NYSE:RNG

Stock Analysis Report

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Market Cap

US$24.3b

Last Updated

2021/08/01 22:04 UTC

Data Sources

Company Financials +

Executive Summary

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. More Details


Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-3.4%

RNG

-0.8%

US Software

-0.4%

US Market


1 Year Return

-7.9%

RNG

38.6%

US Software

35.9%

US Market

Return vs Industry: RNG underperformed the US Software industry which returned 38.6% over the past year.

Return vs Market: RNG underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

RNGIndustryMarket
7 Day-3.4%-0.8%-0.4%
30 Day-7.7%2.0%-0.3%
90 Day-15.1%12.9%3.1%
1 Year-7.9%-7.9%39.3%38.6%38.0%35.9%
3 Year236.0%236.0%145.7%139.1%62.9%52.7%
5 Year1,012.7%1,012.7%350.9%327.7%121.3%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

113.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RNG ($267.27) is trading above our estimate of fair value ($240.15)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RNG is overvalued based on its PB Ratio (114x) compared to the US Software industry average (6.7x).


Future Growth

How is RingCentral forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RNG's revenue (20.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: RNG's revenue (20.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has RingCentral performed over the past 5 years?

-35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNG is currently unprofitable.

Growing Profit Margin: RNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNG is unprofitable, and losses have increased over the past 5 years at a rate of 35.1% per year.

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

Earnings vs Industry: RNG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (34.7%).


Return on Equity

High ROE: RNG has a negative Return on Equity (-10.54%), as it is currently unprofitable.


Financial Health

How is RingCentral's financial position?


Financial Position Analysis

Short Term Liabilities: RNG's short term assets ($743.7M) exceed its short term liabilities ($444.4M).

Long Term Liabilities: RNG's short term assets ($743.7M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: RNG's debt to equity ratio (651.4%) is considered high.

Reducing Debt: RNG's debt to equity ratio has increased from 15.9% to 651.4% over the past 5 years.


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

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


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RNG'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 RNG'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?

4.2yrs

Average management tenure


CEO

Vlad Shmunis (60 yo)

22.5yrs

Tenure

US$19,059,431

Compensation

Mr. Vladimir G. Shmunis, also known as Vlad, co-founded Ringcentral, Inc., in 1999 and has been its Chairman and Chief Executive Officer since 1999. Mr. Shmunis served as the President of Ringcentral, Inc....


CEO Compensation Analysis

Compensation vs Market: Vlad's total compensation ($USD19.06M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: RNG's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: RNG's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RNG insiders have only sold shares 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 3.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: RingCentral, Inc.
  • Ticker: RNG
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$24.288b
  • Shares outstanding: 90.87m
  • Website: https://www.ringcentral.com

Number of Employees


Location

  • RingCentral, Inc.
  • 20 Davis Drive
  • Belmont
  • California
  • 94002
  • United States

Listings


Biography

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. Its products include RingCentral Office that provides communicat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:04
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.