A Business at a Glance
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Rackspace Technology is a leading end-to-end, hybrid cloud and AI solutions company. We design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products and, adopt innovative technologies. Cloud technology is reinventing how companies store, process and manage their data. Businesses have accelerated their adoption of cloud technologies in recent years due to: •Strong growth in highly variable, high-scale workloads (a computing task performed by a business application) such as mobile applications, device telemetry and associated marketing, tracking and data. Those workloads have also driven an explosion of data volumes.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 2.7B | 2.7B | 3.0B | 3.1B | 3.0B | 2.7B |
| Net Income | -249M | -858M | -838M | -805M | -218M | -246M |
| EPS | $-1.05 | $-3.82 | $-3.89 | $-3.81 | $-1.05 | $-1.37 |
| Free Cash Flow | 69M | -71M | 278M | 166M | 262M | 200K |
| ROIC | -6.7% | -49.0% | -31.2% | -20.5% | -1.0% | 0.5% |
| Gross Margin | 19.3% | 19.5% | 21.3% | 27.4% | 31.1% | 36.4% |
| Debt/Equity | 0.00 | -2.74 | -18.38 | 5.27 | 2.51 | 2.43 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -126M | -909M | -899M | -679M | -44M | 25M |
| Operating Margin | -4.7% | -33.2% | -30.4% | -21.7% | -1.5% | 0.9% |
| ROE | 0.0% | - | - | -127.8% | -16.4% | -17.8% |
| Shares Outstanding | 244M | 225M | 215M | 211M | 208M | 179M |
| Metric | 2019 | 2020 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 2.4B | 2.7B | 3.0B | 3.1B | 3.0B | 2.7B | 2.7B |
| Gross Margin | 41.5% | 36.4% | 31.1% | 27.4% | 21.3% | 19.5% | 19.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 102M | 25M | -44M | -679M | -899M | -909M | -126M |
| Op. Margin | 4.2% | 0.9% | -1.5% | -21.7% | -30.4% | -33.2% | -4.7% |
| Net Income | -102M | -246M | -218M | -805M | -838M | -858M | -249M |
| Net Margin | -4.2% | -9.1% | -7.3% | -25.8% | -28.3% | -31.4% | -9.3% |
| Non-Recurring | 2.1M | 0 | 52M | 535M | 709M | 715M | 715M |
| Returns on Capital | |||||||
| ROIC | 2.2% | 0.5% | -1.0% | -20.5% | -31.2% | -49.0% | -6.7% |
| ROE | -11.4% | -17.8% | -16.4% | -127.8% | N/A | N/A | 0.0% |
| ROA | -1.6% | -3.9% | -3.4% | -14.7% | -20.5% | -24.0% | -8.8% |
| Cash Flow | |||||||
| Op. Cash Flow | 293M | 117M | 371M | 247M | 375M | 40M | 146M |
| Free Cash Flow | 95M | 200K | 262M | 166M | 278M | -71M | 69M |
| Owner Earnings | -233M | -424M | -129M | -211M | -60M | -319M | -213M |
| CapEx | 198M | 117M | 108M | 80M | 97M | 111M | 77M |
| Maint. CapEx | 496M | 466M | 425M | 388M | 370M | 295M | 295M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 496M | 466M | 425M | 388M | 370M | 295M | 295M |
| CapEx/OCF | N/A | 99.8% | 29.2% | 32.6% | 25.8% | 278.4% | 52.7% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 2.2M | 0 | 0 | 31M | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | 5.6% | N/A | N/A | 0.0% |
| Stock-Based Comp | 30M | 75M | 75M | 70M | 65M | 63M | 63M |
| Debt Repayment | 320M | 1.5B | 2.9B | 23M | 242M | 163M | 163M |
| Balance Sheet | |||||||
| Net Debt | 3.8B | 3.3B | 3.1B | 3.1B | 2.7B | 2.6B | 2.7B |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A | N/A | 100M |
