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RingCentral Inc Class A RNG

Morningstar Rating
$30.53 +1.02 (3.46%)
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Company Report

RingCentral Is Well Suited to Drive Enterprise Telephony Modernization

RingCentral is a leading provider of unified communications as a service, or UCaaS, software that combines voice, video, and messaging communication modalities in one simple cloud-based application. This approach to communications provides greater flexibility to the company, its employees, and the customers it communicates with daily. We think the core importance of communication, combined with the company’s leadership position, provides RingCentral with a significant growth opportunity. However, uneven returns and intensifying competition inform our no-moat rating.

Price vs Fair Value

RNG is trading at a 42% discount.
Price
$29.51
Fair Value
$62.00
Uncertainty
Very High
1-Star Price
$33.79
5-Star Price
$49.40
Economic Moat
Sbhy
Capital Allocation
Dtmfl

Bulls Say, Bears Say

Bulls

RingCentral has inked partnerships with a variety of legacy PBX and telecommunication service providers to deliver co-branded UCaaS solutions to approximately half of the 400 million on-premises phone seats.

Bears

We see significant competition from software giants like Microsoft, emerging threats like Zoom, well-positioned incumbents like Cisco, legacy providers like Avaya, and service providers like Verizon.

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News

Trading Information

Previous Close Price
$29.51
Day Range
$29.6630.82
52-Week Range
$25.0843.28
Bid/Ask
$30.53 / $31.43
Market Cap
$2.82 Bil
Volume/Avg
673,362 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
9.94
Price/Sales
1.27
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
11.48%

Company Profile

RingCentral is a unified communications as a service, or UCaaS, provider. Its software helps users communicate and collaborate via voice, video, and messaging across all device types and all from one platform. RingCentral helps customers modernize and move from legacy on-premises systems to modern, cloud-based systems. Beyond its core RingCentral MVP solution, RingCentral also offers a cloud-based contact center solution, a stand-alone video meetings solution, and webinars.
Sector
Technology
Industry
Software - Application
Stock Style Box
Small Core
Total Number of Employees
4,084

Competitors

Valuation

Metric
RNG
MSFT
ZM
Price/Earnings (Normalized)
9.9436.2511.43
Price/Book Value
12.512.28
Price/Sales
1.2713.154.06
Price/Cash Flow
4.5528.669.91
Price/Earnings
RNG
MSFT
ZM

Financial Strength

Metric
RNG
MSFT
ZM
Quick Ratio
0.931.024.26
Current Ratio
1.341.224.50
Interest Coverage
−3.3641.49
Quick Ratio
RNG
MSFT
ZM

Profitability

Metric
RNG
MSFT
ZM
Return on Assets (Normalized)
15.30%19.91%17.93%
Return on Equity (Normalized)
39.57%22.86%
Return on Invested Capital (Normalized)
25.91%29.21%22.59%
Return on Assets
RNG
MSFT
ZM
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