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Ribbon Communications

Nasdaq:RBBN
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RBBN
Nasdaq
$545M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Ribbon Communications Inc. provides networked solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. The last earnings update was 21 days ago. More info.


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RBBN Share Price and Events
7 Day Returns
-3.4%
NasdaqGS:RBBN
-1.1%
US Communications
-1.1%
US Market
1 Year Returns
-3.2%
NasdaqGS:RBBN
16.4%
US Communications
5.8%
US Market
RBBN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ribbon Communications (RBBN) -3.4% -8.6% 6.3% -3.2% -28.7% -69.9%
US Communications -1.1% 2.5% 28.8% 16.4% 77.2% 84.8%
US Market -1.1% -0.2% 19.7% 5.8% 37.9% 41.7%
1 Year Return vs Industry and Market
  • RBBN underperformed the Communications industry which returned 16.4% over the past year.
  • RBBN underperformed the Market in United States of America which returned 5.8% over the past year.
Price Volatility
RBBN
Industry
5yr Volatility vs Market

RBBN Value

 Is Ribbon Communications 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 Ribbon Communications 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 Ribbon Communications.

NasdaqGS:RBBN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
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 NasdaqGS:RBBN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.084 (1 + (1- 21%) (14.52%))
1.139
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.139 * 5.96%)
9.52%

Discounted Cash Flow Calculation for NasdaqGS:RBBN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ribbon Communications 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.

NasdaqGS:RBBN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.52%)
2019 55.50 Analyst x1 50.68
2020 75.90 Analyst x1 63.28
2021 92.98 Est @ 22.51% 70.78
2022 108.40 Est @ 16.58% 75.34
2023 121.86 Est @ 12.42% 77.33
2024 133.46 Est @ 9.51% 77.33
2025 143.44 Est @ 7.48% 75.89
2026 152.12 Est @ 6.05% 73.49
2027 159.81 Est @ 5.06% 70.49
2028 166.78 Est @ 4.36% 67.17
Present value of next 10 years cash flows $701.76
NasdaqGS:RBBN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $166.78 × (1 + 2.73%) ÷ (9.52% – 2.73%)
$2,522.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,522.81 ÷ (1 + 9.52%)10
$1,016.00
NasdaqGS:RBBN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $701.76 + $1,016.00
$1,717.77
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,717.77 / 107.27
$16.01
NasdaqGS:RBBN Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.01
Current discount Discount to share price of $5.08
= -1 x ($5.08 - $16.01) / $16.01
68.3%

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

Current Discount
Amount off the current price Ribbon Communications is available for.
Intrinsic value
>50%
Share price is $5.08 vs Future cash flow value of $16.01
Current Discount Checks
For Ribbon Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ribbon Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ribbon Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Ribbon Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ribbon Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RBBN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.74
NasdaqGS:RBBN Share Price ** NasdaqGS (2019-03-25) in USD $5.08
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 30.4x
United States of America Market PE Ratio Median Figure of 3,061 Publicly-Listed Companies 17.17x

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

** Primary Listing of Ribbon Communications.

NasdaqGS:RBBN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RBBN Share Price ÷ EPS (both in USD)

= 5.08 ÷ -0.74

-6.87x

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

  • Ribbon Communications is loss making, we can't compare its value to the US Communications industry average.
  • Ribbon Communications 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 Ribbon Communications's expected growth come at a high price?
Raw Data
NasdaqGS:RBBN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
134.1%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,104 Publicly-Listed Companies 1.45x

*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 Ribbon Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ribbon Communications's assets?
Raw Data
NasdaqGS:RBBN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $5.53
NasdaqGS:RBBN Share Price * NasdaqGS (2019-03-25) in USD $5.08
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,166 Publicly-Listed Companies 1.85x
NasdaqGS:RBBN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RBBN Share Price ÷ Book Value per Share (both in USD)

= 5.08 ÷ 5.53

0.92x

* Primary Listing of Ribbon Communications.

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

  • Ribbon Communications is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Ribbon Communications'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 Communications 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 Communications industry average (and greater than 0)? (1 check)
  5. Ribbon Communications has a total score of 3/6, 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.

