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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 1.81
RAX's Cash to Debt is ranked lower than
68% of the 1781 Companies
in the Global Information Technology Services industry.

( Industry Median: 20.60 vs. RAX: 1.81 )
Ranked among companies with meaningful Cash to Debt only.
RAX' s 10-Year Cash to Debt Range
Min: 0.19  Med: 1.34 Max: N/A
Current: 1.81
Equity to Asset 0.68
RAX's Equity to Asset is ranked higher than
61% of the 1579 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.61 vs. RAX: 0.68 )
Ranked among companies with meaningful Equity to Asset only.
RAX' s 10-Year Equity to Asset Range
Min: 0.29  Med: 0.58 Max: 0.71
Current: 0.68
0.29
0.71
Interest Coverage 41.66
RAX's Interest Coverage is ranked lower than
72% of the 1164 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. RAX: 41.66 )
Ranked among companies with meaningful Interest Coverage only.
RAX' s 10-Year Interest Coverage Range
Min: 2  Med: 21.11 Max: 9999.99
Current: 41.66
2
9999.99
F-Score: 5
Z-Score: 6.34
M-Score: -3.51
WACC vs ROIC
13.30%
12.37%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 9.39
RAX's Operating margin (%) is ranked higher than
66% of the 1748 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.11 vs. RAX: 9.39 )
Ranked among companies with meaningful Operating margin (%) only.
RAX' s 10-Year Operating margin (%) Range
Min: 1.91  Med: 8.95 Max: 13.95
Current: 9.39
1.91
13.95
Net-margin (%) 6.32
RAX's Net-margin (%) is ranked higher than
63% of the 1748 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.20 vs. RAX: 6.32 )
Ranked among companies with meaningful Net-margin (%) only.
RAX' s 10-Year Net-margin (%) Range
Min: 0.37  Med: 5.94 Max: 8.85
Current: 6.32
0.37
8.85
ROE (%) 10.26
RAX's ROE (%) is ranked higher than
62% of the 1703 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.27 vs. RAX: 10.26 )
Ranked among companies with meaningful ROE (%) only.
RAX' s 10-Year ROE (%) Range
Min: 9.13  Med: 13.23 Max: 103.39
Current: 10.26
9.13
103.39
ROA (%) 7.06
RAX's ROA (%) is ranked higher than
69% of the 1788 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.29 vs. RAX: 7.06 )
Ranked among companies with meaningful ROA (%) only.
RAX' s 10-Year ROA (%) Range
Min: 4.4  Med: 7.65 Max: 52.15
Current: 7.06
4.4
52.15
ROC (Joel Greenblatt) (%) 17.10
RAX's ROC (Joel Greenblatt) (%) is ranked lower than
55% of the 1761 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.35 vs. RAX: 17.10 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RAX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 13.89  Med: 17.11 Max: 62.11
Current: 17.1
13.89
62.11
Revenue Growth (3Y)(%) 18.70
RAX's Revenue Growth (3Y)(%) is ranked higher than
83% of the 1315 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.30 vs. RAX: 18.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RAX' s 10-Year Revenue Growth (3Y)(%) Range
Min: 17.2  Med: 22.85 Max: 83.5
Current: 18.7
17.2
83.5
EBITDA Growth (3Y)(%) 17.30
RAX's EBITDA Growth (3Y)(%) is ranked higher than
71% of the 1053 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.80 vs. RAX: 17.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RAX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 27.30 Max: 101.7
Current: 17.3
0
101.7
EPS Growth (3Y)(%) 11.90
RAX's EPS Growth (3Y)(%) is ranked higher than
58% of the 975 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.70 vs. RAX: 11.90 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RAX' s 10-Year EPS Growth (3Y)(%) Range
Min: 8.1  Med: 23.75 Max: 157.1
Current: 11.9
8.1
157.1
» RAX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

RAX Guru Trades in Q3 2014

Jana Partners 7,004,977 sh (New)
Julian Robertson 27,200 sh (New)
Steven Cohen 4,673,600 sh (+44.10%)
Murray Stahl 26,409 sh (+24.52%)
Daniel Loeb Sold Out
Ray Dalio Sold Out
Jim Simons Sold Out
Paul Tudor Jones Sold Out
George Soros Sold Out
RS Investment Management 520,998 sh (-1.66%)
Mario Gabelli 6,800 sh (-26.09%)
» More
Q4 2014

RAX Guru Trades in Q4 2014

Joel Greenblatt 15,977 sh (New)
Paul Tudor Jones 5,784 sh (New)
Jim Simons 246,900 sh (New)
RS Investment Management 1,476,378 sh (+183.37%)
Jana Partners 8,001,600 sh (+14.23%)
Jana Partners 8,001,600 sh (unchged)
Julian Robertson Sold Out
Mario Gabelli Sold Out
Steven Cohen 4,069,000 sh (-12.94%)
Murray Stahl 17,780 sh (-32.67%)
» More
Q1 2015

