NasdaqGS:RNET

Stock Analysis Report

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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

Mediocre 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

26.6%

RNET

4.1%

US Energy Services

0.5%

US Market


1 Year Return

-51.1%

RNET

-36.9%

US Energy Services

18.0%

US Market

Return vs Industry: RNET underperformed the US Energy Services industry which returned -36.9% over the past year.

Return vs Market: RNET underperformed the US Market which returned 18% over the past year.


Shareholder returns

RNETIndustryMarket
7 Day26.6%4.1%0.5%
30 Day92.6%11.2%4.5%
90 Day332.5%32.7%19.7%
1 Year-51.1%-51.1%-34.8%-36.9%20.5%18.0%
3 Year-75.5%-75.5%-59.5%-62.8%46.3%36.8%
5 Year-85.4%-85.4%-62.3%-69.2%87.2%66.8%

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?

6.01x

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 US 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 (6x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

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

-5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNET is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RNET is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RNET is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RNET's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: RNET's revenue is forecast to decline over the next 3 years (-3.8% 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?

-34.9%

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 34.9% 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 (-59.7%).


Return on Equity

High ROE: RNET has a negative Return on Equity (-259.15%), 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 ($105.0M) exceed its short term liabilities ($60.6M).

Long Term Liabilities: RNET's short term assets ($105.0M) do not cover its long term liabilities ($145.2M).


Debt to Equity History and Analysis

Debt Level: RNET's debt to equity ratio (935.1%) is considered high.

Reducing Debt: RNET's debt to equity ratio has increased from 55.4% to 935.1% 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 sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RNET has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of 44.5% each year.


Next Steps

Dividend

What is RigNet 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 (56 yo)

4.25yrs

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 ($USD1.86M) is above average for companies of similar size in the US market ($USD589.30K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director4.25yrsUS$1.86m0.69%
$ 501.1k
Lee Ahlstrom
Senior VP & CFO2yrsUS$1.37m0.23%
$ 170.9k
Brad Eastman
Senior VP & General Counsel2.83yrsUS$1.01m0.20%
$ 147.4k
Errol Olivier
Senior VP & COO0.58yrno datano data
Benjamin Carter
Interim Principal Accounting Officer and Director of Accounting & Reporting2.5yrsno data0.096%
$ 69.8k
Brendan Sullivan
Chief Technology/Information Officer3.25yrsUS$620.95k0.17%
$ 127.4k
Cameron Wallace
Director of Communicationsno datano datano data
Jackson Markley
Vice President of Corporate Development2.17yrsno datano data
Shelly Pesterfield
VP of Global Human Resources1.58yrsno datano data
Edward Traupman
Senior VP and GM of Products & Services1yrUS$554.48k0.16%
$ 119.1k
Egbert Clarke
Senior Vice President of Global Operations1.58yrsno data0.10%
$ 75.0k
James Barnett
Senior Vice President of Government Services1.58yrsno data0.068%
$ 49.8k

2.0yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Steven Pickett
CEO, President & Director4.25yrsUS$1.86m0.69%
$ 501.1k
Kevin O'Hara
Independent Director9.67yrsUS$188.50k0.29%
$ 213.4k
Dave Vucina
Member of Advisory Boardno datano datano data
Kevin Mulloy
Independent Director8.42yrsUS$183.50k0.13%
$ 91.2k
Ditlef de Vibe
Independent Director9.25yrsUS$181.15k0.21%
$ 152.9k
Keith Olsen
Independent Director9.67yrsUS$187.85k0.19%
$ 135.8k
Brent Whittington
Independent Director9.67yrsUS$199.03k0.26%
$ 191.4k
Mattia Caprioli
Independent Director6.83yrsno datano data
James Browning
Independent Chairman of the Board8.25yrsUS$237.85k0.25%
$ 182.7k
Gail Smith
Independent Director2.58yrsUS$193.74k0.042%
$ 30.5k

8.4yrs

Average Tenure

61yo

Average Age

Experienced Board: RNET's board of directors are considered experienced (8.4 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 not been meaningfully diluted in the past year.


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$72.793m
  • Shares outstanding: 20.11m
  • 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 segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 06:23
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
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.