Rackspace Technology, Inc.

  • Market Cap: Micro Cap
  • Industry: Commercial Services & Supplies
  • ISIN: US7501021056
USD
1.30
-0.23 (-15.03%)
  • 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
AvePoint, Inc.
Fiverr International Ltd.
Bitdeer Technologies Group
Yext, Inc.
Marathon Digital Holdings, Inc.
Cipher Mining, Inc.
Sterling Check Corp.
Rackspace Technology, Inc.
CleanSpark, Inc.
MultiPlan Corp.

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 -206.45% of over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at times
2
Flat results in Sep 25
  • DEBT-EQUITY RATIO (HY) Highest at -267.67 %
  • RAW MATERIAL COST(Y) Grown by 6.24% (YoY)
  • CASH AND EQV(HY) Lowest at USD 203.4 MM
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 -26.46%, its profits have risen by 17.1%
4
Underperformed the market in the last 1 year
  • Even though the market (S&P 500) has generated returns of 13.68% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.46% returns
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, Low Return

Absolute
Risk Adjusted
Volatility
Rackspace Technology, Inc.
-31.22%
-0.18
225.51%
S&P 500
13.68%
0.71
19.28%
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)
0.53%
EBIT Growth (5y)
-206.45%
EBIT to Interest (avg)
-0.27
Debt to EBITDA (avg)
8.51
Net Debt to Equity (avg)
-2.59
Sales to Capital Employed (avg)
1.29
Tax Ratio
2.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
73.90%
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
-0.41
EV to EBIT
-39.43
EV to EBITDA
11.67
EV to Capital Employed
2.05
EV to Sales
1.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.19%
ROE (Latest)
Negative BV
stock-recommendationTechnicals

Technical key factors

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

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

3What is working for the Company
NET PROFIT(HY)

Higher at USD -130.2 MM

-4What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at -267.67 %

RAW MATERIAL COST(Y)

Grown by 6.24% (YoY

CASH AND EQV(HY)

Lowest at USD 203.4 MM

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

Net Profit
Higher at USD -130.2 MM
than preceding 12 month period ended Sep 2025
MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Depreciation
Highest at USD 91.1 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Debt-Equity Ratio
Highest at -267.67 % 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

Cash and Eqv
Lowest at USD 203.4 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 6.24% (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