Rackspace Technology Stock Return On Equity

RXT Stock

USD 2.38 0.06 2.59%

Rackspace Technology fundamentals help investors to digest information that contributes to Rackspace Technology's financial success or failures. It also enables traders to predict the movement of Rackspace Stock. The fundamental analysis module provides a way to measure Rackspace Technology's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Rackspace Technology stock.

		Last Reported	Projected for Next Year
	Return On Equity	5.42	5.69

Return On Equity is likely to gain to 5.69 in 2024.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Rackspace Technology Company Return On Equity Analysis

Rackspace Technology's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Rackspace Technology Return On Equity

-3.53

Most of Rackspace Technology's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Rackspace Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Rackspace Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Rackspace Technology is extremely important. It helps to project a fair market value of Rackspace Stock properly, considering its historical fundamentals such as Return On Equity. Since Rackspace Technology's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Rackspace Technology's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Rackspace Technology's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Tangible Assets	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Long Term Debt	Net Receivables	Good Will	Total Liab	Net Invested Capital	Short Long Term Debt	Total Current Assets	Capital Stock	Net Working Capital	Short Term Debt	Intangible Assets	Common Stock	Property Plant Equipment	Deferred Long Term Liab	Capital Surpluse	Short Term Investments
Total Assets		0.95	-0.25	-0.4	0.9	0.93	-0.71	0.78	-0.26	0.97	0.91	0.97	0.7	-0.35	-0.76	0.3	-0.36	0.81	-0.76	0.91	-0.86	-0.95	-0.9
Total Stockholder Equity	0.95		0.0	-0.21	0.8	0.83	-0.55	0.63	-0.09	0.93	0.83	0.87	0.65	-0.18	-0.55	0.4	-0.16	0.65	-0.55	0.89	-0.72	-0.84	-0.81
Net Tangible Assets	-0.25	0.0		0.83	-0.5	-0.53	0.8	-0.66	0.89	-0.2	-0.42	-0.43	-0.43	0.93	0.78	0.56	0.8	-0.71	0.78	-0.27	0.58	0.45	0.53
Current Deferred Revenue	-0.4	-0.21	0.83		-0.68	-0.68	0.85	-0.84	0.9	-0.26	-0.63	-0.58	-0.65	0.86	0.84	0.14	0.95	-0.83	0.84	-0.25	0.54	0.62	0.54
Net Debt	0.9	0.8	-0.5	-0.68		0.97	-0.81	0.94	-0.55	0.82	0.99	0.92	0.7	-0.63	-0.86	0.12	-0.62	0.9	-0.86	0.79	-0.78	-0.92	-0.85
Retained Earnings	0.93	0.83	-0.53	-0.68	0.97		-0.89	0.94	-0.59	0.86	0.95	0.98	0.76	-0.64	-0.91	0.15	-0.65	0.96	-0.91	0.82	-0.9	-0.96	-0.94
Accounts Payable	-0.71	-0.55	0.8	0.85	-0.81	-0.89		-0.88	0.82	-0.64	-0.76	-0.84	-0.81	0.86	0.95	0.16	0.8	-0.97	0.95	-0.67	0.89	0.85	0.89
Long Term Debt	0.78	0.63	-0.66	-0.84	0.94	0.94	-0.88		-0.73	0.66	0.93	0.88	0.65	-0.71	-0.94	0.14	-0.85	0.96	-0.94	0.6	-0.78	-0.88	-0.8
Net Receivables	-0.26	-0.09	0.89	0.9	-0.55	-0.59	0.82	-0.73		-0.14	-0.49	-0.45	-0.51	0.93	0.74	0.33	0.9	-0.75	0.74	-0.21	0.52	0.44	0.55
Good Will	0.97	0.93	-0.2	-0.26	0.82	0.86	-0.64	0.66	-0.14		0.82	0.92	0.65	-0.29	-0.68	0.19	-0.2	0.72	-0.68	0.96	-0.85	-0.9	-0.87
Total Liab	0.91	0.83	-0.42	-0.63	0.99	0.95	-0.76	0.93	-0.49	0.82		0.91	0.63	-0.54	-0.82	0.23	-0.59	0.87	-0.82	0.77	-0.75	-0.9	-0.82
Net Invested Capital	0.97	0.87	-0.43	-0.58	0.92	0.98	-0.84	0.88	-0.45	0.92	0.91		0.74	-0.5	-0.89	0.25	-0.56	0.92	-0.89	0.85	-0.93	-0.99	-0.93
Short Long Term Debt	0.7	0.65	-0.43	-0.65	0.7	0.76	-0.81	0.65	-0.51	0.65	0.63	0.74		-0.61	-0.68	-0.03	-0.46	0.77	-0.68	0.7	-0.7	-0.79	-0.75
Total Current Assets	-0.35	-0.18	0.93	0.86	-0.63	-0.64	0.86	-0.71	0.93	-0.29	-0.54	-0.5	-0.61		0.76	0.54	0.77	-0.77	0.76	-0.41	0.58	0.51	0.63
Capital Stock	-0.76	-0.55	0.78	0.84	-0.86	-0.91	0.95	-0.94	0.74	-0.68	-0.82	-0.89	-0.68	0.76		0.03	0.83	-0.98	1.0	-0.64	0.89	0.9	0.84
Net Working Capital	0.3	0.4	0.56	0.14	0.12	0.15	0.16	0.14	0.33	0.19	0.23	0.25	-0.03	0.54	0.03		0.0	0.02	0.03	-0.03	0.0	-0.21	0.0
Short Term Debt	-0.36	-0.16	0.8	0.95	-0.62	-0.65	0.8	-0.85	0.9	-0.2	-0.59	-0.56	-0.46	0.77	0.83	0.0		-0.81	0.83	-0.15	0.54	0.57	0.51
Intangible Assets	0.81	0.65	-0.71	-0.83	0.9	0.96	-0.97	0.96	-0.75	0.72	0.87	0.92	0.77	-0.77	-0.98	0.02	-0.81		-0.98	0.7	-0.9	-0.92	-0.9
Common Stock	-0.76	-0.55	0.78	0.84	-0.86	-0.91	0.95	-0.94	0.74	-0.68	-0.82	-0.89	-0.68	0.76	1.0	0.03	0.83	-0.98		-0.64	0.89	0.9	0.84
Property Plant Equipment	0.91	0.89	-0.27	-0.25	0.79	0.82	-0.67	0.6	-0.21	0.96	0.77	0.85	0.7	-0.41	-0.64	-0.03	-0.15	0.7	-0.64		-0.83	-0.83	-0.89
Deferred Long Term Liab	-0.86	-0.72	0.58	0.54	-0.78	-0.9	0.89	-0.78	0.52	-0.85	-0.75	-0.93	-0.7	0.58	0.89	0.0	0.54	-0.9	0.89	-0.83		0.91	0.96
Capital Surpluse	-0.95	-0.84	0.45	0.62	-0.92	-0.96	0.85	-0.88	0.44	-0.9	-0.9	-0.99	-0.79	0.51	0.9	-0.21	0.57	-0.92	0.9	-0.83	0.91		0.9
Short Term Investments	-0.9	-0.81	0.53	0.54	-0.85	-0.94	0.89	-0.8	0.55	-0.87	-0.82	-0.93	-0.75	0.63	0.84	0.0	0.51	-0.9	0.84	-0.89	0.96	0.9

