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
How much should you sell?
- 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%
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
Valuation Key Factors 
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
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
Technical Movement
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 2025MOJO 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 periodsMOJO 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 periodsMOJO 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 periodsMOJO 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






