NasdaqGM:RPD

Stock Analysis Report

Executive Summary

Rapid7, Inc. provides cyber security solutions.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Rapid7's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.9%

RPD

-4.3%

US Software

-2.6%

US Market


1 Year Return

-23.6%

RPD

7.1%

US Software

-13.3%

US Market

Return vs Industry: RPD underperformed the US Software industry which returned 7.1% over the past year.

Return vs Market: RPD underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

RPDIndustryMarket
7 Day-8.9%-4.3%-2.6%
30 Day-12.7%-10.0%-15.2%
90 Day-34.7%-9.1%-22.2%
1 Year-23.6%-23.6%8.2%7.1%-11.5%-13.3%
3 Year139.6%139.6%101.5%93.0%13.2%5.7%
5 Yearn/a165.9%147.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Rapid7's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rapid7 undervalued compared to its fair value and its price relative to the market?

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPD ($39.36) is trading below our estimate of fair value ($60.05)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RPD is overvalued based on its PB Ratio (23.6x) compared to the US Software industry average (4x).


Next Steps

Future Growth

How is Rapid7 forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.7%

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 (15.3% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: RPD's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RPD's Return on Equity is forecast to be high in 3 years time (37.7%)


Next Steps

Past Performance

How has Rapid7 performed over the past 5 years?

16.2%

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, but has reduced losses over the past 5 years at a rate of 16.2% 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 (18.4%).


Return on Equity

High ROE: RPD has a negative Return on Equity (-64.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rapid7's financial position?


Financial Position Analysis

Short Term Liabilities: RPD's short term assets ($364.6M) exceed its short term liabilities ($286.7M).

Long Term Liabilities: RPD's short term assets ($364.6M) exceed its long term liabilities ($295.1M).


Debt to Equity History and Analysis

Debt Level: RPD's debt to equity ratio (222.7%) is considered high.

Reducing Debt: RPD had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: RPD has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RPD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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 payouts.

High Dividend: Unable to evaluate RPD'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 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.


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 RPD'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?

3.8yrs

Average management tenure


CEO

Corey Thomas (43yo)

7.5s

Tenure

US$5,036,352

Compensation

Mr. Corey E. Thomas serves as Director at LPL Financial Holdings Inc. since May 08, 2019. He has been the Chief Executive Officer at Rapid7, Inc., since October 2012 and its Chairman since February 24, 201 ...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD5.04M) is about average for companies of similar size in the US market ($USD4.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Corey Thomas
Chairman & CEO7.5yrsUS$5.04m0.66% $13.1m
Andrew Burton
President & COO1.25yrsUS$3.75m0.038% $746.0k
Jeffrey Kalowski
Chief Financial Officer3.25yrsUS$623.55k0.091% $1.8m
Christina Luconi
Chief People Officer9.25yrsUS$1.60m0.22% $4.3m
Lee Weiner
Chief Innovation Officer7.08yrsUS$2.94m0.063% $1.3m
Tas Giakouminakis
Co-Founder & CTOno datano datano data
Neeraj Mahajan
Vice President of Investor Relationsno datano datano data
Peter Kaes
Senior VP3.75yrsno data0.20% $3.9m
Caitlin Doherty
Public Relations Managerno datano datano data
Conan Reidy
Senior Vice President of Corporate Development and Strategic Alliances2.25yrsno datano data

3.8yrs

Average Tenure

46yo

Average Age

Experienced Management: RPD's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Corey Thomas
Chairman & CEO7.5yrsUS$5.04m0.66% $13.1m
Ben Holzman
Independent Director11.67yrsUS$210.58k0.028% $553.6k
Judy Bruner
Independent Director3.5yrsUS$215.77k0.050% $989.5k
J. Benjamin Nye
Lead Independent Director1.17yrsUS$222.58k0.036% $711.2k
Michael Berry
Independent Director7.42yrsUS$225.97k0.036% $711.2k
Thomas Schodorf
Independent Director3.75yrsUS$243.27k0.045% $883.5k
Marc Brown
Independent Director3.75yrsUS$221.43k0.043% $848.1k
Christina Kosmowski
Director0.75yrno datano data

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Board: RPD's board of directors are considered experienced (3.6 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 4.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Rapid7, Inc.
  • Ticker: RPD
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.978b
  • Shares outstanding: 50.21m
  • Website: https://www.rapid7.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPDNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJul 2015
R7DDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2015
0KTXLSE (London Stock Exchange)YesCommon SharesGBUSDJul 2015
R7DBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJul 2015

Biography

Rapid7, Inc. provides cyber security solutions. The company offers a cloud-native insight platform that enable customers to create and manage analytics-driven cyber security risk management programs. Its platform include vulnerability management solutions comprising InsightVM that is designed to provide a way to collect vulnerability data, prioritize risk, and automate remediation; InsightIDR, an incident detection and response solution; InsightAppSec provides application security testing that analyzes web applications for security vulnerabilities; and InsightConnect, a SOAR solution that is used by security professionals. The company’s other products include Nexpose, an on-premise version of company's vulnerability risk management solution; AppSpider, an on-premise version of company's application security testing solution; Metasploit, a penetration testing software solution; and InsightOps that enables organizations to store and search data in real time. It offers its products through a combination of perpetual and term software licenses, cloud-based subscriptions, and managed services. The company serves customers in a range of industries, including technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services industries through sales teams, and indirect channel partner relationships, as well as directly in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It has a strategic partnership with Snyk to deliver end-to-end application security to organizations developing cloud native applications. Rapid7, Inc. was incorporated in 2000 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:32
End of Day Share Price2020/04/06 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.