Is Ribbon Communications Stock a Good Investment?
Ribbon Communications Investment Advice | RBBN |
- Examine Ribbon Communications' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ribbon Communications' leadership team and their track record. Good management can help Ribbon Communications navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Ribbon Communications' business and its evolving consumer preferences.
- Compare Ribbon Communications' performance and market position to its competitors. Analyze how Ribbon Communications is positioned in terms of product offerings, innovation, and market share.
- Check if Ribbon Communications pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ribbon Communications' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ribbon Communications stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ribbon Communications is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Ribbon Communications Stock
Researching Ribbon Communications' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 18.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.73. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Ribbon Communications has Price/Earnings To Growth (PEG) ratio of 1.79. The entity recorded a loss per share of 0.31. The firm had not issued any dividends in recent years. Ribbon Communications had 1:5 split on the 30th of January 2015.
To determine if Ribbon Communications is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ribbon Communications' research are outlined below:
| The company reported the previous year's revenue of 826.34 M. Net Loss for the year was (66.21 M) with profit before overhead, payroll, taxes, and interest of 432.48 M. | |
| Ribbon Communications has a frail financial position based on the latest SEC disclosures | |
| About 73.0% of the company shares are owned by institutional investors | |
| Latest headline from kalkinemedia.com: Ribbon Strengthens Commitment to Thai Market with Expanded Manufacturing |
Ribbon Communications Quarterly Liabilities And Stockholders Equity |
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Ribbon Communications uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ribbon Communications. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ribbon Communications' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Ribbon Communications' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ribbon Communications' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2008-08-11 | 2008-06-30 | 0.01 | 0.0023 | -0.0077 | 77 | ||
2024-10-23 | 2024-09-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2021-04-28 | 2021-03-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2020-08-05 | 2020-06-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2012-02-21 | 2011-12-31 | 0.06 | 0.05 | -0.01 | 16 | ||
2004-08-20 | 2004-06-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2010-08-03 | 2010-06-30 | -0.01 | 0.0056 | 0.0156 | 156 | ||
2024-04-24 | 2024-03-31 | 0.0067 | -0.01 | -0.0167 | 249 |
Know Ribbon Communications' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ribbon Communications is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ribbon Communications backward and forwards among themselves. Ribbon Communications' institutional investor refers to the entity that pools money to purchase Ribbon Communications' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | First Wilshire Securities Mgmt Inc (ca) | 2024-09-30 | 1.2 M | Brandes Investment Partners & Co | 2024-09-30 | 808.8 K | Northern Trust Corp | 2024-09-30 | 771.7 K | Charles Schwab Investment Management Inc | 2024-09-30 | 762.9 K | Arrowstreet Capital Limited Partnership | 2024-06-30 | 725.3 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 562.1 K | Victory Capital Management Inc. | 2024-09-30 | 504.5 K | Bank Of New York Mellon Corp | 2024-06-30 | 434.2 K | Federated Hermes Inc | 2024-09-30 | 433.2 K | Jpmorgan Chase & Co | 2024-06-30 | 52 M | Neuberger Berman Group Llc | 2024-06-30 | 17.8 M |
Ribbon Communications' market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 684 M.Market Cap |
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Ribbon Communications' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.11) | (0.11) | |
| Return On Assets | (0.06) | (0.06) | |
| Return On Equity | (0.15) | (0.15) |
Determining Ribbon Communications' profitability involves analyzing its financial statements and using various financial metrics to determine if Ribbon Communications is a good buy. For example, gross profit margin measures Ribbon Communications' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ribbon Communications' profitability and make more informed investment decisions.
