Rackspace Technology, Inc. (RXT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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

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Yext, Inc.

Bitdeer Technologies Group

Rackspace Technology, Inc.

Sterling Check Corp.

MultiPlan Corp.

CleanSpark, Inc.

Marathon Digital Holdings, Inc.

Cipher Mining, Inc.

Why is Rackspace Technology, Inc. ?

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

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 495.90%, its profits have risen by 22.6%

Real-Time Research Report

Verdict Report

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, High Return

Absolute

Risk Adjusted

Volatility

Rackspace Technology, Inc.

495.9%

0.80

257.12%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

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

Pledged Shares

Institutional Holding

74.10%

ROCE (avg)

0.37%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

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

Dividend Yield

ROCE (Latest)

-4.45%

ROE (Latest)

Negative BV

Technicals

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

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

9What is working for the Company

NET PROFIT(HY)

Higher at USD -80.8 MM

INTEREST COVERAGE RATIO(Q)

Highest at 262.91

DEBTORS TURNOVER RATIO(HY)

Highest at 9.9 times

OPERATING PROFIT(Q)

Highest at USD 79.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.71 %

EPS(Q)

Highest at USD 0.03

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -257.56 %

CASH AND EQV(HY)

Lowest at USD 199.4 MM

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

Interest Coverage Ratio

Highest at 262.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Higher at USD -80.8 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Operating Profit

Highest at USD 79.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 11.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at USD 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 9.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At USD 88.2 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Debt-Equity Ratio

Highest at -257.56 % 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 199.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents