Added to YB: 2024-04-16
Pitch date: 2024-03-25
RNG [bearish]
RingCentral, Inc.
+12.26%
current return
Author Info
NTH Capital is a buyside analyst in London who shares equity research ideas. Sign up for the newsletter.
Company Info
RingCentral, Inc., together with its subsidiaries, provides cloud business communications, contact center, video, and hybrid event solutions in North America and internationally.
Market Cap
$2.4B
Pitch Price
$35.41
Price Target
23.05 (-26%)
Dividend
N/A
EV/EBITDA
10.33
P/E
193.53
EV/Sales
1.49
Sector
Software
Category
value
Ring Central Investment Thesis
RNG: Delicate balance of growth, FCF & debt under pressure. Slowing rev growth (<10% YoY), FCF strain from prepaid partner commissions, & high $161M debt due '25 w/ junk rating. Risks: New high-cost debt, lowered guide, & growth cuts. Mgmt churn & misaligned incentives a concern. 35% downside to 1.3x EV/Sales (40% premium to peer 8x8).
Read full article (7 min)