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RingCentral

NYSE:RNG
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RNG
NYSE
$10B
Market Cap
  1. Home
  2. US
  3. Software
Company description

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The last earnings update was 40 days ago. More info.


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RNG Share Price and Events
7 Day Returns
0%
NYSE:RNG
0.3%
US Software
0.1%
US Market
1 Year Returns
52.9%
NYSE:RNG
21%
US Software
1.2%
US Market
RNG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RingCentral (RNG) 0% -2.6% 5.6% 52.9% 482% 695.8%
US Software 0.3% 0.3% 5.2% 21% 122.1% 149.1%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • RNG outperformed the Software industry which returned 21% over the past year.
  • RNG outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
RNG
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RingCentral to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RingCentral.

NYSE:RNG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RNG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.137 (1 + (1- 21%) (4.22%))
1.117
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.117 * 5.96%)
9.39%

Discounted Cash Flow Calculation for NYSE:RNG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RingCentral is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:RNG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.39%)
2019 51.95 Analyst x6 47.49
2020 71.82 Analyst x10 60.03
2021 111.03 Analyst x3 84.83
2022 180.30 Analyst x3 125.93
2023 266.23 Analyst x3 169.99
2024 340.19 Est @ 27.78% 198.58
2025 409.13 Est @ 20.26% 218.32
2026 470.52 Est @ 15% 229.54
2027 523.79 Est @ 11.32% 233.60
2028 569.59 Est @ 8.74% 232.22
Present value of next 10 years cash flows $1,600.53
NYSE:RNG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $569.59 × (1 + 2.73%) ÷ (9.39% – 2.73%)
$8,789.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,789.92 ÷ (1 + 9.39%)10
$3,583.70
NYSE:RNG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,600.53 + $3,583.70
$5,184.23
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,184.23 / 81.94
$63.27
NYSE:RNG Discount to Share Price
Calculation Result
Value per share (USD) From above. $63.27
Current discount Discount to share price of $117.86
= -1 x ($117.86 - $63.27) / $63.27
-86.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RingCentral is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RingCentral's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RingCentral's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RNG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.37
NYSE:RNG Share Price ** NYSE (2019-06-18) in USD $117.86
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 50.31x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RingCentral.

NYSE:RNG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RNG Share Price ÷ EPS (both in USD)

= 117.86 ÷ -0.37

-316.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does RingCentral's expected growth come at a high price?
Raw Data
NYSE:RNG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -316.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-6.8%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for RingCentral, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RingCentral's assets?
Raw Data
NYSE:RNG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.05
NYSE:RNG Share Price * NYSE (2019-06-18) in USD $117.86
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.71x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:RNG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RNG Share Price ÷ Book Value per Share (both in USD)

= 117.86 ÷ 4.05

29.12x

* Primary Listing of RingCentral.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RingCentral is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess RingCentral's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. RingCentral has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is RingCentral expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RingCentral expected to grow at an attractive rate?
  • 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.
Growth vs Market Checks
  • 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.
  • RingCentral's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RNG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RNG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -6.8%
NYSE:RNG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 18.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RNG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RNG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,761 2
2022-12-31 1,509 2
2021-12-31 1,290 4
2020-12-31 1,063 129 -48 20
2019-12-31 864 99 -48 20
NYSE:RNG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 725 80 -30
2018-12-31 674 72 -26
2018-09-30 624 59 -43
2018-06-30 581 53 -33
2018-03-31 542 45 -5
2017-12-31 504 41 -4
2017-09-30 467 38 -11
2017-06-30 433 32 -19
2017-03-31 405 34 -25
2016-12-31 380 30 -16
2016-09-30 359 25 -29
2016-06-30 339 19 -28

