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RPD

Rapid7 NasdaqGM:RPD Stock Report

Last Price

US$67.76

Market Cap

US$4.0b

7D

5.9%

1Y

-39.8%

Updated

07 Aug, 2022

Data

Company Financials +
RPD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RPD Stock Overview

Rapid7, Inc. provides cyber security solutions.

Rapid7 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rapid7
Historical stock prices
Current Share PriceUS$67.76
52 Week HighUS$145.00
52 Week LowUS$60.42
Beta1.27
1 Month Change-8.37%
3 Month Change1.93%
1 Year Change-39.76%
3 Year Change18.75%
5 Year Change335.76%
Change since IPO168.04%

Recent News & Updates

Jul 12

Barclays cuts PT on Rapid7, reaffirms Overweight rating on ARR upside

Barclays on Tuesday cut its price target on Rapid7 (NASDAQ:RPD) in a Q2 preview note to $92 from $110, implying a potential upside of 26% to its last close. The brokerage maintained its Overweight rating on RPD, citing ARR upside, in-line with Wall Street's bullish rating (7 Strong Buy, 5 Buy, 3 Hold). However, SA Quant's rating on RPD is Hold, with the stock faring poorly in terms of valuation factor grade. RPD stock, which slid as much as 5.8% on Tuesday, has fallen 41% YTD.

Shareholder Returns

RPDUS SoftwareUS Market
7D5.9%4.8%1.0%
1Y-39.8%-17.7%-12.9%

Return vs Industry: RPD underperformed the US Software industry which returned -17.7% over the past year.

Return vs Market: RPD underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is RPD's price volatile compared to industry and market?
RPD volatility
RPD Average Weekly Movement7.2%
Software Industry Average Movement10.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: RPD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RPD's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20002,353Corey Thomashttps://www.rapid7.com

Rapid7, Inc. provides cyber security solutions. The company offers a cloud-native insight platform that enables customers to create and manage analytics-driven cyber security risk management programs. Its platform includes InsightIDR, an incident detection and response solution; InsightCloudSec, a solution that integrates posture management, workload protection, infrastructure entitlements management, infrastructure-as-code security, and Kubernetes protection; InsightVM, a vulnerability risk management solution that is designed to provide a way to collect vulnerability data, prioritize risk, and automate remediation; InsightAppSec, which provides application security testing that analyzes web applications for security vulnerabilities; and InsightConnect, a security orchestration and automation response solution that is used by security professionals.

Rapid7 Fundamentals Summary

How do Rapid7's earnings and revenue compare to its market cap?
RPD fundamental statistics
Market CapUS$3.98b
Earnings (TTM)-US$166.93m
Revenue (TTM)US$616.37m

6.5x

P/S Ratio

-23.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RPD income statement (TTM)
RevenueUS$616.37m
Cost of RevenueUS$198.92m
Gross ProfitUS$417.46m
Other ExpensesUS$584.39m
Earnings-US$166.93m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.84
Gross Margin67.73%
Net Profit Margin-27.08%
Debt/Equity Ratio-549.4%

How did RPD perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RPD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RPD?

Other financial metrics that can be useful for relative valuation.

RPD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.5x
Enterprise Value/EBITDA-43.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does RPD's PS Ratio compare to its peers?

RPD PS Ratio vs Peers
The above table shows the PS ratio for RPD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.1x
APPN Appian
9.4x17.5%US$3.9b
TENB Tenable Holdings
7.9x18.0%US$4.8b
VRNS Varonis Systems
7.6x18.8%US$3.3b
QLYS Qualys
11.6x14.7%US$5.0b
RPD Rapid7
6.5x20.5%US$4.0b

Price-To-Sales vs Peers: RPD is good value based on its Price-To-Sales Ratio (6.5x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does RPD's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: RPD is expensive based on its Price-To-Sales Ratio (6.5x) compared to the US Software industry average (5.2x)


Price to Sales Ratio vs Fair Ratio

What is RPD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RPD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.5x
Fair PS Ratio7.5x

Price-To-Sales vs Fair Ratio: RPD is good value based on its Price-To-Sales Ratio (6.5x) compared to the estimated Fair Price-To-Sales Ratio (7.5x).


Share Price vs Fair Value

What is the Fair Price of RPD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RPD ($67.76) is trading above our estimate of fair value ($62.09)

Significantly Below Fair Value: RPD is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Rapid7 forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RPD's revenue (20.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: RPD's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RPD is forecast to be unprofitable in 3 years.


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Past Performance

How has Rapid7 performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-29.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RPD is currently unprofitable.

Growing Profit Margin: RPD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RPD is unprofitable, and losses have increased over the past 5 years at a rate of 29.8% per year.

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

Earnings vs Industry: RPD is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.5%).


Return on Equity

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


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Financial Health

How is Rapid7's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

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

Long Term Liabilities: RPD 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: RPD has negative shareholder equity, which is a more serious situation than a high debt level.

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


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: Whilst unprofitable RPD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RPD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.7% per year.


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Dividend

What is Rapid7 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RPD's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RPD has not reported any payouts.


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Management

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

3.6yrs

Average management tenure


CEO

Corey Thomas (46 yo)

9.83yrs

Tenure

US$10,634,202

Compensation

Mr. Corey E. Thomas has been Deputy Chairman of Federal Reserve Bank of Boston since January 1, 2021. He serves as Director at LPL Financial Holdings Inc. since May 08, 2019. He has been the Chief Executiv...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD10.63M) is above average for companies of similar size in the US market ($USD6.58M).

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


Leadership Team

Experienced Management: RPD's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: RPD's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RPD 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 5.2%.


Top Shareholders

Company Information

Rapid7, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Rapid7, Inc.
  • Ticker: RPD
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$3.978b
  • Shares outstanding: 58.70m
  • Website: https://www.rapid7.com

Number of Employees


Location

  • Rapid7, Inc.
  • 120 Causeway Street
  • Suite 400
  • Boston
  • Massachusetts
  • 2114
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.