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 -25.94%, its profits have risen by 77.9%
4
Below par performance in long term as well as near term
- Along with generating -25.94% 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 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.
110.1%
-0.19
50.79%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.27%
EBIT Growth (5y)
26.59%
EBIT to Interest (avg)
-13.28
Debt to EBITDA (avg)
9.14
Net Debt to Equity (avg)
-2.64
Sales to Capital Employed (avg)
2.11
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
50
Industry P/E
Price to Book Value
-5.05
EV to EBIT
31.13
EV to EBITDA
11.18
EV to Capital Employed
5.72
EV to Sales
1.72
PEG Ratio
0.21
Dividend Yield
0.24%
ROCE (Latest)
18.39%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
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 664.09 MM
NET SALES(Q)
Highest at USD 657.01 MM
PRE-TAX PROFIT(Q)
Highest at USD 49.76 MM
NET PROFIT(Q)
Highest at USD 46.07 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 16.61%
RAW MATERIAL COST(Y)
Fallen by -1.45% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 676.68 times
DIVIDEND PER SHARE(HY)
Highest at USD 6.62
OPERATING PROFIT(Q)
Highest at USD 120.29 MM
OPERATING PROFIT MARGIN(Q)
Highest at 18.31 %
EPS(Q)
Highest at USD 0.45
-6What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -205.23 %
CASH AND EQV(HY)
Lowest at USD 228.08 MM
INTEREST(Q)
Highest at USD 18.87 MM
Here's what is working for RingCentral, Inc.
Operating Cash Flow
Highest at USD 664.09 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)
Net Sales
Highest at USD 657.01 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 49.76 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)
Pre-Tax Profit
At USD 49.76 MM has Grown at 169.11%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 46.07 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Profit
At USD 46.07 MM has Grown at 196.05%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Profit
Highest at USD 120.29 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 18.31 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD 0.45
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 676.68 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 6.62
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 16.61%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -1.45% (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 62.5 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 RingCentral, Inc.
Interest
At USD 18.87 MM has Grown at 24.94%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at -205.23 % 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
Interest
Highest at USD 18.87 MM
in the last five periods and Increased by 24.94% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 228.08 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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