Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide.
Rackspace Technology Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$14.64|
|52 Week High||US$13.07|
|52 Week Low||US$26.43|
|1 Month Change||4.65%|
|3 Month Change||-20.99%|
|1 Year Change||-12.44%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-10.68%|
Recent News & Updates
Returns On Capital At Rackspace Technology (NASDAQ:RXT) Have Stalled
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
|RXT||US IT||US Market|
Return vs Industry: RXT underperformed the US IT industry which returned 21.9% over the past year.
Return vs Market: RXT underperformed the US Market which returned 30.3% over the past year.
Stable Share Price: RXT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: RXT's weekly volatility (6%) has been stable over the past year.
About the Company
Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company’s Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.
Rackspace Technology Fundamentals Summary
|RXT fundamental statistics|
Is RXT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RXT income statement (TTM)|
|Cost of Revenue||US$1.87b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 15, 2021
|Earnings per share (EPS)||-1.27|
|Net Profit Margin||-9.26%|
How did RXT perform over the long term?See historical performance and comparison
Is Rackspace Technology undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RXT ($14.64) is trading below our estimate of fair value ($34.83)
Significantly Below Fair Value: RXT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RXT is unprofitable, so we can't compare its PE Ratio to the US IT industry average.
PE vs Market: RXT 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 RXT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RXT is good value based on its PB Ratio (2.2x) compared to the US IT industry average (5.3x).
How is Rackspace Technology forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RXT is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: RXT is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: RXT is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: RXT's revenue (9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: RXT's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RXT's Return on Equity is forecast to be low in 3 years time (14.5%).
How has Rackspace Technology performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RXT is currently unprofitable.
Growing Profit Margin: RXT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RXT is unprofitable, and losses have increased over the past 5 years at a rate of 8.9% per year.
Accelerating Growth: Unable to compare RXT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RXT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.6%).
Return on Equity
High ROE: RXT has a negative Return on Equity (-19.21%), as it is currently unprofitable.
How is Rackspace Technology's financial position?
Financial Position Analysis
Short Term Liabilities: RXT's short term assets ($885.2M) exceed its short term liabilities ($789.3M).
Long Term Liabilities: RXT's short term assets ($885.2M) do not cover its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: RXT's debt to equity ratio (258.8%) is considered high.
Reducing Debt: Insufficient data to determine if RXT's debt to equity ratio has reduced over the past 5 years.
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 RXT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: RXT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.4% per year.
What is Rackspace Technology current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RXT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RXT'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 RXT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RXT'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 RXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Jones (52 yo)
Mr. Kevin M. Jones serves as Member of Advisory Board at Medecision, Inc. He serves as a Director of Rackspace Technology, Inc. since April 2019 and its Chief Executive Officer since April 24, 2019. Mr. Jo...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD6.86M) is above average for companies of similar size in the US market ($USD5.18M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Experienced Management: RXT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Experienced Board: RXT's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.
Rackspace Technology, Inc.'s employee growth, exchange listings and data sources
- Name: Rackspace Technology, Inc.
- Ticker: RXT
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: US$3.062b
- Shares outstanding: 209.13m
- Website: https://www.rackspace.com
Number of Employees
- Rackspace Technology, Inc.
- 1 Fanatical Place
- City of Windcrest
- San Antonio
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/24 22:22|
|End of Day Share Price||2021/10/22 00:00|
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.