(RNG) Ringcentral - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 3.687m USD | Total Return: 58.3% in 12m
Avg Turnover: 74.2M
EPS Trend: -6.8%
Qual. Beats: 1
Rev. Trend: 98.9%
Qual. Beats: 0
Warnings
Altman Z'' -3.78 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Idiosyncratic Leader
RingCentral, Inc. (RNG) provides cloud-based business communication and collaboration solutions powered by artificial intelligence. The companys core offering, RingEX, integrates voice, SMS, and video into a unified communications as a service (UCaaS) platform. Its product suite also includes contact center as a service (CCaaS) tools, virtual event management, and specific AI agents designed to automate inbound communications and provide real-time meeting summaries.
The company operates within the Application Software sector, primarily utilizing a software-as-a-service (SaaS) subscription model. This model generates recurring revenue by providing scalable infrastructure for enterprise and small-to-medium business clients across diverse industries including healthcare, finance, and education. As businesses transition from legacy on-premise hardware to cloud-based systems, RingCentral competes in a market characterized by high integration requirements with existing customer relationship management (CRM) software.
For a more detailed analysis of the companys competitive positioning, consider exploring the data on ValueRay. RingCentral distributes its services through a multi-channel approach involving direct sales, global service providers, and a network of resellers. Headquartered in Belmont, California, the firm has maintained its focus on integrated cloud communications since its incorporation in 1999.
- AI-powered contact center adoption accelerates high-margin enterprise software revenue growth
- Strategic partnerships with global service providers drive international market expansion
- Competitive pricing pressure from Microsoft Teams impacts unified communications market share
- High debt servicing costs influence free cash flow and net income margins
- Agentic AI product integration improves customer retention and subscription upsell opportunities
| Net Income: 84.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.47 > 0.02 and ΔFCF/TA 18.87 > 1.0 |
| NWC/Revenue: -2.74% < 20% (prev -17.63%; Δ 14.89% < -1%) |
| CFO/TA 0.45 > 3% & CFO 638.4m > Net Income 84.3m |
| Net Debt (1.36b) to EBITDA (390.4m): 3.49 < 3 |
| Current Ratio: 0.89 > 1.5 & < 3 |
| Outstanding Shares: last quarter (87.0m) vs 12m ago -4.42% < -2% |
| Gross Margin: 71.62% > 18% (prev 70.54%; Δ 1.08% > 0.5%) |
| Asset Turnover: 166.9% > 50% (prev 148.8%; Δ 18.03% > 0%) |
| Interest Coverage Ratio: 2.81 > 6 (EBIT TTM 165.9m / Interest Expense TTM 59.0m) |
| A: -0.05 (Total Current Assets 565.7m - Total Current Liabilities 635.4m) / Total Assets 1.42b |
| B: -1.19 (Retained Earnings -1.69b / Total Assets 1.42b) |
| C: 0.11 (EBIT TTM 165.9m / Avg Total Assets 1.53b) |
| D: -0.30 (Book Value of Equity -609.3m / Total Liabilities 2.03b) |
| Altman-Z'' = -3.78 = D |
| DSRI: 0.91 (Receivables 362.5m/381.1m, Revenue 2.55b/2.43b) |
| GMI: 0.98 (GM 70.54% / 71.62%) |
| AQI: 1.14 (AQ_t 0.44 / AQ_t-1 0.39) |
| SGI: 1.05 (Revenue 2.55b / 2.43b) |
| TATA: -0.39 (NI 84.3m - CFO 638.4m) / TA 1.42b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of June 07, 2026, the stock is trading at USD 42.29 with a total of 1,204,302 shares traded.
Over the past week, the price has changed by -2.21%,
over one month by -11.30%,
over three months by +6.96% and
over the past year by +58.32%.
Ringcentral has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold RNG.
