A Business at a Glance
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Ribbon Communications Inc.
RBBN
$362M
Mkt Cap
$2.01
-0.50%
Ribbon Communications Inc. (RBBN) has a current P/E ratio of 9.1, compared to its historical median P/E of 12.1. The stock is currently considered Cheap based on its historical valuation range.
Ribbon Communications Inc. (RBBN) has a 5-year average return on invested capital (ROIC) of -6.2%. This is below average and may indicate limited pricing power.
Ribbon Communications Inc. (RBBN) has a market capitalization of $353M. It is classified as a small-cap stock.
Ribbon Communications Inc. (RBBN) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.77%.
Based on historical P/E analysis, Ribbon Communications Inc. (RBBN) appears cheap. The current P/E of 9.1 is 24% below its historical median of 12.1. The estimated fair value CAGR (P/E method) is 0.4%.
Ribbon Communications Inc. (RBBN) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
Item 1. Business Company Overview We are a leading global provider of communications technology to service providers and enterprises. We provide a broad range of software and high-performance hardware products, network solutions, and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large enterprises and industry verticals such as finance, education, government, utilities, and transportation. Our mission is to create a recognized global technology leader that provides network solutions that are scalable, elastic and cloud-centric, enabling the secure exchange of information.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 826M | 845M | 834M | 826M | 820M | 845M |
| Net Income | 31M | 40M | -54M | -66M | -98M | -177M |
| EPS | $0.18 | $0.22 | $-0.31 | $-0.39 | $-0.63 | $-1.20 |
| Free Cash Flow | 17M | 26M | 28M | 7.7M | -37M | 2.1M |
| ROIC | -1.7% | 5.3% | 2.5% | -9.0% | -11.5% | -18.3% |
| Gross Margin | 49.4% | 49.8% | 52.7% | 49.4% | 48.9% | 52.6% |
| Debt/Equity | 0.88 | 0.90 | 0.95 | 0.63 | 0.75 | 0.84 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -15M | -3.3M | 17M | -24M | -48M | -118M |
| Operating Margin | -1.9% | -0.4% | 2.0% | -2.9% | -5.9% | -13.9% |
| ROE | 7.5% | 9.3% | -12.7% | -13.6% | -18.8% | -29.2% |
| Shares Outstanding | 176M | 180M | 175M | 170M | 156M | 148M |
| Metric | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||||
| Revenue | 249M | 253M | 330M | 578M | 563M | 844M | 845M | 820M | 826M | 834M | 845M | 826M |
| Gross Margin | 64.9% | 66.4% | 61.1% | 60.1% | 56.3% | 53.4% | 52.6% | 48.9% | 49.4% | 52.7% | 49.8% | 49.4% |
| R&D | 78M | 73M | 101M | 145M | 141M | 195M | 195M | 204M | 191M | 180M | 179M | 180M |
| SG&A | 40M | 36M | 48M | 66M | 54M | 63M | 54M | 51M | 55M | 69M | 64M | 66M |
| EBIT | -31M | -14M | -55M | -65M | -189M | N/A | -118M | -48M | -24M | 17M | -3.3M | -15M |
| Op. Margin | -12.5% | -5.4% | -16.7% | -11.3% | -33.6% | N/A | -13.9% | -5.9% | -2.9% | 2.0% | -0.4% | -1.9% |
| Net Income | -32M | -14M | -35M | -77M | -130M | 89M | -177M | -98M | -66M | -54M | 40M | 31M |
