ScoreWhy is RingCentral, 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 25.88% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With a growth in Operating Profit of 39.47%, the company declared Very Positive results in Jun 25
- The company has declared positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 572.84 MM
- INTEREST COVERAGE RATIO(Q) Highest at 609.85
- OPERATING PROFIT(Q) Highest at USD 100.42 MM
3
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -21.08%, its profits have risen by 77.9%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -21.08% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to RingCentral, 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 RingCentral, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
RingCentral, Inc.
-26.44%
-0.29
51.29%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.94%
EBIT Growth (5y)
25.88%
EBIT to Interest (avg)
-13.28
Debt to EBITDA (avg)
9.14
Net Debt to Equity (avg)
-2.64
Sales to Capital Employed (avg)
1.87
Tax Ratio
52.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0.84%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-4.52
EV to EBIT
103.27
EV to EBITDA
13.79
EV to Capital Employed
4.36
EV to Sales
1.60
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.22%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend31What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 572.84 MM
INTEREST COVERAGE RATIO(Q)
Highest at 609.85
OPERATING PROFIT(Q)
Highest at USD 100.42 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.19 %
PRE-TAX PROFIT(Q)
Highest at USD 18.49 MM
RAW MATERIAL COST(Y)
Fallen by -1.4% (YoY
NET SALES(Q)
Highest at USD 620.4 MM
NET PROFIT(Q)
Highest at USD 15.56 MM
EPS(Q)
Highest at USD 0.14
-3What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -274.17 %
CASH AND EQV(HY)
Lowest at USD 322.55 MM
Here's what is working for RingCentral, Inc.
Interest Coverage Ratio
Highest at 609.85 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 18.49 MM has Grown at 278.15%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 15.56 MM has Grown at 214.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 572.84 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 100.42 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.19 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 18.49 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Sales
Highest at USD 620.4 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 15.56 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.14
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -1.4% (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
Here's what is not working for RingCentral, Inc.
Debt-Equity Ratio
Highest at -274.17 % 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 322.55 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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