14, 2019. He has been Executive Vice President of Global Sales & Services at Ribb ...
CEO Compensation Analysis
Compensation vs Market: Steven's total compensation ($USD1.40M) is above average for companies of similar size in the German market ($USD792.94K).
Compensation vs Earnings: Insufficient data to compare Steven's compensation with company performance.
|Interim Co-President & Co-CEO||0.3yrs||US$1.40m||0.10% $336.2k|
|Executive VP & CFO||2.3yrs||US$1.05m||0.17% $577.2k|
|Executive Vice President of Products||2.1yrs||US$1.58m||0.065% $216.9k|
|Interim Co-President & Co-CEO||0.3yrs||US$1.70m||0.18% $586.6k|
|Senior VP & Chief Accounting Officer||2.3yrs||no data||0.028% $93.2k|
|Head of Investor Relations||0yrs||no data||no data|
|Executive VP||1.8yrs||no data||0.065% $215.5k|
|Chief Marketing Officer & Executive VP of Business Development||2.3yrs||no data||0.083% $277.3k|
|Senior Vice President of Human Resources||0yrs||no data||no data|
|Executive VP & Chief Strategy Officer||2.3yrs||no data||0.085% $284.1k|
Experienced Management: NU42's management team is considered experienced (2.2 years average tenure).
|Independent Director||2.3yrs||US$210.00k||0.14% $466.8k|
|Independent Director||10.1yrs||US$205.00k||0.11% $366.4k|
|Independent Director||11yrs||US$230.00k||0.11% $351.6k|
|Independent Director||2.3yrs||US$195.00k||0.068% $226.0k|
|Independent Chairman||3.7yrs||US$285.00k||0.11% $355.7k|
|Independent Director||2.3yrs||US$222.00k||0.049% $163.8k|
Experienced Board: NU42's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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 9.9%.
Ribbon Communications Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Ribbon Communications Inc.
- Ticker: NU42
- Exchange: DB
- Founded: 1997
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$360.261m
- Listing Market Cap: US$333.817m
- Shares outstanding: 110.17m
- Website: https://www.ribboncommunications.com
Number of Employees
- Ribbon Communications Inc.
- 4 Technology Park Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RBBN||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||May 2000|
|NU42||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2000|
Ribbon Communications Inc. provides networked solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. The company offers service provider solutions, such as fixed network transformation, mobile network evolution, secure network interconnects, network functions virtualization, cloud communications, and communications security solutions that enables secure and innovative business and consumer communications services. Its enterprise solutions include unified communications (UC), Nortel private branch exchange evolution, UC security, contact centers, Microsoft Skype for Business, session management, and security and cloud communications solutions that allows enterprises to connect securely to SIP trunks and modernize communications networks. The company also offers solution and business consulting, system integration, deployment, and managed care services; and support services, such as managing software updates, appliance maintenance, appliance spare services and managed spares programs, and emergency assistance during disaster recovery. It serves telecommunications, wireless and cable service providers, and enterprises through direct sales and indirect channels. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Westford, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 20:48|
|End of Day Share Price||2020/02/20 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.