| Net Margin | -12.8% | -5.5% | -10.7% | -13.3% | -23.1% | 10.5% | -21.0% | -12.0% | -8.0% | -6.5% | 4.7% | 3.8% |
| Non-Recurring | 2.1M | 2.7M | 9.4M | 17M | 181M | 100M | 130M | 11M | 16M | 10M | 20M | 16M |
| Returns on Capital | ||||||||||||
| ROIC | N/A | -6.3% | -8.3% | -12.5% | -23.2% | N/A | -18.3% | -11.5% | -9.0% | 2.5% | 5.3% | -1.7% |
| ROE | N/A | -6.3% | -8.4% | -12.7% | -24.2% | 15.1% | -29.2% | -18.8% | -13.6% | -12.7% | 9.3% | 7.5% |
| ROA | N/A | -8.8% | -5.8% | -8.2% | -14.7% | 7.5% | -12.2% | -7.5% | -5.5% | -4.7% | 3.3% | 2.7% |
| Cash Flow | ||||||||||||
| Op. Cash Flow | 20M | 19M | 8.1M | -9.6M | 56M | 102M | 19M | -26M | 17M | 50M | 51M | 33M |
| Free Cash Flow | 12M | 15M | 4.1M | -18M | 45M | 75M | 2.1M | -37M | 7.7M | 28M | 26M | 17M |
| Owner Earnings | -8.9M | -8.1M | -35M | -82M | -18M | 9.6M | -84M | -122M | -76M | -30M | -29M | -121M |
| CapEx | 7.8M | 4.6M | 4.0M | 7.9M | 11M | 27M | 17M | 10M | 9.4M | 22M | 25M | 16M |
| Maint. CapEx | 7.1M | 7.5M | 17M | 61M | 61M | 78M | 84M | 76M | 71M | 64M | 61M | 133M |
| Growth CapEx | 685K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 7.1M | 7.5M | 17M | 61M | 61M | 78M | 84M | 76M | 71M | 64M | 61M | 133M |
| CapEx/OCF | 39.2% | 24.1% | 49.5% | N/A | 19.4% | 26.3% | 89.3% | N/A | 54.9% | 44.6% | 49.3% | 49.4% |
| Capital Allocation | ||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 7.9M | 9.5M | 0 | 0 | 4.5M | 0 | 0 | 0 | 0 | 0 | 9.0M | 9.8M |
| Buyback Yield | 2.1% | 3.0% | N/A | N/A | 1.3% | N/A | N/A | N/A | N/A | N/A | 1.7% | 2.8% |
| Stock-Based Comp | 22M | 20M | 26M | 11M | 13M | 14M | 19M | 19M | 22M | 16M | 19M | 21M |
| Debt Repayment | 0 | 0 | 731K | 624K | 891K | 14M | 789K | 1.0M | 1.7M | 6.3M | 0 | 0 |
| Balance Sheet | ||||||||||||
| Net Debt | N/A | N/A | -54M | -51M | 49M | 349M | 339M | 321M | 261M | 296M | 309M | 299M |
| Cash & Equiv. | 50M | 32M | 57M | 44M | 45M | 128M | 104M | 67M | 26M | 88M | 96M | 68M |
| Long-Term Debt | N/A | N/A | 20M | 0 | 46M | 369M | 350M | 306M | 197M | 331M | 325M | 323M |
| Debt/Equity | N/A | 0.41 | 0.03 | 0.00 | 0.19 | 0.70 | 0.84 | 0.75 | 0.63 | 0.95 | 0.90 | 0.88 |
| Interest Coverage | -2401.3 | -136.1 | -3944.9 | -1257.8 | -714.9 | N/A | -1758.1 | -3717.2 | N/A | 7.7 | -16.6 | -16.6 |
| Equity | N/A | 219M | 615M | 590M | 483M | 687M | 527M | 518M | 453M | 405M | 449M | 419M |
| Total Assets | N/A | 308M | 911M | 957M | 815M | 1.5B | 1.3B | 1.3B | 1.1B | 1.2B | 1.2B | 1.2B |
| Total Liabilities | N/A | 89M | 295M | 367M | 332M | 860M | 821M | 737M | 691M | 758M | 763M | 741M |
| Intangibles | N/A | 30M | 244M | 251M | 213M | 417M | 351M | 295M | 238M | 188M | 143M | 134M |
| Retained Earnings | N/A | -1.0B | -1.1B | -1.1B | -1.3B | -1.2B | -1.4B | -1.5B | -1.5B | -1.6B | -1.5B | -1.6B |
| Working Capital | N/A | 101M | 39M | -11M | 73M | 120M | 137M | 147M | 78M | 135M | 139M | 110M |
| Current Assets | N/A | 178M | 282M | 278M | 279M | 448M | 481M | 478M | 419M | 464M | 454M | 408M |
