NasdaqGM:RMNI

Stock Analysis Report

Executive Summary

Rimini Street, Inc. provides enterprise software products and services for various industries.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

RMNI

-4.4%

US Software

0.07%

US Market


1 Year Return

-39.0%

RMNI

19.3%

US Software

8.9%

US Market

Return vs Industry: RMNI underperformed the US Software industry which returned 19.3% over the past year.

Return vs Market: RMNI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

RMNIIndustryMarket
7 Day5.4%-4.4%0.07%
30 Day-11.5%-4.4%-0.3%
90 Day-17.9%-9.3%-1.6%
1 Year-39.0%-39.0%21.1%19.3%11.3%8.9%
3 Yearn/a108.2%99.8%46.3%36.8%
5 Yearn/a157.9%139.3%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RMNI ($4.09) is trading below our estimate of fair value ($12.86)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RMNI has negative assets, so we can't compare its PB Ratio to the US Software industry average.


Next Steps

Future Growth

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

54.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RMNI's revenue (14.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: RMNI's revenue (14.6% 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 RMNI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rimini Street performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RMNI is unprofitable, but has reduced losses over the past 5 years at a rate of 7.5% per year.

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

Earnings vs Industry: RMNI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: RMNI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: RMNI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RMNI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Rimini Street's financial position?


Financial Position Analysis

Short Term Liabilities: RMNI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RMNI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RMNI is debt free.

Reducing Debt: RMNI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: RMNI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 RMNI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RMNI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 109.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if RMNI's dividends per share have been stable in the past.

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


Next Steps

Management

What is the CEO of Rimini Street's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Seth Ravin (52yo)

14.1yrs

Tenure

US$867,509

Compensation

Mr. Seth A. Ravin founded Rimini Street, Inc. and has been its Chairman and Chief Executive Officer since September 2005. Mr. Ravin served as the President of Rimini Street, Inc. since September 2005 until ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Seth's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: RMNI's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: RMNI's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: RMNI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,571,37225 Sep 19
Thomas Shay
EntityIndividual
Shares700,269
Max PriceUS$5.10

Ownership Breakdown


Management Team

  • Tom Sabol (60yo)

    Senior VP & CFO

    • Tenure: 2.9yrs
  • Sebastian Grady (54yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$544.58k
  • Dave Rowe (53yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 7.5yrs
    • Compensation: US$1.09m
  • Seth Ravin (52yo)

    Founder

    • Tenure: 14.1yrs
    • Compensation: US$867.51k
  • Michelle McGlocklin

    Vice President of Global Communications

    • Tenure: 4.3yrs
  • James Butler

    Chief Ethics & Compliance Officer

    • Tenure: 0.08yrs
  • Dan Winslow (60yo)

    Senior VP

    • Tenure: 6.1yrs
    • Compensation: US$666.20k
  • Dean Pohl

    Director of Investor Relations

    • Tenure: 0yrs
  • Julie Murphy

    Senior VP & Chief People Officer

    • Tenure: 0.8yrs
  • Tony Kirk

    Vice President Of Sales

    • Tenure: 0.7yrs

Board Members

  • Robin Murray (53yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$144.99k
  • Peggy Taylor (68yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$177.49k
  • Tom Ashburn (75yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$157.49k
  • Antonio Carlos Augusto Ribeiro Bonchristiano (52yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$239.99k
  • Jack Acosta (71yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$159.99k
  • Steve Capelli (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$162.49k
  • Seth Ravin (52yo)

    Founder

    • Tenure: 14.1yrs
    • Compensation: US$867.51k
  • Andrew Fleiss (41yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$262.49k

Company Information

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


Key Information

  • Name: Rimini Street, Inc.
  • Ticker: RMNI
  • Exchange: NasdaqGM
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$272.120m
  • Shares outstanding: 66.53m
  • Website: https://www.riministreet.com

Number of Employees


Location

  • Rimini Street, Inc.
  • 3993 Howard Hughes Parkway
  • Suite 500
  • Las Vegas
  • Nevada
  • 89169
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMNINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2017

Biography

Rimini Street, Inc. provides enterprise software products and services for various industries. The company offers third-party support for Oracle and SAP software products. It sells its solutions primarily  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:34
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.