RBBN Future Performance

 How is Ribbon Communications expected to perform in the next 1 to 3 years based on estimates from 4 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
134.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ribbon Communications expected to grow at an attractive rate?
  • Ribbon Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ribbon Communications's earnings growth is expected to exceed the United States of America market average.
  • Ribbon Communications's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RBBN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RBBN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 134.1%
NasdaqGS:RBBN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.9%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
NasdaqGS:RBBN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RBBN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 603 1
2020-12-31 637 83 31 3
2019-12-31 624 63 13 4
NasdaqGS:RBBN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 578 -10 -77
2018-09-30 557 -25 -91
2018-06-30 479 -17 -77
2018-03-31 398 8 -70
2017-12-31 330 8 -35
2017-09-30 251 18 -22
2017-06-30 242 13 -29
2017-03-31 247 19 -20
2016-12-31 253 19 -14
2016-09-30 261 28 -7
2016-06-30 264 43 -5
2016-03-31 258 41 -17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ribbon Communications's earnings are expected to grow significantly at over 20% yearly.
  • Ribbon Communications's revenue is expected to grow by 2.9% 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
NasdaqGS:RBBN 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 4 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:RBBN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.28 0.33 0.23 2.00
2019-12-31 0.11 0.15 0.07 2.00
NasdaqGS:RBBN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.74
2018-09-30 -0.92
2018-06-30 -0.91
2018-03-31 -0.97
2017-12-31 -0.60
2017-09-30 -0.45
2017-06-30 -0.60
2017-03-31 -0.40
2016-12-31 -0.28
2016-09-30 -0.13
2016-06-30 -0.10
2016-03-31 -0.35

*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.
  • Unable to establish if Ribbon Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ribbon Communications'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.
Ribbon Communications has a total score of 3/6, 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.

RBBN Past Performance

  How has Ribbon Communications 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 Ribbon Communications's growth in the last year to its industry (Communications).
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.
  • Ribbon Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Ribbon Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ribbon Communications's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Ribbon Communications'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 Ribbon Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RBBN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 577.91 -76.81 186.31 145.46
2018-09-30 557.22 -90.70 189.93 149.47
2018-06-30 479.38 -77.09 171.78 135.86
2018-03-31 397.75 -69.51 152.88 120.32
2017-12-31 329.94 -35.25 131.05 101.48
2017-09-30 251.30 -22.17 103.38 80.91
2017-06-30 241.68 -29.35 102.20 78.34
2017-03-31 246.81 -19.92 103.22 75.73
2016-12-31 252.59 -13.93 104.49 72.84
2016-09-30 261.35 -6.60 105.08 73.67
2016-06-30 264.20 -4.76 105.56 73.38
2016-03-31 258.04 -17.19 108.66 75.89
2015-12-31 249.03 -31.90 112.69 77.91
2015-09-25 249.51 -38.79 115.84 76.05
2015-06-26 254.86 -42.11 119.51 78.81
2015-03-27 275.73 -32.26 122.30 79.76
2014-12-31 296.33 -16.86 124.08 79.40
2014-09-26 295.68 -14.39 123.05 78.06
2014-06-27 290.56 -12.95 119.27 73.93
2014-03-28 284.19 -12.32 117.42 70.43
2013-12-31 276.73 -22.12 118.47 68.96
2013-09-27 275.72 -38.78 117.20 67.73
2013-06-28 264.67 -50.62 115.28 66.78
2013-03-29 253.08 -57.48 112.88 66.46
2012-12-31 254.13 -50.17 110.62 67.34
2012-09-28 253.27 -30.05 106.31 68.48
2012-06-29 262.57 -12.52 105.54 69.10
2012-03-30 256.74 -6.73 100.51 67.19

*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 Ribbon Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Ribbon Communications has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Ribbon Communications 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 Ribbon Communications'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 Communications 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.
Ribbon Communications 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.

RBBN Health

 How is Ribbon Communications'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 Ribbon Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ribbon Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ribbon Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ribbon Communications'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 3.5x 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 Ribbon Communications Company Filings, last reported 2 months ago.

NasdaqGS:RBBN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 590.30 79.10 50.98
2018-09-30 590.36 81.50 43.27
2018-06-30 567.25 42.92 55.34
2018-03-31 585.04 42.50 82.31
2017-12-31 615.42 42.50 74.30
2017-09-30 210.58 0.00 104.55
2017-06-30 202.99 0.00 87.40
2017-03-31 212.02 0.00 91.61
2016-12-31 219.12 0.00 93.76
2016-09-30 220.66 0.00 82.40
2016-06-30 220.05 0.00 88.77
2016-03-31 221.61 0.00 98.36
2015-12-31 223.03 0.00 108.64
2015-09-25 215.47 0.00 109.86
2015-06-26 212.47 0.00 98.67
2015-03-27 221.23 0.00 83.80
2014-12-31 240.35 0.00 105.60
2014-09-26 241.17 2.38 110.48
2014-06-27 240.50 2.38 117.41
2014-03-28 246.19 2.38 159.22
2013-12-31 312.25 2.53 211.31
2013-09-27 330.68 2.38 200.56
2013-06-28 366.25 2.38 215.02
2013-03-29 366.98 2.38 225.22
2012-12-31 376.05 2.55 249.91
2012-09-28 390.66 10.50 279.22
2012-06-29 401.87 0.00 340.85
2012-03-30 411.47 0.00 320.47
  • Ribbon Communications's level of debt (13.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.8% vs 13.4% 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.

