Rapid7 Net Income vs. Price To Sales
| RPD Stock | USD 42.86 0.42 0.99% |
Net Loss | First Reported 2013-03-31 | Previous Quarter 8.2 M | Current Value 16.6 M | Quarterly Volatility 18.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.8 | 0.702 |
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For Rapid7 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rapid7 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rapid7 Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rapid7's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rapid7 Inc over time as well as its relative position and ranking within its peers.
Rapid7 |
Rapid7's Revenue Breakdown by Earning Segment
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Is Systems Software 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 Rapid7. If investors know Rapid7 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 Rapid7 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.7 | Revenue Per Share 13.399 | Quarterly Revenue Growth 0.08 | Return On Assets 0.0189 | Return On Equity (1.28) |
The market value of Rapid7 Inc is measured differently than its book value, which is the value of Rapid7 that is recorded on the company's balance sheet. Investors also form their own opinion of Rapid7's value that differs from its market value or its book value, called intrinsic value, which is Rapid7's 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 Rapid7's market value can be influenced by many factors that don't directly affect Rapid7's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rapid7's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rapid7 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rapid7's 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.
Rapid7 Inc Price To Sales vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rapid7's current stock value. Our valuation model uses many indicators to compare Rapid7 value to that of its competitors to determine the firm's financial worth. Rapid7 Inc is rated below average in net income category among its peers. It also is rated below average in price to sales category among its peers . At present, Rapid7's Net Loss is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Rapid7 by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Rapid7 Price To Sales vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Rapid7 |
| = | (149.26 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Rapid7 |
| = | 3.22 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Rapid7 Price To Sales Comparison
Rapid7 is currently under evaluation in price to sales category among its peers.
Rapid7 Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rapid7, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rapid7 will eventually generate negative long term returns. The profitability progress is the general direction of Rapid7's change in net profit over the period of time. It can combine multiple indicators of Rapid7, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.3 M | 1.4 M | |
| Operating Income | -80.7 M | -84.8 M | |
| Income Before Tax | -149.8 M | -142.3 M | |
| Total Other Income Expense Net | -69 M | -65.6 M | |
| Net Loss | -149.3 M | -141.8 M | |
| Income Tax Expense | -518 K | -492.1 K | |
| Net Loss | -149.3 M | -141.8 M | |
| Net Loss | -112.2 M | -117.9 M | |
| Interest Income | 10.2 M | 10.7 M | |
| Non Operating Income Net Other | 334.6 K | 317.9 K | |
| Net Interest Income | -54.5 M | -51.8 M | |
| Change To Netincome | 136 M | 142.8 M | |
| Net Loss | (2.46) | (2.58) | |
| Income Quality | (0.70) | (0.66) | |
| Net Income Per E B T | 1.00 | 0.81 |
Rapid7 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rapid7. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rapid7 position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rapid7's important profitability drivers and their relationship over time.
Use Rapid7 in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rapid7 position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rapid7 will appreciate offsetting losses from the drop in the long position's value.Rapid7 Pair Trading
Rapid7 Inc Pair Trading Analysis
The ability to find closely correlated positions to Rapid7 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rapid7 when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rapid7 - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rapid7 Inc to buy it.
The correlation of Rapid7 is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rapid7 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rapid7 Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rapid7 can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Rapid7 position
In addition to having Rapid7 in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies involved in production and distribution of domestic and international beer. The Beers theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beers Theme or any other thematic opportunities.
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Check out Your Equity Center. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project Rapid7's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Rapid7 Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Rapid7's income statement, its balance sheet, and the statement of cash flows.