RigNet Stock Analysis (NASDAQ:RNET)

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$20.35 $0.45 (2.16%) RNET stock closing price Apr 26, 2017 (Closing)
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RigNet
Updated on : Apr 26, 2017
previous close
RNET 20.4 (0%)
NASDAQ 6025.2 (0%)
Closing Price On: Apr 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Non-US
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-1.1%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
61.5M
Debt/Equity Ratio:
 0.55
Compared to the industry
Cash Flow
Operating cash flow:
$16.4M
Net Income:
-$3.7M
PROS      CONS
FCF Margin
PS Valuation
Recent Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
RNET PS :
1.6
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-1%
Return on Equity:
-9.5%
Free Cash Flow Margin:
26.4%
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RigNet Analysis Video

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View RigNet stock analysis video. This is our RNET analyst opinion covering the buy and sell arguments for RNET stock.

RigNet Inc Stock Rating (2.5/5)

Our RigNet stock opinion is based on fundamentals of the company. This RigNet stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy RNET stock?

  • When compared with the Wireless Non-US industry average PS ratio of 2.7, the price-to-sales ratio of 1.6 for RNET stock is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 26.4%.

Should you sell RNET stock?

  • RigNet had a low YoY revenue growth of 1.1% in the 2016 Q4.
  • RigNet reported an average operating margin of -1.1% over the Last Twelve Months (LTM).
  • RigNet posted an average Net loss of -5.1% in the last twelve months.
  • With a debt/equity ratio of  0.55, RigNet is highly leveraged in comparison to Computer and Technology peers.
  • PE ratio is meaningless for RNET stock as the company has losses.
  • RigNet's negative ROIC of -1% indicates operational inefficiency.
  • A negative ROE of -9.5% indicates that the company is not able to generate profits with the money shareholders have invested.

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