NYSE:RUBI

Stock Analysis Report

Executive Summary

The Rubicon Project, Inc., together with its subsidiaries, provides technology solutions to automate the purchase and sale of digital advertising inventory for buyers and sellers in the United States and internationally.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

19.8%

RUBI

5.3%

US Online Retail

10.5%

US Market


1 Year Return

-1.3%

RUBI

3.0%

US Online Retail

-11.5%

US Market

Return vs Industry: RUBI underperformed the US Online Retail industry which returned 3% over the past year.

Return vs Market: RUBI exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

RUBIIndustryMarket
7 Day19.8%5.3%10.5%
30 Day-43.8%-3.5%-15.4%
90 Day-28.4%-5.3%-21.4%
1 Year-1.3%-1.3%3.0%3.0%-9.6%-11.5%
3 Year1.9%1.9%74.5%74.3%12.6%5.4%
5 Year-65.3%-65.3%180.9%168.5%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RUBI ($6) is trading below our estimate of fair value ($10.85)

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


Price To Earnings Ratio

PE vs Industry: RUBI is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: RUBI 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 RUBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RUBI is overvalued based on its PB Ratio (2.9x) compared to the US Online Retail industry average (2.2x).


Next Steps

Future Growth

How is Rubicon Project forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

76.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RUBI's revenue (14.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RUBI's revenue (14.4% 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 RUBI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rubicon Project performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUBI is currently unprofitable.

Growing Profit Margin: RUBI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RUBI is unprofitable, and losses have increased over the past 5 years at a rate of -28.7% per year.

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

Earnings vs Industry: RUBI is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (15%).


Return on Equity

High ROE: RUBI has a negative Return on Equity (-22.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rubicon Project's financial position?


Financial Position Analysis

Short Term Liabilities: RUBI's short term assets ($313.1M) exceed its short term liabilities ($267.5M).

Long Term Liabilities: RUBI's short term assets ($313.1M) exceed its long term liabilities ($15.7M).


Debt to Equity History and Analysis

Debt Level: RUBI is debt free.

Reducing Debt: RUBI had no debt 5 years ago.


Balance Sheet

Inventory Level: RUBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: RUBI's debt is covered by short term assets (assets are 8.8115741459271E+16x 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: Whilst unprofitable RUBI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RUBI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -30.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RUBI'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 RUBI'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?

3.0yrs

Average management tenure


CEO

Michael Barrett (57yo)

3s

Tenure

US$3,813,065

Compensation

Mr. Michael G. Barrett has been Chief Executive Officer and President of The Rubicon Project, Inc. since March 2017. Mr. Barrett has nearly 20 years of experience in e-commerce, advertising, publishing and ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.81M) is above average for companies of similar size in the US market ($USD2.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Addante
Founder & Chairman13.17yrsUS$197.99k2.03% $6.8m
Michael Barrett
President3yrsUS$3.81m1.4% $4.7m
David Day
Chief Financial Officer3.83yrsUS$2.12m0.016% $52.7k
Thomas Kershaw
Chief Technology Officer3.42yrsUS$2.29m0.35% $1.2m
Joseph Prusz
Chief Revenue Officerno dataUS$1.54m0.26% $878.5k
Adam Soroca
Head of Global Buyer Team2.67yrsUS$1.75m0.24% $796.3k
Blima Tuller
Chief Accounting Officer2.58yrsno data0.10% $332.5k
Nick Kormeluk
VP of Investor Relations & Head of Global Real Estateno datano datano data
Jonathan Feldman
Co-General Counsel & Secretaryno datano data0.013% $44.6k
Eve Filip
Co-General Counsel & Chief Privacy Counsel2.17yrsno data0.060% $201.4k

3.0yrs

Average Tenure

42yo

Average Age

Experienced Management: RUBI's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Addante
Founder & Chairman13.17yrsUS$197.99k2.03% $6.8m
Michael Barrett
President3yrsUS$3.81m1.4% $4.7m
Robert Spillane
Independent Director5.92yrsUS$167.50k0.085% $284.4k
Lewis Coleman
Independent Director4.25yrsUS$170.00k0.066% $219.0k
Robert Frankenberg
Lead Directorno dataUS$192.25k0.085% $284.4k
Lisa Troe
Independent Director6.08yrsUS$178.50k0.081% $271.3k
Sarah Harden
Independent Director0.67yrUS$497.50kno data

5.1yrs

Average Tenure

57yo

Average Age

Experienced Board: RUBI's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

the Rubicon Project, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: the Rubicon Project, Inc.
  • Ticker: RUBI
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$333.534m
  • Shares outstanding: 55.04m
  • Website: https://www.rubiconproject.com

Number of Employees


Location

  • the Rubicon Project, Inc.
  • 12181 Bluff Creek Drive
  • 4th Floor
  • Los Angeles
  • California
  • 90094
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUBINYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2014
15RDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2014
15RBRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 2014

Biography

The Rubicon Project, Inc., together with its subsidiaries, provides technology solutions to automate the purchase and sale of digital advertising inventory for buyers and sellers in the United States and internationally. The company offers applications and services for digital advertising inventory sellers, including websites, mobile applications, and other digital media properties, to sell their advertising inventory; applications and services for buyers, such as advertisers, agencies, agency trading desks, and demand side platforms, to buy advertising inventory; and a marketplace over which such transactions are executed. It also provides demand manager services for sellers to monetize their advertising inventory through configuration tools and analytics to make it easier to deploy, configure, and optimize prebid-based header bidding solutions. The company was founded in 2007 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 02:22
End of Day Share Price2020/03/27 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.