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Rackspace Technology Inc
NASDAQ:RXT

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Rackspace Technology Inc Logo
Rackspace Technology Inc
NASDAQ:RXT
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Price: 1.58 USD 6.76% Market Closed
Updated: Mar 28, 2024

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%.

Key Points:
RXT Intrinsic Value
Base Case
9.94 USD
Undervaluation 84%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Rackspace Technology Inc

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Fundamental Analysis

Rackspace's Structural Revamp Poised for 2024 Growth
2023-Q4 Earnings Call

Rackspace's Structural Revamp Poised for 2024 Growth

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Fundamental Scores

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.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
Negative 1-Year Revenue Growth
32/100
Profitability
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.

Low D/E
Long-Term Solvency
Short-Term Solvency
Positive Net Debt
28/100
Solvency
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

Wall Street analysts forecast RXT stock price to rise over the next 12 months.

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.

Lowest
Price Target
1.01 USD
36% Downside
Average
Price Target
2.3 USD
45% Upside
Highest
Price Target
3.68 USD
133% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

RXT Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

RXT Price
Rackspace Technology Inc

1M 1M
-21%
6M 6M
-31%
1Y 1Y
-10%
3Y 3Y
-93%
5Y 5Y
-90%
10Y 10Y
-90%
Annual Price Range
1.58
52w Low
1.08
52w High
2.89
Price Metrics
Average Annual Return -29.96%
Standard Deviation of Annual Returns 47.8%
Max Drawdown -96%
Shares Statistics
Market Capitalization 343.5m USD
Shares Outstanding 212 600 000
Percentage of Shares Shorted 8.83%

RXT Return Decomposition
Main factors of price return

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RXT News

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Company Profile

Rackspace Technology Inc Logo
Rackspace Technology Inc

Country

United States of America

Industry

Technology

Market Cap

343.5m USD

Dividend Yield

0%

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

TEXAS
San Antonio
1 Fanatical Place, City Of Windcrest
+12103124000.0
https://www.rackspace.com/

IPO

2020-08-05

Employees

6 600

Officers

President, CEO & Director
Mr. Amar Maletira
Executive VP and President of Technology & Sustainability
Mr. Srinivas Koushik
Executive VP & President of Public Cloud Business Unit
Mr. Dharmendra Kumar Sinha
Chief Financial Officer
Mr. Mark A. Marino
Vice President of Corporate Finance
Robert Watson
Head of Investor Relations
Sagar Hebbar
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Chief Legal Officer, Senior VP & Corporate Secretary
Mr. Michael Bross
Chief Marketing Officer
Ms. Kathleen Schneider
Chief Human Resources Officer
Ms. Kellie Teal-Guess
Show Less

See Also

Discover More
What is the Intrinsic Value of one RXT stock?

The intrinsic value of one RXT stock under the Base Case scenario is 9.94 USD.

Is RXT stock undervalued or overvalued?

Compared to the current market price of 1.58 USD, Rackspace Technology Inc is Undervalued by 84%.