Rackspace Technology Inc
NASDAQ:RXT
Intrinsic Value
Rackspace Technology, Inc. engages in the provision of end-to-end multi-cloud technology services. [ Read More ]
The intrinsic value of one RXT stock under the Base Case scenario is 9.94 USD. Compared to the current market price of 1.58 USD, Rackspace Technology Inc is Undervalued by 84%.
Valuation Backtest
Rackspace Technology Inc
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Fundamental Analysis
Rackspace's Structural Revamp Poised for 2024 Growth
2023-Q4 Earnings Call
Rackspace has undertaken a significant operational overhaul in 2023, which included setting a new strategy, updating its business unit structure, and refreshing leadership. The company is positioning itself as a leader in hybrid multi-cloud and AI services. To solidify its financial foundation, Rackspace undertook a private debt exchange, reducing total debt by over $800 million, and projects $330 million cash on hand, thereby enhancing liquidity to over $700 million. In the fourth quarter of 2023, private cloud bookings surged by 86% sequentially and 96% year-over-year, indicating a strong turnaround expected in the second half of 2024. Despite a tough transition in public cloud services, with substantial workforce renewal, fourth-quarter services bookings rose 13% sequentially. The management remains optimistic, projecting growth in services in the latter half of 2024 as new strategies begin to yield results.
Balance Sheet Decomposition
Rackspace Technology Inc
Current Assets | 738.1m |
Cash & Short-Term Investments | 196.8m |
Receivables | 350.4m |
Other Current Assets | 190.9m |
Non-Current Assets | 3.4B |
PP&E | 735.1m |
Intangibles | 2.5B |
Other Non-Current Assets | 151.6m |
Current Liabilities | 799.5m |
Accounts Payable | 432.7m |
Accrued Liabilities | 158.7m |
Other Current Liabilities | 208.1m |
Non-Current Liabilities | 3.5B |
Long-Term Debt | 3.2B |
Other Non-Current Liabilities | 251.2m |
Earnings Waterfall
Rackspace Technology Inc
Revenue
|
3B
USD
|
Cost of Revenue
|
-2.3B
USD
|
Gross Profit
|
628.8m
USD
|
Operating Expenses
|
-767.2m
USD
|
Operating Income
|
-138.4m
USD
|
Other Expenses
|
-699.4m
USD
|
Net Income
|
-837.8m
USD
|
Free Cash Flow Analysis
Rackspace Technology Inc
What is Free Cash Flow?
RXT Profitability Score
Profitability Due Diligence
Rackspace Technology Inc's profitability score is 32/100. The higher the profitability score, the more profitable the company is.
Score
Rackspace Technology Inc's profitability score is 32/100. The higher the profitability score, the more profitable the company is.
RXT Solvency Score
Solvency Due Diligence
Rackspace Technology Inc's solvency score is 28/100. The higher the solvency score, the more solvent the company is.
Score
Rackspace Technology Inc's solvency score is 28/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
RXT Price Targets Summary
Rackspace Technology Inc
According to Wall Street analysts, the average 1-year price target for RXT is 2.3 USD with a low forecast of 1.01 USD and a high forecast of 3.68 USD.
Ownership
RXT Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
RXT Price
Rackspace Technology Inc
Average Annual Return | -29.96% |
Standard Deviation of Annual Returns | 47.8% |
Max Drawdown | -96% |
Market Capitalization | 343.5m USD |
Shares Outstanding | 212 600 000 |
Percentage of Shares Shorted | 8.83% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Rackspace Technology, Inc. engages in the provision of end-to-end multi-cloud technology services. The company is headquartered in San Antonio, Texas and currently employs 6,600 full-time employees. The company went IPO on 2020-08-05. The firm designs, builds and operates cloud environments across technology platforms. The firm operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. Its Multicloud Services segment includes its multicloud services offerings, as well as professional services related to designing and building multicloud solutions and cloud-native applications. Its Apps & Cross Platform segment includes managed applications, managed security and data services, as well as professional services related to designing and implementing application, security and data services. Its OpenStack Public Cloud segment enables to run applications on a public cloud that is built on open-source technology. The company also enables public cloud and managed hosting platforms to work, through technologies such as RackConnect tool.
Contact
IPO
Employees
Officers
The intrinsic value of one RXT stock under the Base Case scenario is 9.94 USD.
Compared to the current market price of 1.58 USD, Rackspace Technology Inc is Undervalued by 84%.