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RNG

RingCentral NYSE:RNG Stock Report

Last Price

US$64.40

Market Cap

US$6.1b

7D

-7.1%

1Y

-74.2%

Updated

21 May, 2022

Data

Company Financials +
RNG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RNG Stock Overview

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

RingCentral Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RingCentral
Historical stock prices
Current Share PriceUS$64.40
52 Week HighUS$315.00
52 Week LowUS$59.04
Beta0.92
1 Month Change-35.17%
3 Month Change-56.16%
1 Year Change-74.25%
3 Year Change-47.09%
5 Year Change89.41%
Change since IPO253.85%

Recent News & Updates

May 10

RingCentral: Caution Is Required

RingCentral has seen its stock price retreat more than -60% YTD. The company struggles to reach profitability as marketing and R&D spending outpaces revenue growth. Recent results recorded a miss on EPS and a beat on Revenue, with 2022 guidance raised.

Shareholder Returns

RNGUS SoftwareUS Market
7D-7.1%-2.7%-2.7%
1Y-74.2%-13.6%-12.9%

Return vs Industry: RNG underperformed the US Software industry which returned -13.6% over the past year.

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

Price Volatility

Is RNG's price volatile compared to industry and market?
RNG volatility
RNG Average Weekly Movement11.4%
Software Industry Average Movement11.4%
Market Average Movement7.9%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.0%

Stable Share Price: RNG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: RNG's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19993,919Vlad Shmunishttps://www.ringcentral.com

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company offers business cloud communications and contact center solutions based on its Message Video Phone? platform.

RingCentral Fundamentals Summary

How do RingCentral's earnings and revenue compare to its market cap?
RNG fundamental statistics
Market CapUS$6.11b
Earnings (TTM)-US$527.04m
Revenue (TTM)US$1.71b

3.6x

P/S Ratio

-11.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNG income statement (TTM)
RevenueUS$1.71b
Cost of RevenueUS$506.86m
Gross ProfitUS$1.20b
Other ExpensesUS$1.73b
Earnings-US$527.04m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-5.55
Gross Margin70.36%
Net Profit Margin-30.82%
Debt/Equity Ratio658.7%

How did RNG perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RNG ($64.4) is trading below our estimate of fair value ($378.4)

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


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 (125.3x) compared to the US Software industry average (3.8x).


Future Growth

How is RingCentral forecast to perform in the next 1 to 3 years based on estimates from 25 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


11.6%

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 (19.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: RNG's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNG's Return on Equity is forecast to be high in 3 years time (32.8%)


Past Performance

How has RingCentral 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


-67.8%

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 67.8% 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 (27.1%).


Return on Equity

High ROE: RNG has a negative Return on Equity (-212.32%), as it is currently unprofitable.


Financial Health

How is RingCentral'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: RNG's short term assets ($720.8M) exceed its short term liabilities ($575.7M).

Long Term Liabilities: RNG's short term assets ($720.8M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: RNG's net debt to equity ratio (537.1%) is considered high.

Reducing Debt: Insufficient data to determine if RNG's debt to equity ratio has reduced 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 a year 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 Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


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 RNG has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Vlad Shmunis (60 yo)

23.33yrs

Tenure

US$19,221,811

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 ($USD19.22M) is above average for companies of similar size in the US market ($USD8.23M).

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


Leadership Team

Experienced Management: RNG's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: RNG's board of directors are considered experienced (6.9 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 4.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: RingCentral, Inc.
  • Ticker: RNG
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$6.111b
  • Shares outstanding: 94.90m
  • Website: https://www.ringcentral.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
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.