NasdaqGS:RBBN

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Ribbon Communications

Executive Summary

Ribbon Communications Inc. provides networked software solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


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

16.0%

RBBN

1.8%

US Communications

1.8%

US Market


1 Year Return

120.2%

RBBN

-4.5%

US Communications

20.4%

US Market

Return vs Industry: RBBN exceeded the US Communications industry which returned -6.7% over the past year.

Return vs Market: RBBN exceeded the US Market which returned 19% over the past year.


Shareholder returns

RBBNIndustryMarket
7 Day16.0%1.8%1.8%
30 Day57.2%9.1%6.0%
90 Day52.3%0.7%6.8%
1 Year120.2%120.2%-1.9%-4.5%23.2%20.4%
3 Year-19.3%-19.3%15.1%7.1%47.4%37.6%
5 Year-9.5%-9.5%56.1%38.4%91.9%70.8%

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 ($6.32) is trading below our estimate of fair value ($46.18)

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


Price To Earnings Ratio

PE vs Industry: RBBN is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.

PE vs Market: RBBN 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 RBBN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RBBN's PB Ratio (1.7x) is in line with the US Communications industry average.


Next Steps

Future Growth

How is Ribbon Communications forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

164.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBBN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: RBBN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RBBN's is expected to become profitable in the next 3 years.

Revenue vs Market: RBBN's revenue (6.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RBBN's revenue (6.8% 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


Next Steps

Past Performance

How has Ribbon Communications performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBBN is currently unprofitable.

Growing Profit Margin: RBBN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RBBN is unprofitable, and losses have increased over the past 5 years at a rate of 42.6% per year.

Accelerating Growth: Unable to compare RBBN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RBBN is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-4.9%).


Return on Equity

High ROE: RBBN has a negative Return on Equity (-33.4%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ribbon Communications's financial position?


Financial Position Analysis

Short Term Liabilities: RBBN's short term assets ($402.8M) exceed its short term liabilities ($319.8M).

Long Term Liabilities: RBBN's short term assets ($402.8M) do not cover its long term liabilities ($530.9M).


Debt to Equity History and Analysis

Debt Level: RBBN's debt to equity ratio (72%) is considered high.

Reducing Debt: Insufficient data to determine if RBBN'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: Whilst unprofitable RBBN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RBBN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25.5% per year.


Next Steps

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?

0.7yrs

Average management tenure


CEO

Bruce McClelland (53 yo)

0.67

Tenure

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....


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Scarfo
Executive VP and GM of Cloud & Edge Business Unit2.83yrsUS$1.38m0.057%
$ 522.6k
Steven Bruny
Executive Vice President of Sales - Americas Region0.67yrUS$1.40m0.087%
$ 800.9k
Bruce McClelland
President0.67yrno data0.086%
$ 793.6k
Miguel Lopez
Executive VP & CFO0.42yrno data0.015%
$ 139.1k
Yaal Shain
Executive Vice President of Operations0.67yrno datano data
Sara Leggat
Head of Investor Relationsno datano datano data
Patrick Macken
Executive VP0.42yrno datano data
Petrena Ferguson
Senior Vice President of Human Resourcesno datano datano data
Bita Milanian
Senior Vice President of Global Marketing3yrsno datano data
Fernando Valdivielso
Executive Vice President of Sales0.67yrno datano data
Irit Touitou
Executive Vice President of Packet Optical Networking R&D0.83yrno datano data
Salvatore Bucci
Executive VP & GM of Packet Optical Networks Business Unit0.17yrno datano data

0.7yrs

Average Tenure

56yo

Average Age

Experienced Management: RBBN's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bruce McClelland
President0.67yrno data0.086%
$ 793.6k
Bruns Grayson
Lead Independent Director0.42yrUS$205.00k0.14%
$ 1.3m
Krish Prabhu
Independent Director0.67yrno data0.011%
$ 104.8k
Beatriz Infante
Independent Director10.83yrsUS$205.00k0.12%
$ 1.1m
R. Ewing
Independent Director0.67yrno data0.011%
$ 104.8k
Shaul Shani
Chairman0.42yrno datano data
Mariano Sebastian De Beer
Independent Director0.42yrno datano data
Richard Smith
Director3.08yrsUS$160.00kno data
Tanya Tamone
Independent Director0.42yrno datano data

0.7yrs

Average Tenure

66yo

Average Age

Experienced Board: RBBN's board of directors are not considered experienced ( 0.7 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 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 31.8%.


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$917.920m
  • Shares outstanding: 145.24m
  • Website: https://www.ribboncommunications.com

Number of Employees


Location

  • Ribbon Communications Inc.
  • 4 Technology Park Drive
  • Westford
  • Massachusetts
  • 1886
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBBNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2000
NU42DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2000

Biography

Ribbon Communications Inc. provides networked software solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. The company offers service provider s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:19
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.