  • Ribbon Communications has sufficient cash runway for 2.9 years based on current free cash flow.
  • Ribbon Communications has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 97.5% each year.
X
Financial health checks
We assess Ribbon Communications'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. Ribbon Communications 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.

RBBN Dividends

 What is Ribbon Communications'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 Ribbon Communications dividends.
If you bought $2,000 of Ribbon Communications 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 Ribbon Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ribbon Communications'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
NasdaqGS:RBBN 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 4 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
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.

NasdaqGS:RBBN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

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

  • Unable to perform a dividend volatility check as Ribbon Communications has not reported any payouts.
  • Unable to verify if Ribbon Communications's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ribbon Communications's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ribbon Communications has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ribbon Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Ribbon Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ribbon Communications 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.

RBBN Management

 What is the CEO of Ribbon Communications'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
Fritz Hobbs
COMPENSATION $425,081
AGE 71
TENURE AS CEO 1.3 years
CEO Bio

Mr. Franklin Warren Hobbs, IV, also known as Fritz, has been a Senior Advisor to One Equity Partners LLC since 2004. Mr. Hobbs served as Chief Executive of Houlihan Lokey, Inc. from 2002 to January 2003. Mr. Hobbs has served as the President and Chief Executive Officer of Ribbon Communications Inc. f/k/a Sonus Networks, Inc. since December 2017 and on their board of directors since November 2017. He served in roles of increasing responsibility at Dillon Read & Co. Inc. from 1972 to 1992, as Chief Executive Officer from 1992 to 1997 and also served as its President. He has been Non-Executive Chairman and Non-Executive Director of Ally Financial Inc. since May 27, 2009. He served as the Chairman of the Supervisory Board at BAWAG P.S.K. since March 12, 2013 until March 8, 2017 and Chairman of the Supervisory Board at Bawag Group AG (Formerly known as BAWAG Holding GmbH) from August 1, 2013 to March 8, 2017. He was the Member of the Supervisory Board of Bawag Group AG since April 4, 2013. He served as the Chairman of UBS Investment Bank, following a series of mergers between Dillon Read and SBC Warburg and later with Union Bank of Switzerland. He serves on the Board of Trustees and is Treasurer of The Frick Collection. He serves as Director of Lord, Abbett & Co. and the U.S. Fund of UNICEF. He has been Independent Director of Molson Coors Brewing Company since February 2005. He has been Director of Coors Brewing Company since 2001. He serves as Director of Last Mile Connections, Inc. He serves as Member of Advisory Board at Freeman & Co. He serves as Trustee at Lord Abbett Securities Trust - Lord Abbett Micro Cap Growth Fund, Lord Abbett Series Fund, Inc. - Calibrated Dividend Growth Portfolio, Lord Abbett Series Fund, Inc. - Growth and Income Portfolio, Lord Abbett Securities Trust - Lord Abbett Value Opportunities Fund, Lord Abbett Research Fund, Inc. - Lord Abbett Calibrated Dividend Growth Fund, Lord Abbett Series Fund, Inc. - Growth Opportunities Portfolio, Lord Abbett Investment Trust - Lord Abbett High Yield, Lord Abbett Securities Trust - Lord Abbett Fundamental Equity Fund, Lord Abbett Securities Trust - Lord Abbett International Opportunities Fund, Lord Abbett Research Fund, Inc. - Lord Abbett Small Cap Value Fund, Lord Abbett Global Fund, Inc. - Lord Abbett Multi-Asset Global Opportunity Fund, Lord Abbett Series Fund, Inc. - International Opportunities Portfolio, Lord Abbett Securities Trust - Lord Abbett Micro Cap Value Fund, Lord Abbett Research Fund, Inc. - Lord Abbett Growth Opportunities Fund and Lord Abbett Developing Growth Fund, Inc. He serves as Director of Lord Abbett Series Fund, Inc. - Fundamental Equity Portfolio, Lord Abbett Investment Trust - Lord Abbett Convertible Fund and Lord Abbett Affiliated Fund, Inc. He serves as Director of Open Range Communications Inc. He has been Director of Lord Abbett Mid Cap Stock Fund, Inc. and Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund, Inc. since 2000. He has been Trustee of Lord Abbett Bond-Debenture Fund, Inc. since 2000. He serves as Non-Executive Director of Basin Holdings US LLC. He served as Director - cbc - sub of Molson Coors Brewing Company from 2001 to February 2005. Mr. Hobbs served as a Director of Molson Coors’ predecessor company, Adolph Coors Company since 2001. He served as Director of Cybertrust, Inc. He served as Director of Lord Abbett & Co LLC until April 23, 2018. He served as Director of TruSecure Corporation. He served as Trustee of Lord Abbett Stock Appreciation Fund, Lord Abbett Research Fund, Inc. - Lord Abbett Classic Stock Fund, Lord Abbett Securities Trust - Lord Abbett Large-Cap Value Fund and Lord Abbett Blend Trust - Lord Abbett Small Cap Blend Fund. He is a Financial Expert and has knowledge in Investment Banking and Audit. He served on the Board of Overseers of Harvard University and was President of the Board of Trustees of Milton Academy. He serves as Trustee at Milton Academy. In 2014, he was named an Outstanding Director of the Year by the Financial Times for his role at Ally Financial Inc. Mr. Hobbs earned his bachelor’s degree from Harvard College and master’s in business administration from Harvard University.

