Rackspace Technology Stock Analysis

RXT Stock  USD 1.00  0.03  3.09%   
Rackspace Technology has over 3.28 Billion in debt which may indicate that it relies heavily on debt financing. At this time, Rackspace Technology's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 2.9 B in 2026, despite the fact that Net Debt To EBITDA is likely to grow to (8.15). Rackspace Technology's financial risk is the risk to Rackspace Technology stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Rackspace Technology's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Rackspace Technology's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Rackspace Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Rackspace Technology's stakeholders.
For most companies, including Rackspace Technology, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Rackspace Technology, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Rackspace Technology's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
0.8119
Book Value
(4.87)
Operating Margin
(0.03)
Profit Margin
(0.09)
Return On Assets
(0.02)
Given that Rackspace Technology's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Rackspace Technology is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Rackspace Technology to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Rackspace Technology is said to be less leveraged. If creditors hold a majority of Rackspace Technology's assets, the Company is said to be highly leveraged.
At this time, Rackspace Technology's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 3.3 B in 2026, whereas Total Current Liabilities is likely to drop slightly above 823.4 M in 2026.
Rackspace Technology is undervalued with Real Value of 1.21 and Target Price of 1.48. The main objective of Rackspace Technology stock analysis is to determine its intrinsic value, which is an estimate of what Rackspace Technology is worth, separate from its market price. There are two main types of Rackspace Technology's stock analysis: fundamental analysis and technical analysis.
The Rackspace Technology stock is traded in the USA on NASDAQ Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Rackspace Technology is usually not traded on Independence Day, Labour Day, Thanksgiving Day, Christmas Day, New Year 's Day, Dr . Martin Luther King Jr 's Birthday, Washington 's Birthday, Good Friday, Memorial Day, Juneteenth Holiday. Rackspace Stock trading window is adjusted to America/New York timezone.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rackspace Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in discontinued.
For more information on how to buy Rackspace Stock please use our How to Invest in Rackspace Technology guide.

Rackspace Stock Analysis Notes

About 78.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.81. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rackspace Technology recorded a loss per share of 1.05. The entity had not issued any dividends in recent years. The firm had 1:12 split on the 20th of July 2020. Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas. Rackspace Technology operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 6600 people. To find out more about Rackspace Technology contact the company at 800 961 4454 or learn more at https://www.rackspace.com.

Rackspace Technology Quarterly Total Revenue

671.2 Million

Rackspace Technology Investment Alerts

Rackspace Technology generated a negative expected return over the last 90 days
Rackspace Technology has high historical volatility and very poor performance
Rackspace Technology has some characteristics of a very speculative penny stock
Rackspace Technology has a very high chance of going through financial distress in the upcoming years
The company reported the last year's revenue of 2.74 B. Reported Net Loss for the year was (858.2 M) with profit before taxes, overhead, and interest of 532.8 M.
Over 78.0% of the company shares are owned by institutional investors
Latest headline from globenewswire.com: Rackspace Technology Positioned as a Leader in Three Categories of 2025 ISG Provider Lens Multi Public Cloud Services Report

Rackspace Technology Upcoming and Recent Events

28th of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
28th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

Rackspace Largest EPS Surprises

Earnings surprises can significantly impact Rackspace Technology's 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.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2025-08-07
2025-06-30-0.05-0.06-0.0120 
2024-03-12
2023-12-31-0.04-0.030.0125 
2023-11-07
2023-09-30-0.05-0.040.0120 
View All Earnings Estimates

Rackspace Technology Thematic Classifications

In addition to having Rackspace Technology stock in your portfolios, you can 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 favorite investment opportunity, you can then obtain an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility. If you are a result-oriented investor, you can benefit from optimizing one of our existing themes to build an efficient portfolio against your specific investing outlook.
IT Idea
IT
Information technology and IT services
Computers Idea
Computers
Computers production and distribution

Rackspace Stock Institutional Investors

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
Gsa Capital Partners Llp2025-06-30
856.4 K
Acadian Asset Management Llc2025-06-30
822.5 K
Millennium Management Llc2025-06-30
796.3 K
Federated Hermes Inc2025-06-30
795.1 K
D. E. Shaw & Co Lp2025-06-30
653 K
Northern Trust Corp2025-06-30
632.3 K
Charles Schwab Investment Management Inc2025-06-30
630.7 K
Goldman Sachs Group Inc2025-06-30
531 K
Ameriprise Financial Inc2025-06-30
387.2 K
Apollo Management Holdings Lp2025-06-30
129.6 M
Vanguard Group Inc2025-06-30
5.9 M
Note, although Rackspace Technology's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Rackspace Market Capitalization

The company currently falls under 'Small-Cap' category with a total capitalization of 237.33 M.