- StrongBuy: 6
- Buy: 2
- Hold: 11
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 45.4 | 7.4% |
P/E Trailing = 46.7766
P/E Forward = 9.9206
P/S = 1.4475
P/B = 96.6823
P/EG = 0.2718
Revenue TTM = 2.55b USD
EBIT TTM = 165.9m USD
EBITDA TTM = 390.4m USD
Long Term Debt = 1.16b USD (from longTermDebt, last quarter)
Short Term Debt = 46.3m USD (from shortTermDebt, last quarter)
Debt = 1.48b USD (from shortLongTermDebtTotal, last quarter) + Leases 48.5m
Net Debt = 1.36b USD (calculated: Debt 1.48b - CCE 116.6m)
Enterprise Value = 5.05b USD (3.69b + Debt 1.48b - CCE 116.6m)
Interest Coverage Ratio = 2.81 (Ebit TTM 165.9m / Interest Expense TTM 59.0m)
EV/FCF = 7.61x (Enterprise Value 5.05b / FCF TTM 663.5m)
FCF Yield = 13.14% (FCF TTM 663.5m / Enterprise Value 5.05b)
FCF Margin = 26.05% (FCF TTM 663.5m / Revenue TTM 2.55b)
Net Margin = 3.31% (Net Income TTM 84.3m / Revenue TTM 2.55b)
Gross Margin = 71.62% ((Revenue TTM 2.55b - Cost of Revenue TTM 723.0m) / Revenue TTM)
Gross Margin QoQ = 72.15% (prev 71.39%)
Tobins Q-Ratio = 3.55 (Enterprise Value 5.05b / Total Assets 1.42b)
Interest Expense / Debt = 3.98% (Interest Expense 59.0m / Debt 1.48b)
Taxrate = 10.96% (10.4m / 94.7m)
NOPAT = 147.7m (EBIT 165.9m * (1 - 10.96%))
Current Ratio = 0.89 (Total Current Assets 565.7m / Total Current Liabilities 635.4m)
Debt / Equity = -2.43 (negative equity) (Debt 1.48b / totalStockholderEquity, last quarter -609.3m)
Debt / EBITDA = 3.49 (Net Debt 1.36b / EBITDA 390.4m)
Debt / FCF = 2.06 (Net Debt 1.36b / FCF TTM 663.5m)
Total Stockholder Equity = -504.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.52% (Net Income 84.3m / Total Assets 1.42b)
RoE = -16.71% (negative equity) (Net Income TTM 84.3m / Total Stockholder Equity -504.6m)
RoCE = 25.34% (EBIT 165.9m / Capital Employed (Equity -504.6m + L.T.Debt 1.16b))
RoIC = 20.64% (NOPAT 147.7m / Invested Capital 715.9m)
WACC = 8.49% (E(3.69b)/V(5.17b) * Re(10.47%) + D(1.48b)/V(5.17b) * Rd(3.98%) * (1-Tc(0.11)))
Discount Rate = 10.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -3.39%
[DCF] Terminal Value 77.53% ; FCFF base≈579.6m ; Y1≈664.4m ; Y5≈977.8m
[DCF] Fair Price = 175.6 (EV 14.4b - Net Debt 1.36b = Equity 13.0b / Shares 74.1m; r=8.49% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -6.79 | EPS CAGR: -1.05% | SUE: 4.0 | # QB: 1
Revenue Correlation: 98.85 | Revenue CAGR: 7.13% | SUE: 0.70 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.17 | Chg30d=+0.16% | Revisions=-11% | Analysts=15
EPS next Quarter (2026-09-30): EPS=1.25 | Chg30d=+1.14% | Revisions=+20% | Analysts=15
EPS current Year (2026-12-31): EPS=4.93 | Chg30d=+1.66% | Revisions=+68% | GrowthEPS=+13.2% | GrowthRev=+4.6%
EPS next Year (2027-12-31): EPS=5.38 | Chg30d=-0.33% | Revisions=+17% | GrowthEPS=+9.1% | GrowthRev=+4.5%
[Analyst] Revisions Ratio: +68%