CEO Compensation
  • Insufficient data for Fritz to compare compensation growth.
  • Fritz'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 Ribbon Communications management team in years:

1.3
Average Tenure
55
Average Age
  • The average tenure for the Ribbon Communications management team is less than 2 years, this suggests a new team.
Management Team

Fritz Hobbs

TITLE
CEO, President & Director
COMPENSATION
$425K
AGE
71
TENURE
1.3 yrs

Daryl Raiford

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
55
TENURE
1.4 yrs

Kevin Riley

TITLE
Chief Technology Officer
COMPENSATION
$2M
AGE
47
TENURE
4.7 yrs

Mike Swade

TITLE
Executive Officer
COMPENSATION
$2M
AGE
55
TENURE
0.2 yrs

Rick Marmurek

TITLE
Senior VP & Chief Accounting Officer
AGE
53
TENURE
1.4 yrs

Sara Leggat

TITLE
Head of Investor Relations

Justin Ferguson

TITLE
Executive VP
AGE
40
TENURE
0.9 yrs

Steven Bruny

TITLE
Executive Vice President of Global Sales & Services
AGE
59
TENURE
0.2 yrs

Patrick Joggerst

TITLE
Chief Marketing Officer & Executive VP of Business Development
AGE
60
TENURE
1.3 yrs

Tony Scarfo

TITLE
Executive Vice President of Products
COMPENSATION
$2M
AGE
57
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Ribbon Communications board of directors in years:

1.4
Average Tenure
66.5
Average Age
  • The average tenure for the Ribbon Communications board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dick Lynch

TITLE
Chairman
COMPENSATION
$496K
AGE
69
TENURE
2.8 yrs

Fritz Hobbs

TITLE
CEO, President & Director
COMPENSATION
$425K
AGE
71
TENURE
1.4 yrs

Scott Schubert

TITLE
Independent Director
COMPENSATION
$486K
AGE
63
TENURE
10.1 yrs

Kim Fennebresque

TITLE
Director
COMPENSATION
$275K
AGE
68
TENURE
1.4 yrs

Beatriz Infante

TITLE
Independent Director
COMPENSATION
$473K
AGE
64
TENURE
9.2 yrs

Bruns Grayson

TITLE
Director
COMPENSATION
$271K
AGE
70
TENURE
1.4 yrs

Kent Mathy

TITLE
Director
COMPENSATION
$270K
AGE
58
TENURE
1.4 yrs

Rick Smith

TITLE
Director
COMPENSATION
$179K
AGE
65
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Ribbon Communications'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. Ribbon Communications 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.

RBBN News

Simply Wall St News

When Should You Buy Ribbon Communications Inc (NASDAQ:RBBN)?

Ribbon Communications Inc (NASDAQ:RBBN), a communications company based in United States,. … led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. … Let’s examine Ribbon Communications’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Is There An Opportunity With Ribbon Communications Inc's (NASDAQ:RBBN) 36.61% Undervaluation?

