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Rackspace Technology, Inc.

  • Market Cap: Small Cap
  • Industry: Commercial Services & Supplies
  • ISIN: US7501021056
  • NASDAQ: RXT
USD
4.05
-0.08 (-1.94%)

Sep 23

NAS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Global Blue Group Holding AG
Fiverr International Ltd.
AvePoint, Inc.
Yext, Inc.
Bitdeer Technologies Group
Sterling Check Corp.
Rackspace Technology, Inc.
MultiPlan Corp.
CleanSpark, Inc.
Marathon Digital Holdings, Inc.
Cipher Mining, Inc.

Why is Rackspace Technology, Inc. ?

1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
  • Poor long term growth as Operating profit has grown by an annual rate -215.62% of over the last 5 years
  • The company has a negative book value of Rs 1,219.50 crore
2
The company has declared negative results in Jun'2026 after 2 consecutive positive quarters
  • OPERATING CASH FLOW(Y) Lowest at USD 104 MM
  • DEBT-EQUITY RATIO (HY) Highest at -249.61 %
  • RAW MATERIAL COST(Y) Grown by 10.12% (YoY)
3
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of 186.81%, its profits have risen by 22.6%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rackspace Technology, Inc. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Rackspace Technology, Inc.
177.4%
0.28
263.89%
S&P 500
15.76%
1.22
13.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-0.16%
EBIT Growth (5y)
-215.62%
EBIT to Interest (avg)
-0.27
Debt to EBITDA (avg)
8.51
Net Debt to Equity (avg)
-2.59
Sales to Capital Employed (avg)
1.36
Tax Ratio
2.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
74.10%
ROCE (avg)
0.37%
ROE (avg)
0
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-0.21
EV to EBIT
-44.10
EV to EBITDA
14.78
EV to Capital Employed
1.96
EV to Sales
1.12
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.45%
ROE (Latest)
Negative BV
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
NET PROFIT(HY)

Higher at USD -98.3 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 9.96 times

-10What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at USD 104 MM

DEBT-EQUITY RATIO (HY)

Highest at -249.61 %

RAW MATERIAL COST(Y)

Grown by 10.12% (YoY

CASH AND EQV(HY)

Lowest at USD 204.2 MM

INTEREST(Q)

Highest at USD 34.2 MM

Here's what is working for Rackspace Technology, Inc.

Net Profit
Higher at USD -98.3 MM
than preceding 12 month period ended Jun 2026
MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Debtors Turnover Ratio
Highest at 9.96 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Rackspace Technology, Inc.

Operating Cash Flow
Lowest at USD 104 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest
At USD 34.2 MM has Grown at 13.25%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio
Highest at -249.61 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest
Highest at USD 34.2 MM
in the last five periods and Increased by 13.25% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv
Lowest at USD 204.2 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 10.12% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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