| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$69.30 |
| 52 Week High | US$315.00 |
| 52 Week Low | US$59.04 |
| Beta | 0.92 |
| 1 Month Change | -35.00% |
| 3 Month Change | -58.79% |
| 1 Year Change | -71.12% |
| 3 Year Change | -43.91% |
| 5 Year Change | 105.03% |
| Change since IPO | 280.77% |
Recent News & Updates
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
| RNG | US Software | US Market | |
|---|---|---|---|
| 7D | -9.3% | -3.8% | -2.5% |
| 1Y | -71.1% | -10.3% | -10.4% |
Return vs Industry: RNG underperformed the US Software industry which returned -10.3% over the past year.
Return vs Market: RNG underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| RNG volatility | |
|---|---|
| RNG Average Weekly Movement | 11.0% |
| Software Industry Average Movement | 11.4% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1999 | 3,919 | Vlad Shmunis | https://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
| RNG fundamental statistics | |
|---|---|
| Market Cap | US$6.58b |
| Earnings (TTM) | -US$527.04m |
| Revenue (TTM) | US$1.71b |
3.8x
P/S Ratio-12.5x
P/E RatioIs RNG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RNG income statement (TTM) | |
|---|---|
| Revenue | US$1.71b |
| Cost of Revenue | US$506.86m |
| Gross Profit | US$1.20b |
| Other Expenses | US$1.73b |
| Earnings | -US$527.04m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -5.55 |
| Gross Margin | 70.36% |
| Net Profit Margin | -30.82% |
| Debt/Equity Ratio | 658.7% |
How did RNG perform over the long term?
See historical performance and comparisonValuation
Is RingCentral undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation 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 ($69.3) is trading below our estimate of fair value ($382.19)
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 (134.8x) compared to the US Software industry average (3.6x).
Future Growth
How is RingCentral forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Future Growth Score
2/6Future 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 (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
0/6Past 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 (29.6%).
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
2/6Financial 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
0/6Dividend 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.
Next Steps
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$6.576b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.