Fact based stock research
RingCentral (NYSE:RNG)

US76680R2067

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

RingCentral stock research in summary

ringcentral.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), RingCentral (Application Software, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of RingCentral are a good value (attractively priced) with a consolidated Value Rank of 52 (better than 52% of alternatives) but show below-average growth (Growth Rank of 47), and are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on RingCentral's financial characteristics. As the company RingCentral's key financial metrics exhibit good value (Obermatt Value Rank of 52) but low growth (Obermatt Growth Rank of 47) and risky financing practices (Obermatt Safety Rank of 28), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 52% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	52
Growth Rank	47
Safety Rank	28
Combined Rank	29

Country	USA
Industry	Application Software
Index	SDG 12, SDG 15, SDG 3, SDG 5, D.J. US Telecom
Size class	Large

This stock has achievements: Top 10 Stock.

27-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: RingCentral

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	17	94	94	52
GROWTH
GROWTH	63	47	35	47
SAFETY
SAFETY	19	23	7	28
SENTIMENT
SENTIMENT	49	18	54	^new
360° VIEW
360° VIEW	17	28	39	^new

Most recent update of the stock research: 27-Feb-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better RingCentral is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	17	94	94	52
GROWTH
GROWTH	63	47	35	47
SAFETY
SAFETY	19	23	7	28
COMBINED
COMBINED	10	59	36	29

Last update of combined financial performance: 27-Feb-2025. Stock analysis on combined financial performance: The higher the rank of RingCentral the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 52 (better than 52% compared with alternatives), RingCentral shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for RingCentral. Price-to-Sales (P/S) is 81, which means that the stock price compared with what market professionals expect for future sales is lower than for 81% of comparable companies, indicating a good value concerning RingCentral's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 92% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 99% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for RingCentral to 1. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 52, is a buy recommendation based on RingCentral's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	42	85	81	81
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31	94	92	92
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	97	97	1
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	17	94	94	52

Last update of Value Rank: 27-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of RingCentral; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), RingCentral shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for RingCentral. Profit Growth, with a rank of 51 (better than 51% of its competitors), and Capital Growth, with a rank of 64, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 30, which means that, currently, professionals expect the company to grow less than 70% of its competitors, and Stock Returns are at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	68	35	37	30
PROFIT GROWTH
PROFIT GROWTH	60	67	43	51
CAPITAL GROWTH
CAPITAL GROWTH	78	74	45	64
STOCK RETURNS
STOCK RETURNS	17	31	55	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	63	47	35	47

Last update of Growth Rank: 27-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of RingCentral.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company RingCentral has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of RingCentral is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for RingCentral. Refinancing is at 59, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Liquidity is also good at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 1, which means the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), RingCentral has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and RingCentral could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with RingCentral and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	13	3	1	1
REFINANCING
REFINANCING	29	75	38	59
LIQUIDITY
LIQUIDITY	45	15	28	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	19	23	7	28

Last update of Safety Rank: 27-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of RingCentral and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	25	24	^new
OPINIONS CHANGE
OPINIONS CHANGE	52	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	13	48	86	^new
MARKET PULSE
MARKET PULSE	78	31	47	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	49	18	54	^new

Last update of Sentiment Rank: 27-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for RingCentral.
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