NasdaqGS:RNET

Stock Analysis Report

Executive Summary

RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally.


Snowflake Analysis

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has RigNet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RNET's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.0%

RNET

-6.0%

US Energy Services

7.2%

US Market


1 Year Return

-85.0%

RNET

-72.2%

US Energy Services

-10.4%

US Market

Return vs Industry: RNET underperformed the US Energy Services industry which returned -72.2% over the past year.

Return vs Market: RNET underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

RNETIndustryMarket
7 Day-14.0%-6.0%7.2%
30 Day-58.0%-50.5%-12.6%
90 Day-77.6%-66.5%-19.4%
1 Year-85.0%-85.0%-71.3%-72.2%-8.5%-10.4%
3 Year-92.7%-92.7%-80.1%-82.9%15.8%8.3%
5 Year-95.5%-95.5%-81.4%-84.8%35.8%21.0%

Price Volatility Vs. Market

How volatile is RigNet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RigNet undervalued compared to its fair value and its price relative to the market?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNET ($1.48) is trading below our estimate of fair value ($2.38)

Significantly Below Fair Value: RNET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RNET is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: RNET is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RNET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNET is overvalued based on its PB Ratio (0.6x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is RigNet forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

56.9%

Forecasted Energy industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RNET's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if RNET's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if RNET's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if RNET's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RNET's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RigNet performed over the past 5 years?

-49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNET is currently unprofitable.

Growing Profit Margin: RNET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNET is unprofitable, and losses have increased over the past 5 years at a rate of -49.7% per year.

Accelerating Growth: Unable to compare RNET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RNET is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: RNET has a negative Return on Equity (-40.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is RigNet's financial position?


Financial Position Analysis

Short Term Liabilities: RNET's short term assets ($99.8M) exceed its short term liabilities ($70.5M).

Long Term Liabilities: RNET's short term assets ($99.8M) do not cover its long term liabilities ($133.6M).


Debt to Equity History and Analysis

Debt Level: RNET's debt to equity ratio (228.6%) is considered high.

Reducing Debt: RNET's debt to equity ratio has increased from 60.6% to 228.6% over the past 5 years.


Balance Sheet

Inventory Level: RNET has a high level of physical assets or inventory.

Debt Coverage by Assets: RNET's debt is not covered by short term assets (assets are 0.9x 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: RNET has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RNET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is RigNet's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RNET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RNET'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 RNET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RNET'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 RNET's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Steve Pickett (55yo)

3.83s

Tenure

US$1,966,437

Compensation

Mr. Steven E. Pickett, also known as Steve, has been Chief Executive Officer and President of RigNet, Inc. since May 31, 2016. Mr. Pickett served as the Chief Executive Officer of WesTower Communications,  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.97M) is above average for companies of similar size in the US market ($USD602.37K).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director3.83yrsUS$1.97m0.68% $201.3k
Lee Ahlstrom
Senior VP & CFO1.58yrsUS$519.97k0.23% $67.5k
Brendan Sullivan
CTO & Chief Information Officer2.83yrsUS$620.95k0.18% $52.1k
Brad Eastman
Senior VP & General Counsel2.42yrsUS$826.08k0.20% $60.3k
Jay Hilbert
Consultant0.17yrUS$653.11k0.081% $24.1k
Errol Olivier
Senior VP & Chief Operating Officer0.17yrno datano data
Benjamin Carter
Interim Principal Accounting Officer and Director of Accounting & Reporting2yrsno data0.096% $28.5k
Cameron Wallace
Director of Communicationsno datano datano data
Jackson Markley
Vice President of Corporate Development1.67yrsno datano data
Shelly Pesterfield
VP of Global Human Resources1.17yrsno datano data

1.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: RNET's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director3.83yrsUS$1.97m0.68% $201.3k
Kevin O'Hara
Independent Director9.25yrsUS$170.07k0.23% $68.9k
Dave Vucina
Member of Advisory Boardno datano datano data
Kevin Mulloy
Independent Director8yrsUS$165.07k0.064% $19.0k
Ditlef de Vibe
Independent Director8.83yrsUS$159.07k0.15% $44.2k
Keith Olsen
Independent Director9.25yrsUS$170.07k0.13% $37.2k
Brent Whittington
Independent Director9.25yrsUS$176.07k0.20% $59.9k
Mattia Caprioli
Independent Director6.42yrsno datano data
James Browning
Independent Chairman of the Board7.83yrsUS$221.75k0.19% $56.3k
Gail Smith
Independent Director2.17yrsUS$198.58k0.042% $12.5k

8.0yrs

Average Tenure

59yo

Average Age

Experienced Board: RNET's board of directors are considered experienced (8 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6%.


Top Shareholders

Company Information

RigNet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RigNet, Inc.
  • Ticker: RNET
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$29.569m
  • Shares outstanding: 19.98m
  • Website: https://www.rig.net

Number of Employees


Location

  • RigNet, Inc.
  • 15115 Park Row Boulevard
  • Suite 300
  • Houston
  • Texas
  • 77084-4947
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNETNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2010

Biography

RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally. The company operates through three segments: Managed Communications Services, Applications and Internet-of-Things (Apps & IoT), and Systems Integration. The Managed Communications Services segment provides remote communication, telephony, and technology services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. This segment also sells communications equipment; and provides installation and maintenance services. The Apps & IoT segment offers applications over-the-top of the network layer, including Software as a Service offerings, such as a real-time machine learning and artificial intelligence data platform; Cyphre encryption; cybersecurity services; edge computing solution services that assist customers with collecting and standardizing the complex data produced by edge devices; applications for safety and workforce productivity; and other value-added services. This segment also provides private machine-to-machine IoT data networks, including supervisory control and data acquisition. The Systems Integration segment engages in the design, consulting, engineering, project management, procurement, testing, installation, commissioning, and maintenance of telecommunications systems. This segment also provides monitoring and maintenance for fire and gas detection systems; and programmable logic controller and automation control systems. RigNet, Inc. was founded in 2000 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:02
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.