Ribbon Communications' Earnings Breakdown by Geography
Evaluate Ribbon Communications' management efficiency
As of the 25th of November 2024, Return On Tangible Assets is likely to drop to -0.11. In addition to that, Return On Capital Employed is likely to drop to -0.0047. At this time, Ribbon Communications' Fixed Asset Turnover is very stable compared to the past year. Ribbon Communications' management efficiency ratios could be used to measure how well Ribbon Communications manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.66 | 4.24 | |
| Tangible Book Value Per Share | (0.51) | (0.48) | |
| Enterprise Value Over EBITDA | 105.06 | 110.31 | |
| Price Book Value Ratio | 1.09 | 1.15 | |
| Enterprise Value Multiple | 105.06 | 110.31 | |
| Price Fair Value | 1.09 | 1.15 | |
| Enterprise Value | 616.1 M | 882.5 M |
Ribbon Communications' management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.086 |
Basic technical analysis of Ribbon Stock
As of the 25th of November, Ribbon Communications holds the Coefficient Of Variation of 877.28, risk adjusted performance of 0.0947, and Semi Deviation of 2.34. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Ribbon Communications, as well as the relationship between them.Ribbon Communications' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ribbon Communications insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ribbon Communications' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ribbon Communications insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ribbon Communications' Outstanding Corporate Bonds
Ribbon Communications issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ribbon Communications uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ribbon bonds can be classified according to their maturity, which is the date when Ribbon Communications has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Ribbon Communications' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ribbon Communications' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0947 | |||
| Market Risk Adjusted Performance | 0.147 | |||
| Mean Deviation | 2.17 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.56 | |||
| Coefficient Of Variation | 877.28 | |||
| Standard Deviation | 2.86 | |||
| Variance | 8.19 | |||
| Information Ratio | 0.0683 | |||
| Jensen Alpha | 0.0375 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0764 | |||
| Treynor Ratio | 0.137 | |||
| Maximum Drawdown | 13.44 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 4.79 | |||
| Downside Variance | 6.54 | |||
| Semi Variance | 5.48 | |||
| Expected Short fall | (2.63) | |||
| Skewness | 0.0554 | |||
| Kurtosis | 1.14 |
| Risk Adjusted Performance | 0.0947 | |||
| Market Risk Adjusted Performance | 0.147 | |||
| Mean Deviation | 2.17 | |||
| Semi Deviation | 2.34 | |||
| Downside Deviation | 2.56 | |||
| Coefficient Of Variation | 877.28 | |||
| Standard Deviation | 2.86 | |||
| Variance | 8.19 | |||
| Information Ratio | 0.0683 | |||
| Jensen Alpha | 0.0375 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0764 | |||
| Treynor Ratio | 0.137 | |||
| Maximum Drawdown | 13.44 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 4.79 | |||
| Downside Variance | 6.54 | |||
| Semi Variance | 5.48 | |||
| Expected Short fall | (2.63) | |||
| Skewness | 0.0554 | |||
| Kurtosis | 1.14 |
Consider Ribbon Communications' intraday indicators
Ribbon Communications intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ribbon Communications stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ribbon Communications Corporate Filings
F3 | 4th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 28th of October 2024 Other Reports | ViewVerify | |
10Q | 24th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Ribbon Stock media impact
Far too much social signal, news, headlines, and media speculation about Ribbon Communications that are available to investors today. That information is available publicly through Ribbon media outlets and privately through word of mouth or via Ribbon internal channels. However, regardless of the origin, that massive amount of Ribbon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ribbon Communications news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ribbon Communications relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ribbon Communications' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ribbon Communications alpha.
Ribbon Communications Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ribbon Communications can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ribbon Communications Corporate Executives
Elected by the shareholders, the Ribbon Communications' board of directors comprises two types of representatives: Ribbon Communications inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Ribbon. The board's role is to monitor Ribbon Communications' management team and ensure that shareholders' interests are well served. Ribbon Communications' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Ribbon Communications' outside directors are responsible for providing unbiased perspectives on the board's policies.
| Miguel Ben | Executive CFO | Profile | |
| John Townsend | Executive CFO | Profile | |
| Salvatore Bucci | Executive COO | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ribbon Communications. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. To learn how to invest in Ribbon Stock, please use our How to Invest in Ribbon Communications guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ribbon Communications. If investors know Ribbon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ribbon Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.68) | Earnings Share (0.31) | Revenue Per Share 4.672 | Quarterly Revenue Growth 0.035 | Return On Assets 0.0072 |
The market value of Ribbon Communications is measured differently than its book value, which is the value of Ribbon that is recorded on the company's balance sheet. Investors also form their own opinion of Ribbon Communications' value that differs from its market value or its book value, called intrinsic value, which is Ribbon Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ribbon Communications' market value can be influenced by many factors that don't directly affect Ribbon Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ribbon Communications' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ribbon Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ribbon Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.