NasdaqGM:RPD

Stock Analysis Report

Executive Summary

Rapid7, Inc. provides analytics solutions for security and information (IT) operations.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


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


Market Performance


7 Day Return

-5.1%

NasdaqGM:RPD

-2.6%

US Software

-0.7%

US Market


1 Year Return

60.8%

NasdaqGM:RPD

18.3%

US Software

-0.5%

US Market

RPD outperformed the Software industry which returned 18.5% over the past year.

RPD outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

RPDIndustryMarket
7 Day-5.1%-2.6%-0.7%
30 Day-14.8%-3.6%-3.0%
90 Day1.9%2.0%0.9%
1 Year60.8%60.8%20.0%18.3%1.7%-0.5%
3 Year196.1%196.1%115.5%107.0%39.5%30.4%
5 Yearn/a161.0%142.1%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

29.82x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Rapid7's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Rapid7's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Rapid7 is loss making, we can't compare its value to the US Software industry average.

Rapid7 is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rapid7, we can't assess if its growth is good value.


Price Based on Value of Assets

Rapid7 is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Rapid7 expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

43.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rapid7's revenue is expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).

Rapid7's earnings are expected to grow significantly at over 20% yearly.

Rapid7's revenue growth is expected to exceed the United States of America market average.

Rapid7's earnings growth is expected to exceed the United States of America market average.

Rapid7's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Rapid7 is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Rapid7 performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rapid7 does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Rapid7's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Rapid7's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Rapid7 has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Rapid7 has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Rapid7 improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Rapid7's financial position?


Financial Position Analysis

Rapid7 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rapid7's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rapid7's level of debt (205.4%) compared to net worth is high (greater than 40%).

Rapid7 had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x 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.

Rapid7 has sufficient cash runway for more than 3 years based on current free cash flow.

Rapid7 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 98.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Rapid7's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Rapid7's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Rapid7 has not reported any payouts.

Unable to verify if Rapid7's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Rapid7 has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Rapid7's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Rapid7's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Corey Thomas (43yo)

6.8yrs

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

Corey's remuneration is about average for companies of similar size in United States of America.

Corey's compensation has increased whilst company is loss making.


Management Age and Tenure

6.4yrs

Average Tenure

47yo

Average Age

The average tenure for the Rapid7 management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.0yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Rapid7 board of directors is less than 3 years, this suggests a new board.


Insider Trading

Rapid7 individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$525,10028 May 19
Timothy McAdam
EntityIndividual
Shares10,000
Max PriceUS$52.51
SellUS$1,544,52526 Feb 19
Goose Rocks Beach Partners, L.P.
EntityCompany
Shares33,567
Max PriceUS$46.01
SellUS$487,59226 Feb 19
David Yuan
EntityIndividual
Shares10,600
Max PriceUS$46.00
SellUS$1,386,08420 Feb 19
Technology Crossover Ventures
EntityCompany
Shares30,367
Max PriceUS$45.67
SellUS$810,97220 Feb 19
Drew Family Trust
EntityCompany
Shares17,780
Max PriceUS$45.61
SellUS$1,308,07220 Feb 19
Robert Trudeau
EntityIndividual
Shares28,665
Max PriceUS$46.39
SellUS$72,029,52913 Nov 18
Bain Capital, LP
EntityCompany
Shares2,182,713
Max PriceUS$33.00
SellUS$296,42813 Sep 18
Timothy McAdam
EntityIndividual
Shares7,773
Max PriceUS$38.14
SellUS$384,83413 Sep 18
David Yuan
EntityIndividual
Shares10,217
Max PriceUS$38.18
SellUS$82,05313 Sep 18
Technology Crossover Ventures
EntityCompany
Shares2,158
Max PriceUS$38.45
SellUS$360,72213 Sep 18
Technology Crossover Ventures
EntityCompany
Shares9,622
Max PriceUS$37.49
SellUS$403,22213 Sep 18
Christopher Marshall
EntityIndividual
Shares10,618
Max PriceUS$38.44
SellUS$651,32213 Sep 18
Drew Family Trust
EntityCompany
Shares17,186
Max PriceUS$37.90
SellUS$3,062,93513 Sep 18
Goose Rocks Beach Partners, L.P.
EntityCompany
Shares81,161
Max PriceUS$37.74
SellUS$914,42913 Sep 18
Hamilton Investments Limited Partnership
EntityCompany
Shares23,477
Max PriceUS$38.95
SellUS$1,052,94013 Sep 18
Robert Trudeau
EntityIndividual
Shares27,705
Max PriceUS$38.01
SellUS$5,77213 Sep 18
Marshall Partners
EntityCompany
Shares152
Max PriceUS$38.44

Ownership Breakdown


Management Team

  • Jeff Kalowski (63yo)

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: US$623.55k
  • Carol Meyers (57yo)

    Chief Marketing Officer

    • Tenure: 7.7yrs
  • Christina Luconi (51yo)

    Chief People Officer

    • Tenure: 8.6yrs
    • Compensation: US$1.60m
  • Tas Giakouminakis

    Co-Founder & CTO

    • Tenure: 0.0yrs
  • Corey Thomas (43yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • Compensation: US$5.04m
  • Peter Kaes (38yo)

    Senior VP

    • Tenure: 3.1yrs
  • Neeraj Mahajan

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Andrew Burton (47yo)

    President & COO

    • Tenure: 0.6yrs
    • Compensation: US$3.75m
  • Lee Weiner (45yo)

    Chief Product Officer

    • Tenure: 6.4yrs
    • Compensation: US$2.94m
  • Caitlin Doherty

    Public Relations Manager

    • Tenure: 0.0yrs

Board Members

  • Ben Holzman (44yo)

    Independent Director

    • Tenure: 11.0yrs
    • Compensation: US$210.58k
  • Judy Bruner (60yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$215.77k
  • Ben Nye (53yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$222.58k
  • Mike Berry (56yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$225.97k
  • Corey Thomas (43yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • Compensation: US$5.04m
  • Tom Schodorf (61yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$243.27k
  • Marc Brown (54yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$221.43k
  • Christina Kosmowski (43yo)

    Director

    • Tenure: 0.1yrs

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$2.612b
  • Shares outstanding: 48.84m
  • Website: https://www.rapid7.com

Number of Employees


Location

  • Rapid7, Inc.
  • 100 Summer Street
  • 13th Floor
  • Boston
  • Massachusetts
  • 2110
  • 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

Biography

Rapid7, Inc. provides analytics solutions for security and information (IT) operations. Its vulnerability management solutions include InsightVM and Nexpose, which enable customers to assess and remediate  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:54
End of Day Share Price2019/08/16 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.