Rackspace Profitablity

The company has Net Profit Margin of (0.09) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (0.03) %, which entails that for every $100 of revenue, it lost $0.03.
Last ReportedProjected for Next Year
Return On Tangible Assets(0.67)(0.64)
Return On Capital Employed(0.46)(0.43)
Return On Assets(0.32)(0.31)
Return On Equity 0.77  0.46 

Management Efficiency

Rackspace Technology has Return on Asset of (0.0186) % which means that on every $100 spent on assets, it lost $0.0186. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (3.5276) %, meaning that it generated no profit with money invested by stockholders. Rackspace Technology's management efficiency ratios could be used to measure how well Rackspace Technology manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to -0.64 in 2026. Return On Capital Employed is likely to gain to -0.43 in 2026. At this time, Rackspace Technology's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 3.3 B in 2026, whereas Total Current Liabilities is likely to drop slightly above 823.4 M in 2026.
Last ReportedProjected for Next Year
Book Value Per Share(5.14)(4.88)
Tangible Book Value Per Share(10.35)(10.86)
Enterprise Value Over EBITDA(9.94)(9.44)
Price Book Value Ratio(0.57)(0.54)
Enterprise Value Multiple(9.94)(9.44)
Price Fair Value(0.57)(0.54)
Enterprise Value4.1 B3.5 B
The management strategies employed by Rackspace Technology's are designed to enhance shareholder value and ensure long-term growth. We assess the effectiveness of these strategies in our stock analysis.
Operating Margin
(0.03)
Profit Margin
(0.09)
Beta
2.137
Return On Assets
(0.02)
Return On Equity
(3.53)

Technical Drivers

As of the 6th of January, Rackspace Technology holds the Coefficient Of Variation of (1,359), risk adjusted performance of (0.04), and Variance of 25.88. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rackspace Technology, as well as the relationship between them.

Rackspace Technology Price Movement Analysis

The output start index for this execution was two with a total number of output elements of fifty-nine. The Simple Moving Average indicator is calculated by adding the closing price of Rackspace Technology for a given number of time periods and then dividing this total by the number of time periods. It is used to smooth out Rackspace Technology short-term fluctuations and highlight longer-term trends or cycles.

Rackspace Technology 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 Rackspace Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Rackspace Technology's 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 Rackspace Technology 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.
 
Dharmendra Sinha over a month ago
Disposition of 59322 shares by Dharmendra Sinha of Rackspace Technology at 1.01 subject to Rule 16b-3
 
Dharmendra Sinha over a month ago
Disposition of 91151 shares by Dharmendra Sinha of Rackspace Technology at 1.04 subject to Rule 16b-3
 
Scott Anthony over three months ago
Disposition of 40000 shares by Scott Anthony of Rackspace Technology at 1.43 subject to Rule 16b-3
 
Kandiah Gajakarnan Vibushanan over three months ago
Acquisition by Kandiah Gajakarnan Vibushanan of 4000000 shares of Rackspace Technology subject to Rule 16b-3
 
Srini Koushik over three months ago
Disposition of 11477 shares by Srini Koushik of Rackspace Technology at 1.17 subject to Rule 16b-3
 
Srini Koushik over six months ago
Disposition of 73972 shares by Srini Koushik of Rackspace Technology at 1.87 subject to Rule 16b-3
 
Dharmendra Sinha over six months ago
Disposition of 55917 shares by Dharmendra Sinha of Rackspace Technology at 1.14 subject to Rule 16b-3
 