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RingCentral is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • RingCentral's revenue is expected to grow by 18.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RNG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from RingCentral Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RNG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 -0.52 -0.35 -0.85 8.00
2019-12-31 -0.55 -0.32 -0.68 9.00
NYSE:RNG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.37
2018-12-31 -0.33
2018-09-30 -0.54
2018-06-30 -0.42
2018-03-31 -0.06
2017-12-31 -0.06
2017-09-30 -0.15
2017-06-30 -0.26
2017-03-31 -0.34
2016-12-31 -0.22
2016-09-30 -0.40
2016-06-30 -0.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RingCentral is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess RingCentral's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RingCentral has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has RingCentral performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RingCentral's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
RingCentral's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RingCentral Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RNG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 724.77 -29.85 463.05 108.18
2018-12-31 673.62 -26.20 429.39 101.04
2018-09-30 624.09 -42.58 416.77 94.17
2018-06-30 580.55 -32.80 383.92 86.91
2018-03-31 541.73 -4.68 335.84 80.71
2017-12-31 503.62 -4.20 312.54 75.15
2017-09-30 466.94 -11.03 294.16 72.20
2017-06-30 433.50 -19.28 277.43 69.61
2017-03-31 405.42 -24.93 262.17 67.68
2016-12-31 380.44 -16.23 235.58 65.51
2016-09-30 358.66 -29.30 230.17 62.09
2016-06-30 338.60 -27.66 213.02 59.08
2016-03-31 317.45 -28.10 200.32 54.69
2015-12-31 296.23 -32.10 186.97 52.92
2015-09-30 274.68 -35.28 174.92 49.72
2015-06-30 254.85 -40.93 164.54 48.17
2015-03-31 236.94 -46.05 153.31 46.75
2014-12-31 219.89 -48.34 143.74 44.58
2014-09-30 203.34 -51.59 130.83 41.62
2014-06-30 188.33 -48.45 124.68 37.84
2014-03-31 173.24 -48.74 112.75 35.57
2013-12-31 160.51 -46.10 103.52 33.40
2013-09-30 148.29 -39.82 96.34 31.13
2013-06-30 135.94 -40.53 86.92 29.52
2013-03-31 125.24 -35.92 82.32 26.93
2012-12-31 114.53 -35.39 79.00 24.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess RingCentral's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RingCentral has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is RingCentral's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RingCentral's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of RingCentral's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RingCentral Company Filings, last reported 2 months ago.

NYSE:RNG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 331.22 407.16 549.03
2018-12-31 317.61 366.55 566.33
2018-09-30 299.45 365.41 577.28
2018-06-30 291.02 360.56 567.28
2018-03-31 275.87 356.52 554.96
2017-12-31 228.35 0.00 181.19
2017-09-30 161.94 0.00 172.31
2017-06-30 153.72 0.00 167.02
2017-03-31 134.48 0.00 149.69
2016-12-31 130.04 15.02 160.36
2016-09-30 122.10 15.96 152.39
2016-06-30 117.92 16.99 147.79
2016-03-31 111.13 18.02 139.07
2015-12-31 110.13 19.04 137.59
2015-09-30 102.89 20.06 132.31
2015-06-30 100.15 21.05 132.70
2015-03-31 92.42 22.14 135.71
2014-12-31 96.51 25.62 141.66
2014-09-30 99.94 28.47 149.35
2014-06-30 105.83 31.22 151.42
2014-03-31 111.76 32.45 166.83
2013-12-31 63.52 34.82 116.38
2013-09-30 -25.31 38.10 25.45
2013-06-30 -20.73 20.73 19.37
2013-03-31 -8.62 19.05 22.32
2012-12-31 0.07 21.08 37.86
  • RingCentral's level of debt (112.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29% vs 112.2% today).
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 -50.6% per year.
X
Financial health checks
We assess RingCentral's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RingCentral has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from RingCentral dividends. Estimated to be 0% next year.
If you bought $2,000 of RingCentral shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RNG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RNG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of RingCentral's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess RingCentral's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RingCentral afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RingCentral has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vlad Shmunis
COMPENSATION $7,852,884
AGE 57
TENURE AS CEO 20.4 years
CEO Bio

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. until June 13, 2013. He has more than 20 years of systems architecture and telecommunications experience to RingCentral. Prior to RingCentral, from 1992 to 1998, Mr. Shmunis served as President and Chief Executive Officer of Ring Zero Systems, Inc., a desktop communications software provider founded by Mr. Shmunis and acquired by Motorola, Inc. From 1982 to 1992, Mr. Shmunis held various software development and management roles with a number of Silicon Valley companies, including Convergent Technologies, Inc. and Ampex Corporation. Mr. Shmunis holds a B.S. in Computer Science and an M.S. in Computer Science from San Francisco State University.