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

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Return On Equity Over Time

Rackspace Total Stockholder Equity

Total Stockholder Equity

(146.78 Million)

At this time, Rackspace Technology's Total Stockholder Equity is comparatively stable compared to the past year.

Based on the latest financial disclosure, Rackspace Technology has a Return On Equity of -3.5276. This is 70.68% lower than that of the Software sector and significantly lower than that of the Information Technology industry. The return on equity for all United States stocks is notably higher than that of the company.

Rackspace Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Rackspace Technology's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Rackspace Technology could also be used in its relative valuation, which is a method of valuing Rackspace Technology by comparing valuation metrics of similar companies.

Rackspace Technology is currently under evaluation in return on equity category among its peers.

Rackspace Technology ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Rackspace Technology's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Rackspace Technology's managers, analysts, and investors.

Environmental

Governance

Social

Rackspace Fundamentals

	Return On Equity	-3.53
	Return On Asset	-0.0178
	Profit Margin	(0.28) %
	Operating Margin	(0.03) %
	Current Valuation	3.68 B
	Shares Outstanding	227.57 M
	Shares Owned By Insiders	2.86 %
	Shares Owned By Institutions	84.56 %
	Number Of Shares Shorted	5.31 M
	Price To Book	0.81 X
	Price To Sales	0.19 X
	Revenue	2.96 B
	Gross Profit	867.8 M
	EBITDA	(149.9 M)
	Net Income	(837.8 M)
	Cash And Equivalents	283.6 M
	Cash Per Share	1.35 X
	Total Debt	3.43 B
	Debt To Equity	3.09 %
	Current Ratio	1.23 X
	Book Value Per Share	(4.17) X
	Cash Flow From Operations	374.9 M
	Short Ratio	11.07 X
	Earnings Per Share	(3.45) X
	Price To Earnings To Growth	3.86 X
	Target Price	2.89
	Number Of Employees	5.8 K
	Beta	1.98
	Market Capitalization	527.96 M
	Total Asset	4.1 B
	Retained Earnings	(2.82 B)
	Working Capital	(61.4 M)
	Net Asset	4.1 B

About Rackspace Technology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Rackspace Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rackspace Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rackspace Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Rackspace Stock Analysis

When running Rackspace Technology's price analysis, check to measure Rackspace Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rackspace Technology is operating at the current time. Most of Rackspace Technology's value examination focuses on studying past and present price action to predict the probability of Rackspace Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rackspace Technology's price. Additionally, you may evaluate how the addition of Rackspace Technology to your portfolios can decrease your overall portfolio volatility.

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