NYSE:RNG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

0.5%

NYSE:RNG

3.2%

US Software

2.9%

US Market


1 Year Return

54.4%

NYSE:RNG

19.1%

US Software

0.2%

US Market

RNG outperformed the Software industry which returned 18.6% over the past year.

RNG outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

RNGIndustryMarket
7 Day0.5%3.2%2.9%
30 Day16.1%-2.8%-2.3%
90 Day15.0%4.6%3.1%
1 Year54.4%54.4%20.8%19.1%2.4%0.2%
3 Year523.6%523.6%117.8%109.2%41.7%32.4%
5 Year967.4%967.4%166.1%146.9%55.1%37.9%

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

32.65x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

RingCentral 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 RingCentral, we can't assess if its growth is good value.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is RingCentral expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

-15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RingCentral's revenue is expected to grow significantly at over 20% yearly.

RingCentral is not considered high growth as it is expected to be loss making for the next 1-3 years.

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

Unable to compare RingCentral's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare RingCentral's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has RingCentral performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare RingCentral'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 RingCentral 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 RingCentral 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 RingCentral 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 RingCentral's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

RingCentral's level of debt (105.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (28% vs 105.9% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2x 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.

Whilst loss making RingCentral has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making RingCentral has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -53.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

No need to calculate the sustainability of RingCentral'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 RingCentral's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Vlad Shmunis (58yo)

20.6yrs

Tenure

US$7,852,884

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

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

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


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

The tenure for the RingCentral management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

The tenure for the RingCentral board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$221,55001 Mar 19
Robert Theis
EntityIndividual
Role
Lead Director
Lead Director
Shares2,100
Max PriceUS$105.50
SellUS$206,88415 Feb 19
Michelle McKenna-Doyle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$103.44
SellUS$220,35210 Jan 19
David Sipes
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares2,516
Max PriceUS$87.88
SellUS$220,00012 Dec 18
Michelle McKenna-Doyle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$88.00
SellUS$211,32509 Nov 18
Michelle McKenna-Doyle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$84.53
SellUS$525,41929 Aug 18
Praful Shah
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares5,596
Max PriceUS$95.05

Ownership Breakdown


Management Team

  • Praful Shah (63yo)

    Chief Strategy Officer

    • Tenure: 9.6yrs
    • Compensation: US$2.02m
  • Vlad Shmunis (58yo)

    Co-Founder

    • Tenure: 20.6yrs
    • Compensation: US$7.85m
  • John Marlow (50yo)

    Chief Administrative Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.29m
  • Dave Sipes (52yo)

    Chief Operating Officer

    • Tenure: 3.0yrs
    • Compensation: US$3.95m
  • Mitesh Dhruv (41yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$3.93m
  • Vlad Vendrow

    Co-Founder & CTO

    • Tenure: 28.6yrs
  • Riadh Dridi

    Chief Marketing Officer & Senior VP

    • Tenure: 3.2yrs
  • Trevor Schulze

    Senior VP & Chief Information Officer

    • Tenure: 0.6yrs
  • Ryan Goodman

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Vaibhav Agarwal (42yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Ken Goldman (70yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$289.52k
  • Rob Theis (58yo)

    Lead Director

    • Tenure: 4.6yrs
    • Compensation: US$324.52k
  • Godfrey Sullivan (65yo)

    Director

    • Tenure: 0.3yrs
  • Allan Thygesen (56yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$282.52k
  • Vlad Shmunis (58yo)

    Co-Founder

    • Tenure: 20.6yrs
    • Compensation: US$7.85m
  • R. Williams (66yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$299.52k
  • Michelle McKenna-Doyle (53yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$302.52k

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$11.611b
  • Shares outstanding: 82.97m
  • Website: https://www.ringcentral.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNGNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 2013
3RCADB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2013
0V50LSE (London Stock Exchange)YesClass A Common StockGBUSDSep 2013

Biography

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company’s products include RingCentral Office, pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:32
End of Day Share Price2019/08/21 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.