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RBBN

Ribbon Communications NasdaqGS:RBBN Stock Report

Last Price

US$2.88

Market Cap

US$432.4m

7D

-7.1%

1Y

-60.3%

Updated

21 May, 2022

Data

Company Financials +
RBBN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

RBBN Stock Overview

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

Ribbon Communications Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ribbon Communications
Historical stock prices
Current Share PriceUS$2.88
52 Week HighUS$8.31
52 Week LowUS$2.74
Beta1.02
1 Month Change-7.99%
3 Month Change-17.36%
1 Year Change-60.28%
3 Year Change-37.66%
5 Year Change-57.02%
Change since IPO-96.58%

Recent News & Updates

May 02
Is It Time To Consider Buying Ribbon Communications Inc. (NASDAQ:RBBN)?

Is It Time To Consider Buying Ribbon Communications Inc. (NASDAQ:RBBN)?

While Ribbon Communications Inc. ( NASDAQ:RBBN ) might not be the most widely known stock at the moment, it received a...

Shareholder Returns

RBBNUS CommunicationsUS Market
7D-7.1%-10.4%-2.7%
1Y-60.3%-13.5%-12.9%

Return vs Industry: RBBN underperformed the US Communications industry which returned -13.5% over the past year.

Return vs Market: RBBN underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is RBBN's price volatile compared to industry and market?
RBBN volatility
RBBN Average Weekly Movement8.4%
Communications Industry Average Movement7.2%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
19973,685Bruce McClellandhttps://www.ribboncommunications.com

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products; and solutions and services for enabling voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications and unified communications and collaboration.

Ribbon Communications Fundamentals Summary

How do Ribbon Communications's earnings and revenue compare to its market cap?
RBBN fundamental statistics
Market CapUS$432.40m
Earnings (TTM)-US$202.47m
Revenue (TTM)US$825.38m

0.5x

P/S Ratio

-2.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RBBN income statement (TTM)
RevenueUS$825.38m
Cost of RevenueUS$366.61m
Gross ProfitUS$458.78m
Other ExpensesUS$661.25m
Earnings-US$202.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.35
Gross Margin55.58%
Net Profit Margin-24.53%
Debt/Equity Ratio73.9%

How did RBBN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


0.91x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: RBBN ($2.88) is trading above our estimate of fair value ($2.47)

Significantly Below Fair Value: RBBN is trading above our estimate of fair value.


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 is good value based on its PB Ratio (0.9x) compared to the US Communications industry average (1.7x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RBBN's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if RBBN's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RBBN's revenue (3.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: RBBN's revenue (3.4% 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?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.4%

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 5.4% 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 (38.2%).


Return on Equity

High ROE: RBBN has a negative Return on Equity (-42.68%), as it is currently unprofitable.


Financial Health

How is Ribbon Communications's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RBBN's short term assets ($422.7M) exceed its short term liabilities ($338.2M).

Long Term Liabilities: RBBN's short term assets ($422.7M) do not cover its long term liabilities ($451.6M).


Debt to Equity History and Analysis

Debt Level: RBBN's net debt to equity ratio (53.7%) 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 15.8% per year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RBBN has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure


CEO

Bruce McClelland (54 yo)

2.17yrs

Tenure

US$781,423

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 ($USD781.42K) is below average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RBBN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: RBBN's board of directors are not considered experienced ( 2.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Ribbon Communications Inc.
  • Ticker: RBBN
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$432.401m
  • Shares outstanding: 150.14m
  • Website: https://www.ribboncommunications.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.