CEO Compensation
  • Vlad's compensation has increased whilst company is loss making.
  • Vlad's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the RingCentral management team in years:

2.6
Average Tenure
50
Average Age
  • The tenure for the RingCentral management team is about average.
Management Team

Vlad Shmunis

TITLE
Co-Founder
COMPENSATION
$8M
AGE
57
TENURE
20.4 yrs

Mitesh Dhruv

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
40
TENURE
2.1 yrs

Dave Sipes

TITLE
Chief Operating Officer
COMPENSATION
$4M
AGE
51
TENURE
2.8 yrs

John Marlow

TITLE
Chief Administrative Officer
COMPENSATION
$2M
AGE
49
TENURE
2.3 yrs

Praful Shah

TITLE
Chief Strategy Officer
COMPENSATION
$2M
AGE
62
TENURE
9.4 yrs

Vlad Vendrow

TITLE
Co-Founder & CTO
TENURE
28.4 yrs

Vaibhav Agarwal

TITLE
VP, Corporate Controller & Chief Accounting Officer
AGE
41
TENURE
0.2 yrs

Trevor Schulze

TITLE
Senior VP & Chief Information Officer
TENURE
0.4 yrs

Ryan Goodman

TITLE
Director of Investor Relations

Ryan Azus

TITLE
Executive Vice President of Global Sales & Services
Board of Directors Tenure

Average tenure and age of the RingCentral board of directors in years:

4.3
Average Tenure
57
Average Age
  • The tenure for the RingCentral board of directors is about average.
Board of Directors

R. Williams

TITLE
Director
COMPENSATION
$300K
AGE
65
TENURE
7.3 yrs

Vlad Shmunis

TITLE
Co-Founder
COMPENSATION
$8M
AGE
57
TENURE
20.4 yrs

Rob Theis

TITLE
Lead Director
COMPENSATION
$325K
AGE
57
TENURE
4.4 yrs

Ken Goldman

TITLE
Director
COMPENSATION
$290K
AGE
69
TENURE
2 yrs

Michelle McKenna-Doyle

TITLE
Director
COMPENSATION
$303K
AGE
52
TENURE
4.3 yrs

Allan Thygesen

TITLE
Director
COMPENSATION
$283K
AGE
55
TENURE
3.7 yrs

Godfrey Sullivan

TITLE
Director
AGE
64
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Mar 19 Sell Robert Theis Individual 28. Feb 19 28. Feb 19 -2,100 $105.50 $-221,550
15. Feb 19 Sell Michelle McKenna-Doyle Individual 15. Feb 19 15. Feb 19 -2,000 $103.44 $-206,884
10. Jan 19 Sell David Sipes Individual 10. Jan 19 10. Jan 19 -2,516 $87.88 $-220,352
12. Dec 18 Sell Michelle McKenna-Doyle Individual 12. Dec 18 12. Dec 18 -2,500 $88.00 $-220,000
09. Nov 18 Sell Michelle McKenna-Doyle Individual 08. Nov 18 08. Nov 18 -2,500 $84.53 $-211,325
29. Aug 18 Sell Praful Shah Individual 28. Aug 18 29. Aug 18 -5,596 $95.05 $-525,419
X
Management checks
We assess RingCentral's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RingCentral has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

RingCentral (NYSE:RNG) Shareholders Have Enjoyed A Whopping 880% Share Price Gain

Check out our latest analysis for RingCentral RingCentral isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … For the last half decade, RingCentral can boast revenue growth at a rate of 27% per year. … NYSE:RNG Income Statement, May 24th 2019 RingCentral is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth.