| Long-Term Debt | 3.8B | 3.3B | 3.3B | 3.3B | 2.8B | 2.8B | 2.8B |
| Debt/Equity | 4.31 | 2.43 | 2.51 | 5.27 | -18.38 | -2.74 | 0.00 |
| Interest Coverage | 0.3 | 0.1 | -0.2 | -3.3 | -4.1 | -9.3 | -9.3 |
| Equity | 899M | 1.4B | 1.3B | 630M | -155M | -1.0B | -1.2B |
| Total Assets | 6.3B | 6.4B | 6.3B | 5.5B | 4.1B | 3.1B | 2.8B |
| Total Liabilities | 5.4B | 5.0B | 5.0B | 4.8B | 4.3B | 4.1B | 4.0B |
| Intangibles | 4.6B | 4.4B | 4.2B | 3.4B | 2.5B | 1.6B | 1.6B |
| Retained Earnings | -718M | -963M | -1.2B | -2.0B | -2.8B | -3.7B | -3.7B |
| Working Capital | -128M | 16M | 152M | 217M | -61M | -148M | -148M |
| Current Assets | 544M | 759M | 990M | 1.1B | 738M | 619M | 619M |
| Current Liabilities | 672M | 742M | 837M | 857M | 800M | 767M | 767M |
| Per Share Data | |||||||
| EPS | -0.62 | -1.37 | -1.05 | -3.81 | -3.89 | -3.82 | -1.05 |
| Owner EPS | -1.41 | -2.36 | -0.62 | -1.00 | -0.28 | -1.42 | -0.87 |
| Book Value | 5.45 | 7.71 | 6.38 | 2.98 | -0.72 | -4.47 | -4.87 |
| Cash Flow/Share | 1.78 | 0.65 | 1.78 | 1.17 | 1.74 | 0.18 | 0.19 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 165.0M | 179.4M | 207.9M | 211.2M | 215.4M | 224.7M | 243.6M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | -1.2 |
| P/FCF | N/A | N/A | 11.0 | 3.3 | 1.5 | N/A | 4.4 |
| EV/EBIT | N/A | 275.9 | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | 2.6 | 2.2 | 0.9 | N/A | N/A | N/A |
| Price/Sales | N/A | 1.2 | 1.3 | 0.5 | 0.1 | 0.2 | 0.1 |
| FCF Yield | N/A | 0.0% | 9.1% | 30.3% | 64.9% | -14.3% | 22.8% |
| Market Cap | N/A | 3.6B | 2.9B | 549M | 429M | 496M | 302M |
| Avg. Price | N/A | 18.10 | 18.54 | 7.82 | 2.01 | 2.19 | 1.24 |
| Year-End Price | N/A | 19.82 | 13.87 | 2.60 | 1.99 | 2.21 | 1.24 |
Rackspace Technology, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 4.4x vs a median of 3.3x. The company's 5-year average gross margin is 27.1%. At current prices, the estimated annualized return to fair value is +32.8%.
Rackspace Technology, Inc. (RXT) has a 5-year average return on invested capital (ROIC) of -20.2%. This is below average and may indicate limited pricing power.
Rackspace Technology, Inc. (RXT) has a market capitalization of $302M. It is classified as a small-cap stock.
Rackspace Technology, Inc. (RXT) does not currently pay a regular dividend.
Rackspace Technology, Inc. (RXT) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
Rackspace Technology, Inc. (RXT) reported annual revenue of $2.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Rackspace Technology, Inc. (RXT) has a net profit margin of -31.4%. The company is currently unprofitable.
Rackspace Technology, Inc. (RXT) generated $-71 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Rackspace Technology, Inc. (RXT) reported earnings per share (EPS) of $-3.82 in its most recent fiscal year.
Rackspace Technology, Inc. (RXT) has a 5-year average gross margin of 27.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 6 years of financial data for Rackspace Technology, Inc. (RXT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Rackspace Technology, Inc. (RXT) has a book value per share of $-4.47, based on its most recent annual SEC filing.