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Ribbon Communications

Market Cap

US$959.4m

Last Updated

2021/05/05 22:47 UTC

Data Sources

Company Financials +

Executive Summary

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, Japan, the Asia Pacific, and internationally. More Details


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

How has Ribbon Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBBN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RBBN's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-20.0%

RBBN

-0.9%

US Communications

-1.6%

US Market


1 Year Return

108.0%

RBBN

25.9%

US Communications

52.8%

US Market

Return vs Industry: RBBN exceeded the US Communications industry which returned 25.2% over the past year.

Return vs Market: RBBN exceeded the US Market which returned 52.4% over the past year.


Shareholder returns

RBBNIndustryMarket
7 Day-20.0%-0.9%-1.6%
30 Day-21.2%-3.4%1.3%
90 Day-25.8%5.2%3.5%
1 Year108.0%108.0%29.2%25.9%55.4%52.8%
3 Year11.1%11.1%16.4%8.1%63.5%53.2%
5 Year-23.9%-23.9%96.7%74.4%125.8%100.7%

Long-Term Price Volatility Vs. Market

How volatile is Ribbon Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBBN ($6.51) is trading below our estimate of fair value ($15.09)

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


Price To Earnings Ratio

PE vs Industry: RBBN is good value based on its PE Ratio (12.3x) compared to the US Communications industry average (37.6x).

PE vs Market: RBBN is good value based on its PE Ratio (12.3x) compared to the US market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: RBBN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RBBN is good value based on its PB Ratio (1.5x) compared to the US Communications industry average (2.7x).


Future Growth

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

-74.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBBN's earnings are forecast to decline over the next 3 years (-74.1% per year).

Earnings vs Market: RBBN's earnings are forecast to decline over the next 3 years (-74.1% per year).

High Growth Earnings: RBBN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RBBN's revenue (4.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: RBBN's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RBBN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ribbon Communications performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBBN has a large one-off gain of $64.9M impacting its March 31 2021 financial results.

Growing Profit Margin: RBBN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RBBN has become profitable over the past 5 years, growing earnings by -14.2% per year.

Accelerating Growth: RBBN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RBBN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-4%).


Return on Equity

High ROE: RBBN's Return on Equity (12%) is considered low.


Financial Health

How is Ribbon Communications's financial position?


Financial Position Analysis

Short Term Liabilities: RBBN's short term assets ($396.9M) exceed its short term liabilities ($296.5M).

Long Term Liabilities: RBBN's short term assets ($396.9M) do not cover its long term liabilities ($513.5M).


Debt to Equity History and Analysis

Debt Level: RBBN's debt to equity ratio (60.4%) is considered high.

Reducing Debt: Insufficient data to determine if RBBN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RBBN's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: RBBN's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RBBN'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 RBBN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RBBN'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 RBBN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Bruce McClelland (53 yo)

1.17yrs

Tenure

US$5,017,727

Compensation

Mr. Bruce W. McClelland is the President, Chief Executive Officer and Director of Ribbon Communications Inc. since March 1, 2020. He served as the Chief Operating Officer at CommScope Holding Company, Inc....


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD5.02M) is above average for companies of similar size in the US market ($USD2.33M).

Compensation vs Earnings: Insufficient data to compare Bruce's compensation with company performance.


Leadership Team

Experienced Management: RBBN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: RBBN's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RBBN insiders have sold more shares than they have bought 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 2.1%.


Top Shareholders

Company Information

Ribbon Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ribbon Communications Inc.
  • Ticker: RBBN
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$959.362m
  • Shares outstanding: 147.37m
  • Website: https://www.ribboncommunications.com

Number of Employees


Location

  • Ribbon Communications Inc.
  • 6500 Chase Oaks Boulevard
  • Suite 100
  • Plano
  • Texas
  • 75023
  • United States

Listings


Biography

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, Japan, the Asia Pacific, and internationally. It operates through two segments, Cloud an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 22:47
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.