Rackspace Technology, Inc. (RXT) is a Software - Infrastructure company in the Technology sector, currently trading at $1.24. It has a SharesGrow Score of 34/100, indicating a weak investment profile with 1 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of RXT = $487.06 (+39179% from the current price, the stock appears undervalued). Analyst consensus target is RXT = $3 (+168.5% upside).
Valuation: RXT trades at a trailing Price-to-Earnings (P/E) of -1 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.01.
Financials: revenue is $2.7B, -4.9%/yr average growth. Net income is $226M (loss), growing at +22.4%/yr. Net profit margin is -8.4% (negative). Gross margin is 18.9% (-8.5 pp trend).
Balance sheet: total debt is $3.3B with negative equity of -$1.2B — 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 0.68 (tight liquidity). Debt-to-assets is 117.3%. Total assets: $2.8B.
Analyst outlook: 2 / 13 analysts rate RXT as buy (15%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 58/100 (Partial), Past 0/100 (Fail), Health 0/100 (Fail), Moat 19/100 (Fail), Future 52/100 (Partial), Income 10/100 (Fail).
