Rackspace Technology Revenue vs. Price To Sales

RXT Stock  USD 2.64  0.04  1.49%   
Based on the key profitability measurements obtained from Rackspace Technology's financial statements, Rackspace Technology's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Rackspace Technology's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2019-03-31
Previous Quarter
684.9 M
Current Value
675.8 M
Quarterly Volatility
61.4 M
 
Covid
At this time, Rackspace Technology's Days Sales Outstanding is comparatively stable compared to the past year. EV To Sales is likely to gain to 2.27 in 2024, whereas Price To Sales Ratio is likely to drop 0.14 in 2024. At this time, Rackspace Technology's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 47.2 M in 2024, despite the fact that Net Loss is likely to grow to (1 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.2126
Way Up
Slightly volatile
For Rackspace Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rackspace Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rackspace Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rackspace Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rackspace Technology over time as well as its relative position and ranking within its peers.
  

Rackspace Technology's Revenue Breakdown by Earning Segment

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Is Application 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 Rackspace Technology. If investors know Rackspace 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 Rackspace Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(3.45)
Revenue Per Share
12.488
Quarterly Revenue Growth
(0.08)
Return On Assets
(0.02)
Return On Equity
(3.53)
The market value of Rackspace Technology is measured differently than its book value, which is the value of Rackspace that is recorded on the company's balance sheet. Investors also form their own opinion of Rackspace Technology's value that differs from its market value or its book value, called intrinsic value, which is Rackspace Technology'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 Rackspace Technology's market value can be influenced by many factors that don't directly affect Rackspace Technology'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 Rackspace Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rackspace Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rackspace Technology'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.

Rackspace Technology Price To Sales vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rackspace Technology's current stock value. Our valuation model uses many indicators to compare Rackspace Technology value to that of its competitors to determine the firm's financial worth.
Rackspace Technology is rated third in revenue category among its peers. It is rated below average in price to sales category among its peers . The ratio of Revenue to Price To Sales for Rackspace Technology is about  13,639,760,148 . At this time, Rackspace Technology's Total Revenue is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Rackspace Technology 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.

Rackspace Revenue vs. Competition

Rackspace Technology is rated third in revenue category among its peers. Market size based on revenue of Information Technology industry is at this time estimated at about 19.36 Billion. Rackspace Technology retains roughly 2.96 Billion in revenue claiming about 15% of equities under Information Technology industry.

Rackspace Price To Sales vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Rackspace Technology

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
2.96 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

Rackspace Technology

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.22 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.

Rackspace Price To Sales Comparison

Rackspace Technology is currently under evaluation in price to sales category among its peers.

Rackspace Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rackspace Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rackspace Technology will eventually generate negative long term returns. The profitability progress is the general direction of Rackspace Technology's change in net profit over the period of time. It can combine multiple indicators of Rackspace Technology, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income60.3 M63.3 M
Net Interest Income-226.3 M-237.6 M
Operating Income-899.4 M-854.4 M
Net Loss-1.1 B-1 B
Income Before Tax-854.4 M-811.7 M
Total Other Income Expense Net45 M47.2 M
Net Loss-724.3 M-688.1 M
Net Loss-837.8 M-795.9 M
Income Tax Expense-16.6 M-17.4 M
Non Operating Income Net Other-11.7 M-12.3 M
Change To Netincome773 M811.7 M
Net Loss(3.89)(4.09)
Income Quality(0.45)(0.47)
Net Income Per E B T 0.98  0.62 

Rackspace Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Rackspace Technology. 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 Rackspace Technology 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 Rackspace Technology's important profitability drivers and their relationship over time.

Use Rackspace Technology 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 Rackspace Technology 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 Rackspace Technology will appreciate offsetting losses from the drop in the long position's value.

Rackspace Technology Pair Trading

Rackspace Technology Pair Trading Analysis

The ability to find closely correlated positions to Rackspace Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rackspace Technology 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 Rackspace Technology - 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 Rackspace Technology to buy it.
The correlation of Rackspace Technology 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 Rackspace Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rackspace Technology 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 Rackspace Technology 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Rackspace Technology position

In addition to having Rackspace Technology 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.

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Healthcare Funds
Healthcare Funds Theme
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 37 constituents at this time.
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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.