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

-8.4%

RNG

-3.2%

US Software

0.4%

US Market


1 Year Return

106.8%

RNG

20.3%

US Software

6.9%

US Market

Return vs Industry: RNG exceeded the US Software industry which returned 20.3% over the past year.

Return vs Market: RNG exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

RNGIndustryMarket
7 Day-8.4%-3.2%0.4%
30 Day21.0%-3.7%-1.1%
90 Day34.1%-6.1%-0.5%
1 Year106.8%106.8%22.0%20.3%9.3%6.9%
3 Year599.9%599.9%112.1%103.8%45.8%36.4%
5 Year1273.6%1273.6%163.1%144.1%62.9%45.1%

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?

37.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RNG ($161.67) is trading above our estimate of fair value ($87.85)

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 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 (37.7x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is RingCentral forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

-15.2%

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 (21.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: RNG's revenue (21.5% per year) is forecast to grow faster 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 (21.9%)


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

Earnings Trend: RNG is unprofitable, but has reduced losses over the past 5 years at a rate of 19.6% 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 (19.1%).


Return on Equity

High ROE: RNG has a negative Return on Equity (-8.66%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RNG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RNG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is RingCentral's financial position?


Financial Position Analysis

Short Term Liabilities: RNG's short term assets ($735.1M) exceeds its short term liabilities ($245.6M)

Long Term Liabilities: RNG's short term assets (735.1M) exceeds its long term liabilities (411.0M)


Debt to Equity History and Analysis

Debt Level: RNG's debt to equity ratio (105.9%) is considered high

Reducing Debt: RNG's debt to equity ratio has increased from 28% to 105.9% over the past 5 years.


Balance Sheet

Inventory Level: RNG has a low level of unsold assets or inventory.

Debt Coverage by Assets: RNG's debt is covered by short term assets (assets are 1.952040x 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.

Stable Cash Runway: Whilst unprofitable RNG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RNG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of RingCentral's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Vlad Shmunis (58yo)

20.8yrs

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

Compensation vs. Market: Vlad's total compensation ($USD7.85M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: RNG's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

58yo

Average Age

Experienced Board: RNG's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: RNG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$424,05705 Sep 19
Mitesh Dhruv
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,993
Max PriceUS$142.54
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

Ownership Breakdown


Management Team

  • Praful Shah (63yo)

    Chief Strategy Officer

    • Tenure: 9.8yrs
    • Compensation: US$2.02m
  • Vlad Shmunis (58yo)

    Founder

    • Tenure: 20.8yrs
    • Compensation: US$7.85m
  • Kira Makagon (56yo)

    Executive VP & Chief Innovation Officer

    • Tenure: 7.2yrs
    • Compensation: US$2.09m
  • John Marlow (50yo)

    Chief Administrative Officer

    • Tenure: 2.7yrs
    • Compensation: US$2.29m
  • Dave Sipes (52yo)

    Chief Operating Officer

    • Tenure: 3.2yrs
    • Compensation: US$3.95m
  • Mitesh Dhruv (41yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$3.93m
  • Vlad Vendrow

    Co-Founder & CTO

    • Tenure: 28.8yrs
  • Trevor Schulze

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Ryan Goodman

    Director of Investor Relations

    • Tenure: 0yrs
  • Vaibhav Agarwal (42yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Ken Goldman (70yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$289.52k
  • Rob Theis (58yo)

    Lead Director

    • Tenure: 4.8yrs
    • Compensation: US$324.52k
  • Godfrey Sullivan (65yo)

    Director

    • Tenure: 0.5yrs
  • Allan Thygesen (56yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$282.52k
  • Vlad Shmunis (58yo)

    Founder

    • Tenure: 20.8yrs
    • Compensation: US$7.85m
  • R. Williams (66yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$299.52k
  • Michelle McKenna-Doyle (53yo)

    Director

    • Tenure: 4.6yrs
    • 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$13.414b
  • 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 Analysis2019/10/21 00:33
End of Day Share Price2019/10/18 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.