Teal-guess Kellie over six months ago
Disposition of 99213 shares by Teal-guess Kellie of Rackspace Technology at 1.24 subject to Rule 16b-3
 
Teal-guess Kellie over six months ago
Disposition of 6993 shares by Teal-guess Kellie of Rackspace Technology at 2.54 subject to Rule 16b-3
 
Srini Koushik over six months ago
Disposition of 73972 shares by Srini Koushik of Rackspace Technology at 1.87 subject to Rule 16b-3
 
Dharmendra Sinha over six months ago
Disposition of 17480 shares by Dharmendra Sinha of Rackspace Technology at 2.37 subject to Rule 16b-3
 
Mark Marino over six months ago
Disposition of 94571 shares by Mark Marino of Rackspace Technology at 2.34 subject to Rule 16b-3

Rackspace Technology Outstanding Bonds

Rackspace Technology 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. Rackspace Technology 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 Rackspace bonds can be classified according to their maturity, which is the date when Rackspace Technology 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.

Rackspace Technology Predictive Daily Indicators

Rackspace Technology 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 Rackspace Technology 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.

Rackspace Technology Forecast Models

Rackspace Technology's time-series forecasting models are one of many Rackspace Technology's stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Rackspace Technology's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Rackspace Technology Bond Ratings

Rackspace Technology financial ratings play a critical role in determining how much Rackspace Technology have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Rackspace Technology's borrowing costs.
Piotroski F Score
6
HealthyView
Beneish M Score
(2.58)
Unlikely ManipulatorView

Rackspace Technology Debt to Cash Allocation

Rackspace Technology has 3.28 B in debt with debt to equity (D/E) ratio of 3.09, meaning that the company heavily relies on borrowing funds for operations. Rackspace Technology has a current ratio of 1.21, demonstrating that it may have difficulties to pay its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Rackspace to invest in growth at high rates of return.

Rackspace Technology Common Stock Shares Outstanding Over Time

Rackspace Technology Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Rackspace Technology uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Rackspace Technology Debt Ratio

    
  60.0   
It appears slightly above 40% of Rackspace Technology's assets are financed be debt. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Rackspace Technology's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Rackspace Technology, which in turn will lower the firm's financial flexibility.

Rackspace Technology Corporate Bonds Issued

Rackspace Short Long Term Debt Total

Short Long Term Debt Total

3.1 Billion

At this time, Rackspace Technology's Short and Long Term Debt Total is comparatively stable compared to the past year.

About Rackspace Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Rackspace Technology prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Rackspace shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as Rackspace Technology. By using and applying Rackspace Stock analysis, traders can create a robust methodology for identifying Rackspace entry and exit points for their positions.
Last ReportedProjected for Next Year
Pretax Profit Margin(0.37)(0.39)
Operating Profit Margin(0.38)(0.36)
Net Loss(0.36)(0.34)
Gross Profit Margin 0.22  0.35 

Current Rackspace Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Rackspace analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Rackspace analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
1.48Hold6Odds
Rackspace Technology current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most Rackspace analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Rackspace stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Rackspace Technology, talking to its executives and customers, or listening to Rackspace conference calls.
Rackspace Analyst Advice Details

Rackspace Stock Analysis Indicators

Rackspace Technology stock analysis indicators help investors evaluate how Rackspace Technology stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading Rackspace Technology shares will generate the highest return on investment. By understating and applying Rackspace Technology stock analysis, traders can identify Rackspace Technology position entry and exit signals to maximize returns.
Begin Period Cash Flow199.7 M
Long Term Debt2.8 B
Common Stock Shares Outstanding224.8 M
Total Stockholder Equity-1 B
Total Cashflows From Investing Activities-86.6 M
Tax Provision-23.3 M
Property Plant And Equipment Net735.6 M
Cash And Short Term Investments144 M
Cash144 M
Accounts Payable389.6 M
Net Debt3.1 B
50 Day M A1.196
Total Current Liabilities766.6 M
Other Operating Expenses3.6 B
Non Current Assets Total2.4 B
Forward Price Earnings97.0874
Non Currrent Assets Other119.3 M
Stock Based Compensation63.4 M

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.