Rapid7, Inc. Fundamental Analysis (NASDAQ: RPD)
Rapid7, Inc. (NASDAQ: RPD) shows weak financial fundamentals with a PE ratio of 28.35, profit margin of 2.61%, and ROE of 16.38%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RPD's fundamental strength across five key dimensions:
Efficiency Score
WeakRPD struggles to generate sufficient returns from assets.
Valuation Score
ModerateRPD shows balanced valuation metrics.
Growth Score
ModerateRPD shows steady but slowing expansion.
Financial Health Score
WeakRPD carries high financial risk with limited liquidity.
Profitability Score
ModerateRPD maintains healthy but balanced margins.
Key Financial Metrics
Is RPD Expensive or Cheap?
P/E Ratio
RPD trades at 28.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RPD's PEG of -1.16 indicates potential undervaluation.
Price to Book
The market values Rapid7, Inc. at 3.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.38 times EBITDA. This is generally considered low.
How Well Does RPD Make Money?
Net Profit Margin
For every $100 in sales, Rapid7, Inc. keeps $2.61 as profit after all expenses.
Operating Margin
Core operations generate 1.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.38 in profit for every $100 of shareholder equity.
ROA
Rapid7, Inc. generates $1.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rapid7, Inc. produces operating cash flow of $165.11M, showing steady but balanced cash generation.
Free Cash Flow
Rapid7, Inc. generates strong free cash flow of $148.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.22 in free cash annually.
FCF Yield
RPD converts 22.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How RPD Stacks Against Its Sector Peers
| Metric | RPD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.35 | 35.27 | Better (Cheaper) |
| ROE | 16.38% | 703.00% | Weak |
| Net Margin | 2.61% | -137673.00% (disorted) | Weak |
| Debt/Equity | 5.52 | 0.45 | Weak (High Leverage) |
| Current Ratio | 0.74 | 3.38 | Weak Liquidity |
| ROA | 1.30% | 259.00% | Weak |
RPD outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rapid7, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta