NasdaqGS:RNET

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Executive Summary

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


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


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

-8.6%

RNET

3.5%

US Energy Services

2.9%

US Market


1 Year Return

-89.0%

RNET

-47.7%

US Energy Services

8.9%

US Market

Return vs Industry: RNET underperformed the US Energy Services industry which returned -48.2% over the past year.

Return vs Market: RNET underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

RNETIndustryMarket
7 Day-8.6%3.5%2.9%
30 Day-17.4%20.8%10.6%
90 Day-74.4%-18.6%5.1%
1 Year-89.0%-89.0%-46.0%-47.7%11.4%8.9%
3 Year-94.2%-94.2%-66.2%-70.9%34.3%25.4%
5 Year-97.4%-97.4%-72.2%-77.3%60.7%42.7%

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?

1.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RNET's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RNET's fair value to establish if it is undervalued.


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 (1.2x) compared to the US Energy Services industry average (0.5x).


Next Steps

Future Growth

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

67.5%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RigNet has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RigNet performed over the past 5 years?

-42.4%

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 -42.4% 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 (-58.7%).


Return on Equity

High ROE: RNET has a negative Return on Equity (-209.11%), 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 ($99.1M) exceed its short term liabilities ($64.8M).

Long Term Liabilities: RNET's short term assets ($99.1M) do not cover its long term liabilities ($136.8M).


Debt to Equity History and Analysis

Debt Level: RNET's debt to equity ratio (705.2%) is considered high.

Reducing Debt: RNET's debt to equity ratio has increased from 61% to 705.2% over the past 5 years.


Balance Sheet


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: RNET has less than a year of cash runway if free cash flow continues to reduce at historical rates of 46.6% each year


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 recent payouts.

High Dividend: Unable to evaluate RNET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

2.0yrs

Average management tenure


CEO

Steve Pickett (55yo)

4.08yrs

Tenure

US$1,860,387

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 ($USD1.86M) is above average for companies of similar size in the US market ($USD589.00K).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director4.08yrsUS$1.86m0.69% $131.5k
Lee Ahlstrom
Senior VP & CFO1.83yrsUS$1.37m0.24% $44.8k
Brad Eastman
Senior VP & General Counsel2.67yrsUS$1.01m0.20% $38.7k
Errol Olivier
Senior VP & COO0.42yrno datano data
Benjamin Carter
Interim Principal Accounting Officer and Director of Accounting & Reporting2.33yrsno data0.096% $18.3k
Brendan Sullivan
Chief Technology/Information Officer3.08yrsUS$620.95k0.18% $33.4k
Cameron Wallace
Director of Communicationsno datano datano data
Jackson Markley
Vice President of Corporate Development2yrsno datano data
Shelly Pesterfield
VP of Global Human Resources1.42yrsno datano data
Edward Traupman
Senior VP and GM of Products & Services0.83yrUS$554.48k0.16% $31.3k

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: RNET's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director4.08yrsUS$1.86m0.69% $131.5k
Kevin O'Hara
Independent Director9.5yrsUS$188.50k0.29% $56.0k
Dave Vucina
Member of Advisory Boardno datano datano data
Kevin Mulloy
Independent Director8.25yrsUS$183.50k0.13% $23.9k
Ditlef de Vibe
Independent Director9.08yrsUS$181.15k0.21% $40.1k
Keith Olsen
Independent Director9.5yrsUS$187.85k0.19% $35.6k
Brent Whittington
Independent Director9.5yrsUS$199.03k0.26% $50.2k
Mattia Caprioli
Independent Director6.67yrsno datano data
James Browning
Independent Chairman of the Board8.08yrsUS$237.85k0.25% $47.9k
Gail Smith
Independent Director2.42yrsUS$193.74k0.042% $8.0k

8.3yrs

Average Tenure

60yo

Average Age

Experienced Board: RNET's board of directors are considered experienced (8.3 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 2.6%.


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$19.024m
  • Shares outstanding: 20.02m
  • 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 Analysis2020/06/04 03:41
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.