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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consensus Cloud Solutions, Inc.

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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)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -10.03% of over the last 5 years

Flat results in Mar 26

RAW MATERIAL COST(Y) Grown by 6.48% (YoY)
NET SALES(Q) Lowest at USD 162.61 MM
OPERATING PROFIT(Q) Lowest at USD -14.98 MM

With ROE of 14.17%, it has a attractive valuation with a 0.83 Price to Book Value

Over the past year, while the stock has generated a return of -33.68%, its profits have risen by 243.4% ; the PEG ratio of the company is 0

High Institutional Holdings at 77.26%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.12% over the previous quarter.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 25.41% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -33.68% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ribbon Communications, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ribbon Communications, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ribbon Communications, Inc.

-33.68%

-0.25

59.65%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.02%

EBIT Growth (5y)

-10.03%

EBIT to Interest (avg)

0.13

Debt to EBITDA (avg)

4.86

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.12

Tax Ratio

8.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

77.26%

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

Industry P/E

Price to Book Value

0.83

EV to EBIT

30.04

EV to EBITDA

7.61

EV to Capital Employed

0.89

EV to Sales

0.74

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

2.97%

ROE (Latest)

14.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

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

14What is working for the Company

NET PROFIT(HY)

Higher at USD 66.08 MM

ROCE(HY)

Highest at 7.83%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.85 times

-13What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.48% (YoY

NET SALES(Q)

Lowest at USD 162.61 MM

OPERATING PROFIT(Q)

Lowest at USD -14.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.21 %

PRE-TAX PROFIT(Q)

Lowest at USD -38.9 MM

NET PROFIT(Q)

Lowest at USD -32.45 MM

EPS(Q)

Lowest at USD -0.2

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

Debtors Turnover Ratio

Highest at 3.85 times

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 Ribbon Communications, Inc.

Pre-Tax Profit

At USD -38.9 MM has Fallen at -79.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -32.45 MM has Fallen at -55.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 162.61 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -14.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -9.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -38.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -32.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 6.48% (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