| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$3.10 |
| 52 Week High | US$8.31 |
| 52 Week Low | US$2.74 |
| Beta | 1.02 |
| 1 Month Change | -0.32% |
| 3 Month Change | -28.90% |
| 1 Year Change | -55.52% |
| 3 Year Change | -36.61% |
| 5 Year Change | -59.69% |
| Change since IPO | -96.32% |
Recent News & Updates
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
| RBBN | US Communications | US Market | |
|---|---|---|---|
| 7D | -4.3% | -0.3% | -2.5% |
| 1Y | -55.5% | -3.3% | -10.4% |
Return vs Industry: RBBN underperformed the US Communications industry which returned -3.3% over the past year.
Return vs Market: RBBN underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| RBBN volatility | |
|---|---|
| RBBN Average Weekly Movement | 10.3% |
| Communications Industry Average Movement | 7.2% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: RBBN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: RBBN's weekly volatility (10%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 3,685 | Bruce McClelland | https://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
| RBBN fundamental statistics | |
|---|---|
| Market Cap | US$465.43m |
| Earnings (TTM) | -US$202.47m |
| Revenue (TTM) | US$825.38m |
0.6x
P/S Ratio-2.3x
P/E RatioIs RBBN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RBBN income statement (TTM) | |
|---|---|
| Revenue | US$825.38m |
| Cost of Revenue | US$366.61m |
| Gross Profit | US$458.78m |
| Other Expenses | US$661.25m |
| Earnings | -US$202.47m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.35 |
| Gross Margin | 55.58% |
| Net Profit Margin | -24.53% |
| Debt/Equity Ratio | 73.9% |
How did RBBN perform over the long term?
See historical performance and comparisonValuation
Is Ribbon Communications undervalued compared to its fair value and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
0.98x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: RBBN ($3.1) is trading above our estimate of fair value ($2.53)
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 (1x) compared to the US Communications industry average (1.6x).
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
0/6Future 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 (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
0/6Past 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
3/6Financial 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
0/6Dividend 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.
Next Steps
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 ($USD2.65M).
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$465.431m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.