RingCentral, Inc. (RNG) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E below the industry

RingCentral's P/E of 10.0 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.3.

EV/EBITDA above its 5-year median

RingCentral's EV/EBITDA of 17.3 is above its 5-year median of 16.8.

P/S below the industry

RingCentral's price-to-sales of 2.45 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 2.79 (book value is negative, so we use sales).

Trading below fair value

The share price of $75.89 is below our fair value estimate of $128.46.

Margin of safety over 20%

The price is 40.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

RingCentral raised its full year 2026 total revenue outlook on Oct 22, 2026.

Gross margin improving

Gross margin was 72.2% over the last twelve months, against 71.1% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 26.8%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 25.3% over the last twelve months, against a 5-year average of -15.2%.

Net margin above the industry

RingCentral's net margin of 25.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 69.2% of total debt.

Interest not well covered

Operating income covers interest expense 3.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.06 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

RingCentral paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; RingCentral yields 0.4%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.