Rapid7, Inc. (RPD) stock analysis
Close on Nov 12, 2026Market cap $970.57MP/E 68.6Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak5 of 30 checks passed
Rapid7 passes 5 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 0/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $14.78 is below our fair value estimate of $16.09.
Guidance raised
Rapid7 raised its Full-Year 2026 Non-GAAP income from operations outlook on Aug 10, 2026.
Return on equity above the industry
Rapid7's return on equity of 8.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Net margin above its 5-year average
Net margin was 1.6% over the last twelve months, against a 5-year average of -11.9%.
What to watch
Margin of safety under 20%
The price is 8.2% below fair value, less than the 20% cushion we look for.
Revenue growing under 10% a year
Revenue grew 7.9% a year over the last three fiscal years, short of the 10% we look for.
Interest not well covered
Operating income covers interest expense 1.3 times; we look for at least 5.
Elevated bankruptcy risk
The Altman Z-score is 0.01; above 3 is the safe zone and below 1.8 the distress zone.
Valuation1/6
P/E above its 5-year median
Rapid7's P/E of 70.4 is above its own 5-year median of 47.0.
P/E above the industry
Rapid7's P/E of 70.4 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Rapid7's price-to-book of 4.51 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $14.78 is below our fair value estimate of $16.09.
Margin of safety under 20%
The price is 8.2% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 7.9% 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 -1.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Rapid7 raised its Full-Year 2026 Non-GAAP income from operations outlook on Aug 10, 2026.
Gross margin slipping
Gross margin was 69.1% over the last twelve months, against 70.5% a year earlier.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Rapid7's return on equity of 8.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
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 1.6% over the last twelve months, against a 5-year average of -11.9%.
Net margin above the industry
Rapid7's net margin of 1.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health0/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest not well covered
Operating income covers interest expense 1.3 times; we look for at least 5.
Short-term assets don't cover short-term debts
Current assets are 0.83 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 0.01; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Rapid7 has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$16.09
The share price is 8% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 37.3× | 47.0× | 27.6× | $7.84 | 40% |
| EV/EBITDA | 18.8× | – | 18.8× | $26.97 | 35% |
| P/B | 3.3× | – | 3.3× | $10.88 | 10% |
| Earnings power | 12.7% cost of equity | – | – | $16.18 | 15% |
| Fair value | $16.09 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 47.0
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $28.55M
- Value traded per 1% price move
- $6.67M
Downside
High risk
- Typical loss in a bad month
- 48.4%
- Volatility (annualized)
- 81%
- Sharpe ratio, 1 year
- 0.01
- Beta to the S&P 500 (5Y)
- 1.56
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +1.9% | +7.9% | +15.9% | +22.8% | |
| Gross profit | +2.0% | +8.7% | +15.8% | +22.2% | |
| Operating income | -67.0% | – | – | – | |
| Net income | -8.4% | – | – | – | |
| EPS, diluted | -10.0% | – | – | – | |
| Free cash flow | -13.1% | +36.2% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -89.0% | -127.8% | 27.1% | |
| Return on assets | -20.7% | -12.5% | 1.4% | |
| Current ratio | 0.89 | 1.34 | 1.28 | |
| Interest coverage | -232.5× | -3.1× | 1.1× | |
| Capex to revenue | 2.9% | 3.4% | 0.9% | |
| Diluted shares | 41M | 51M | 65M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Rapid7 generated $561.90M from operations and spent $44.78M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 2.7% | 0.51× | 19.59× | 27.1% |
| FY2024 | 3.0% | 0.53× | -31.43× | -50.8% |
| FY2023 | -19.6% | 0.54× | -12.02× | 128.3% |
| FY2022 | -18.2% | 0.52× | -10.79× | 101.4% |
| FY2021 | -27.3% | 0.48× | -40.57× | 537.4% |
| FY2020 | -24.0% | 0.52× | 10.20× | -127.8% |
| FY2019 | -16.5% | 0.53× | 7.18× | -63.2% |
| FY2018 | -22.8% | 0.58× | 7.57× | -99.7% |
| FY2017 | -22.6% | 0.76× | 7.97× | -137.4% |
| FY2016 | -31.1% | 0.66× | 4.30× | -89.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$23.38M
- Cash generatingOperating cash flow above zero$153.83M
- Return on assets improvedROA up on the prior year1.7% → 1.4%
- Earnings backed by cashOperating cash flow above net income$153.83M vs $23.38M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.25 → 1.28
- No dilutionShare count did not rise63M → 65M
- Gross margin improvedGross margin up on the prior year70.26% → 70.34%
- More efficientAsset turnover rose0.56 → 0.52
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