How far off is Ribbon Communications Inc (NASDAQ:RBBN) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Top Growth Stocks in February

NVTA’s forecasted bottom line growth is an optimistic double-digit 42.65%, driven by underlying sales, which is expected to more than double, over the next few years. … OMED’s forecasted bottom line growth is an optimistic 39.87%, driven by the underlying double-digit revenue growth of 7.84% over the next few years. … NasdaqGS:OMED Future Profit Feb 15th 18 For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.

Simply Wall St -

All You Need To Know About Ribbon Communications Inc's (NASDAQ:RBBN) Risks

View our latest analysis for Ribbon Communications An interpretation of RBBN's beta Ribbon Communications has a beta of 2.07, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements. … How RBBN's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Growth Stocks To Watch Out For In January

Profit growth, coupled with top-line expansion, is a positive indication. … PTGX’s projected future profit growth is a robust 22.51%, with an underlying triple-digit growth from its revenues expected over the upcoming years. … OTCPK:KSHB Future Profit Jan 15th 18 For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.

Simply Wall St -

An Intrinsic Value Calculation For Ribbon Communications Inc (NASDAQ:RBBN) Shows It's 23.15% Undervalued

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $8.50 $87.60 $85.82 $84.08 $82.37 Source Analyst x1 Analyst x1 Extrapolated @ (-2.03%) Extrapolated @ (-2.03%) Extrapolated @ (-2.03%) Present Value Discounted @ 9.92% $7.73 $72.50 $64.62 $57.59 $51.33 Present Value of 5-year Cash Flow (PVCF)= $254 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $82 × (1 + 2.5%) ÷ (9.9% – 2.5%) = $1,133 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,133 / ( 1 + 9.9%)5 = $706 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $960. … NasdaqGS:RBBN Intrinsic Value Jan 13th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Ribbon Communications Inc (NASDAQ:RBBN) As Financially Strong As Its Balance Sheet Indicates?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like Ribbon Communications Inc (NASDAQ:RBBN), as the company does not have to adhere to strict debt covenants. … See our latest analysis for Ribbon Communications Is financial flexibility worth the lower cost of capital? … RBBN’s absence of debt on its balance sheet may be due to lack of access to cheaper capital, or it may simply believe low cost is not worth sacrificing financial flexibility.

Simply Wall St -

Have Investors Already Priced In Ribbon Communications Inc's (NASDAQ:RBBN) Growth?

Ribbon Communications Inc (NASDAQ:RBBN), a communications company based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … According to my valuation model, Ribbon Communications seems to be fairly priced at around 15% below my intrinsic value, which means if you buy Ribbon Communications today, you’d be paying a fair price for it. … It seems like the market has already priced in Ribbon Communications’s positive outlook, with shares trading around its fair value.

Simply Wall St -

RBBN Company Info

Description

Ribbon Communications Inc. provides networked solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. The company offers service provider solutions, such as fixed network transformation, mobile network evolution, secure network interconnects, network functions virtualization, cloud communications, and communications security solutions that enables secure and innovative business and consumer communications services. Its enterprise solutions include unified communications (UC), Nortel private branch exchange evolution, UC security, contact centers, Microsoft Skype for Business, session management, and security and cloud communications solutions that allows enterprises to connect securely to SIP trunks and modernize communications networks. The company also offers solution and business consulting, system integration, deployment, and managed care services; and support services, such as managing software updates, appliance maintenance, appliance spare services and managed spares programs, and emergency assistance during disaster recovery. It serves telecommunications, wireless and cable service providers, and enterprises through direct sales and indirect channels. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Westford, Massachusetts.

Details
Name: Ribbon Communications Inc.
RBBN
Exchange: NasdaqGS
Founded: 1997
$544,935,938
107,270,854
Website: http://www.ribboncommunications.com
Address: Ribbon Communications Inc.
4 Technology Park Drive,
Westford,
Massachusetts, 01886,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RBBN Common Stock Nasdaq Global Select US USD 25. May 2000
DB NU42 Common Stock Deutsche Boerse AG DE EUR 25. May 2000
Number of employees
Current staff
Staff numbers
2,245
Ribbon Communications employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 23:43
End of day share price update: 2019/03/25 00:00
Last estimates confirmation: 2019/03/04
Last earnings filing: 2019/03/04
Last earnings reported: 2018/12/31
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.