RingCentral, Inc. (RNG) is a Software - Application company in the Technology sector, currently trading at $37.17. It has a SharesGrow Score of 44/100, indicating a mixed investment profile with 2 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of RNG = $18.63 (-49.9% from the current price, the stock appears overvalued). Analyst consensus target is RNG = $38 (+1.3% upside).
Valuation: RNG trades at a trailing Price-to-Earnings (P/E) of 72 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 6.3.
Financials: revenue is $2.5B, +8.2%/yr average growth. Net income is $43M, growing at +106.8%/yr. Net profit margin is 1.7% (thin). Gross margin is 71.2% (+3.5 pp trend).
Balance sheet: total debt is $1.5B with negative equity of -$588M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.49 (tight liquidity). Debt-to-assets is 100%. Total assets: $1.5B.
Analyst outlook: 28 / 42 analysts rate RNG as buy (67%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 39/100 (Fail), Growth 83/100 (Pass), Past 25/100 (Fail), Health 0/100 (Fail), Moat 74/100 (Pass), Future 55/100 (Partial), Income 30/100 (Fail).
