Ribbon Communications, Inc. (RBBN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

i3 Verticals, Inc.

Riskified Ltd.

Weave Communications, Inc.

Ribbon Communications, Inc.

Consensus Cloud Solutions, Inc.

SimilarWeb Ltd.

GDEV, Inc.

Gambling.com Group Ltd.

NextNav, Inc.

Rubicon Technologies, Inc.

SciPlay Corp.

Why is Ribbon Communications, Inc. ?

Poor Management Efficiency with a low ROCE of 2.01%

The company has been able to generate a Return on Capital Employed (avg) of 2.01% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 8.42% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At USD 22.06 MM has Grown at 153.56%
DEBT-EQUITY RATIO (HY) Highest at 93.67 %

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 -26.94%, its profits have risen by 11.9%

Below par performance in long term as well as near term

Along with generating -26.94% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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 Software Products)

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

Is Ribbon Communications, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ribbon Communications, Inc.

-29.34%

-0.11

53.06%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.29%

EBIT Growth (5y)

8.42%

EBIT to Interest (avg)

0.13

Debt to EBITDA (avg)

4.86

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.11

Tax Ratio

8.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

76.01%

ROCE (avg)

2.01%

ROE (avg)

3.95%

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

1.71

EV to EBIT

39.88

EV to EBITDA

13.66

EV to Capital Employed

1.41

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

3.54%

ROE (Latest)

-9.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 46.57 MM

ROCE(HY)

Highest at -11.45%

RAW MATERIAL COST(Y)

Fallen by 1.27% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.75 times

PRE-TAX PROFIT(Q)

At USD -3.67 MM has Grown at 72.64%

NET PROFIT(Q)

At USD -5.85 MM has Grown at 60.73%

-9What is not working for the Company

INTEREST(HY)

At USD 22.06 MM has Grown at 153.56%

DEBT-EQUITY RATIO (HY)

Highest at 93.67 %

Here's what is working for Ribbon Communications, Inc.

Operating Cash Flow

Highest at USD 46.57 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD -3.67 MM has Grown at 72.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -5.85 MM has Grown at 60.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 3.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 15.54 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 Ribbon Communications, Inc.

Interest

At USD 22.06 MM has Grown at 153.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 93.67 %

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