| Current Liabilities | N/A | 77M | 243M | 290M | 207M | 328M | 344M | 330M | 341M | 329M | 315M | 299M |
| Per Share Data | ||||||||||||
| EPS | -0.64 | -0.28 | -0.60 | -0.74 | -1.19 | 0.61 | -1.20 | -0.63 | -0.39 | -0.31 | 0.22 | 0.18 |
| Owner EPS | -0.18 | -0.16 | -0.59 | -0.79 | -0.17 | 0.07 | -0.57 | -0.78 | -0.45 | -0.17 | -0.16 | -0.69 |
| Book Value | N/A | 4.40 | 10.47 | 5.69 | 4.42 | 4.73 | 3.57 | 3.33 | 2.67 | 2.31 | 2.49 | 2.39 |
| Cash Flow/Share | 0.40 | 0.39 | 0.14 | -0.09 | 0.51 | 0.70 | 0.13 | -0.17 | 0.10 | 0.29 | 0.29 | 0.94 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 49.8M | 49.8M | 58.8M | 103.8M | 109.3M | 145.2M | 147.7M | 155.7M | 169.8M | 175.0M | 180.2M | 175.5M |
| Valuation | ||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | 10.7 | N/A | N/A | N/A | N/A | 13.4 | 11.2 |
| P/FCF | 30.7 | 21.9 | 113.4 | N/A | 7.6 | 12.7 | 437.9 | N/A | 64.5 | 25.8 | 20.4 | 21.2 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | 13.0 | N/A | N/A | N/A | 52.4 | N/A | N/A |
| Price/Book | N/A | 1.5 | 0.8 | 0.9 | 0.7 | 1.4 | 1.7 | 0.8 | 1.1 | 1.8 | 1.2 | 0.8 |
| Price/Sales | 1.9 | 1.5 | 1.3 | 1.1 | 0.9 | 0.7 | 1.2 | 0.6 | 0.6 | 0.7 | 0.8 | 0.4 |
| FCF Yield | 3.3% | 4.6% | 0.9% | -3.3% | 13.2% | 7.9% | 0.2% | -9.1% | 1.5% | 3.9% | 4.9% | 4.7% |
| Market Cap | 371M | 319M | 463M | 528M | 339M | 951M | 898M | 402M | 497M | 717M | 531M | 353M |
| Avg. Price | 9.52 | 7.60 | 7.12 | 6.33 | 4.88 | 4.01 | 7.14 | 3.26 | 2.90 | 3.27 | 3.75 | 2.01 |
| Year-End Price | 7.45 | 6.41 | 7.88 | 5.09 | 3.10 | 6.55 | 6.08 | 2.58 | 2.93 | 4.10 | 2.95 | 2.01 |
Ribbon Communications Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Ribbon Communications Inc. trades at 9.1x trailing earnings, compared to its 15-year median P/E of 12.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 13.5x vs a median of 21.1x. The company's 5-year average gross margin is 50.7%. Total shareholder yield (buybacks) is 2.8%. At current prices, the estimated annualized return to fair value is -29.3%.
Ribbon Communications Inc. (RBBN) reported annual revenue of $845 million in its most recent fiscal year, based on SEC EDGAR filings.
Ribbon Communications Inc. (RBBN) has a net profit margin of 4.7%. This is a modest margin.
Ribbon Communications Inc. (RBBN) generated $26 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Ribbon Communications Inc. (RBBN) has a debt-to-equity ratio of 0.90. This indicates moderate leverage.
Ribbon Communications Inc. (RBBN) reported earnings per share (EPS) of $0.22 in its most recent fiscal year.
Ribbon Communications Inc. (RBBN) has a return on equity (ROE) of 9.3%. This indicates moderate shareholder returns.
Ribbon Communications Inc. (RBBN) has a 5-year average gross margin of 50.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 11 years of financial data for Ribbon Communications Inc. (RBBN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Ribbon Communications Inc. (RBBN) has a book value per share of $2.49, based on its most recent annual SEC filing.