Red Hat Stock Analysis (NYSE:RHT)

Add to My Stocks
$98.92 $0.33 (0.33%) RHT stock closing price Jul 20, 2017 (Closing)
Watch Robo Advisor Video of RHT Stock Analysis
Red Hat
Updated on : Jul 20, 2017
previous close
RHT 98.9 (0%)
NASDAQ 6390 (0%)
Closing Price On: Jul 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13.7%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
751.2M
Debt/Equity Ratio:
 0.58
Compared to the industry
Cash Flow
Operating cash flow:
$257.9M
Net Income:
$73.2M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RHT PS :
7
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
39%
Return on Equity:
20.5%
Free Cash Flow Margin:
34.3%
Double Tap To Exit Full Screen
0:00
/

Red Hat Analysis Video

471 7 2

View Red Hat stock analysis video. This is our RHT analyst opinion covering the buy and sell arguments for RHT stock.

Red Hat Inc Stock Rating (3.4/5)

Our Red Hat stock opinion is based on fundamentals of the company. This Red Hat stock analysis is based on latest Q1 earnings for 2018. The stock price analysis takes into account a company's valuation metrics.

Should you buy RHT stock?

  • Red Hat's revenue growth came in at 19.2% in 2018 Q1.
  • The TTM operating margin was good at 13.7% for Red Hat.
  • Net margins came in at average 10.5% for Red Hat over the last twelve months.
  • The company has an operating cash flow which is 3.5 times the net income.
  • Red Hat generates a high return on invested capital of 39%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Red Hat at 20.5%.
  • The company has a healthy free cash flow margin of 34.3%.

Should you sell RHT stock?

  • Red Hat is debt laden and has a high debt/equity ratio of  0.58.
  • Trading at a PE ratio of 61.4, RHT stock is overvalued in comparison to industry average multiple of 26.6.
  • RHT stock is trading at a PS multiple of 7, which is a negative when compared to the Computer-Software industry average multiple of 2.8.

Comments on this video and Red Hat stock