Simply Wall St -

Are RingCentral, Inc.'s (NYSE:RNG) Interest Costs Too High?

Mid-caps stocks, like RingCentral, Inc. … However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. … RNG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.

Simply Wall St -

Here's What We Think About RingCentral, Inc.'s (NYSE:RNG) CEO Pay

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Vlad Shmunis's Compensation Compare With Similar Sized Companies. … is worth US$8.3b, and total annual CEO compensation is US$5.6m.

Simply Wall St -

Did RingCentral, Inc. (NYSE:RNG) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in RingCentral, Inc. … The Last 12 Months Of Insider Transactions At RingCentral. … Chief Strategy Officer Praful Shah made the biggest insider sale in the last 12 months.

Simply Wall St -

Is RingCentral Inc's (NYSE:RNG) CEO Paid Enough Relative To Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Vlad Shmunis's Compensation Compare With Similar Sized Companies. … According to our data, RingCentral Inc has a market capitalization of US$5.7b, and pays its CEO total annual compensation worth US$5.6m.

Simply Wall St -

Should You Be Worried When RingCentral Inc’s (NYSE:RNG) Insiders Sell?

some insider selling over the past three months, with insiders divesting from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal. … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

When Will RingCentral Inc (NYSE:RNG) Breakeven?

With the latest financial year loss of -US$26.14m and a trailing-twelve month of -US$26.62m, the US$6.06b market-cap amplifies its loss by moving further away from its breakeven target. … I’ve put together a brief outline of industry analyst expectations for RNG, its year of breakeven and its implied growth rate … Expectation from Software analysts is RNG is on the verge of breakeven.

Simply Wall St -

What Does RingCentral Inc's (NYSE:RNG) Share Price Indicate?

In addition to this, it seems like RingCentral’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … NYSE:RNG Future Profit Jun 6th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … RNG’s future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

RingCentral Inc (NYSE:RNG): Has Recent Earnings Growth Beaten Long-Term Trend?

When RingCentral Inc (NYSE:RNG) announced its most recent earnings (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Check out our latest analysis for RingCentral How RNG fared against its long-term earnings performance and its industry I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Eyeballing growth from a sector-level, the US software industry has been growing its average earnings by double-digit 11.76% in the previous twelve months, and 14.18% over the past half a decade.

Simply Wall St -

What Should Investors Know About The Future Of RingCentral Inc's (NYSE:RNG) Business?

RingCentral Inc's (NYSE:RNG) latest earnings announcement in December 2017 confirmed company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've laid out key numbers on how market analysts predict RingCentral's earnings growth outlook over the next couple of years and whether the future looks brighter. … View our latest analysis for RingCentral Analysts' expectations for the coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, generating -US$25.35M in 2019. … NYSE:RNG Future Profit Feb 20th 18 Although it’s useful to be aware of the growth year by year relative to today’s figure, it may be more beneficial evaluating the rate at which the earnings are growing on average every year.

Simply Wall St -

Company Info

Description

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, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine. Its products also comprise RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office. The company serves a range of industries, including financial services, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents and channel partners. The company was incorporated in 1999 and is headquartered in Belmont, California.

Details
Name: RingCentral, Inc.
RNG
Exchange: NYSE
Founded: 1999
$9,657,315,453
81,938,872
Website: http://www.ringcentral.com
Address: RingCentral, Inc.
20 Davis Drive,
Belmont,
California, 94002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RNG Class A Common Stock New York Stock Exchange US USD 27. Sep 2013
DB 3RCA Class A Common Stock Deutsche Boerse AG DE EUR 27. Sep 2013
LSE 0V50 Class A Common Stock London Stock Exchange GB USD 27. Sep 2013
Number of employees
Current staff
Staff numbers
1,871
RingCentral employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 00:29
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.