RAX Guru Trades in Q1 2015

Jim Simons 724,200 sh (+193.32%)
Paul Tudor Jones Sold Out
RS Investment Management 1,371,773 sh (-7.09%)
Murray Stahl 16,164 sh (-9.09%)
Jana Partners 5,997,300 sh (-25.05%)
Joel Greenblatt 8,172 sh (-48.85%)
Steven Cohen 1,835,200 sh (-54.90%)
» More
Q2 2015

RAX Guru Trades in Q2 2015

Lee Ainslie 6,560 sh (New)
John Hussman 175,000 sh (New)
Paul Tudor Jones 60,835 sh (New)
Joel Greenblatt 79,914 sh (+877.90%)
Jana Partners 11,000,000 sh (+83.42%)
Jim Simons 1,303,900 sh (+80.05%)
Murray Stahl 24,300 sh (+50.33%)
RS Investment Management 630,633 sh (-54.03%)
RS Investment Management 630,633 sh (-54.03%)
Steven Cohen 581,400 sh (-68.32%)
» More
» Details

Insider Trades

Latest Guru Trades with RAX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Ratios

vs
industry
vs
history
P/E(ttm) 35.31
RAX's P/E(ttm) is ranked lower than
67% of the 1109 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.00 vs. RAX: 35.31 )
Ranked among companies with meaningful P/E(ttm) only.
RAX' s 10-Year P/E(ttm) Range
Min: 24.41  Med: 67.54 Max: 124.84
Current: 35.31
24.41
124.84
Forward P/E 28.90
RAX's Forward P/E is ranked lower than
71% of the 528 Companies
in the Global Information Technology Services industry.

( Industry Median: 19.16 vs. RAX: 28.90 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 37.70
RAX's PE(NRI) is ranked lower than
68% of the 1101 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.80 vs. RAX: 37.70 )
Ranked among companies with meaningful PE(NRI) only.
RAX' s 10-Year PE(NRI) Range
Min: 23.89  Med: 67.14 Max: 124.84
Current: 37.7
23.89
124.84
P/B 3.38
RAX's P/B is ranked lower than
62% of the 1572 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.63 vs. RAX: 3.38 )
Ranked among companies with meaningful P/B only.
RAX' s 10-Year P/B Range
Min: 1.97  Med: 6.53 Max: 12.9
Current: 3.38
1.97
12.9
P/S 2.22
RAX's P/S is ranked lower than
55% of the 1715 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.00 vs. RAX: 2.22 )
Ranked among companies with meaningful P/S only.
RAX' s 10-Year P/S Range
Min: 0.98  Med: 3.98 Max: 8.52
Current: 2.22
0.98
8.52
PFCF 36.33
RAX's PFCF is ranked lower than
70% of the 815 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.41 vs. RAX: 36.33 )
Ranked among companies with meaningful PFCF only.
RAX' s 10-Year PFCF Range
Min: 24.32  Med: 68.67 Max: 162.58
Current: 36.33
24.32
162.58
POCF 7.80
RAX's POCF is ranked higher than
81% of the 1017 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.74 vs. RAX: 7.80 )
Ranked among companies with meaningful POCF only.
RAX' s 10-Year POCF Range
Min: 3.82  Med: 13.19 Max: 27.89
Current: 7.8
3.82
27.89
EV-to-EBIT 22.47
RAX's EV-to-EBIT is ranked lower than
65% of the 1149 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.13 vs. RAX: 22.47 )
Ranked among companies with meaningful EV-to-EBIT only.
RAX' s 10-Year EV-to-EBIT Range
Min: 14.5  Med: 41.70 Max: 71.7
Current: 22.47
14.5
71.7
PEG 1.76
RAX's PEG is ranked higher than
50% of the 487 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.75 vs. RAX: 1.76 )
Ranked among companies with meaningful PEG only.
RAX' s 10-Year PEG Range
Min: 1.44  Med: 2.38 Max: 3.43
Current: 1.76
1.44
3.43
Shiller P/E 48.06
RAX's Shiller P/E is ranked lower than
74% of the 699 Companies
in the Global Information Technology Services industry.

( Industry Median: 28.94 vs. RAX: 48.06 )
Ranked among companies with meaningful Shiller P/E only.
RAX' s 10-Year Shiller P/E Range
Min: 48.06  Med: 93.21 Max: 207.71
Current: 48.06
48.06
207.71
Current Ratio 1.85
RAX's Current Ratio is ranked lower than
56% of the 1625 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.07 vs. RAX: 1.85 )
Ranked among companies with meaningful Current Ratio only.
RAX' s 10-Year Current Ratio Range
Min: 0.52  Med: 1.40 Max: 2.21
Current: 1.85
0.52
2.21
Quick Ratio 1.85
RAX's Quick Ratio is ranked lower than
52% of the 1625 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.92 vs. RAX: 1.85 )
Ranked among companies with meaningful Quick Ratio only.
RAX' s 10-Year Quick Ratio Range
Min: 0.52  Med: 1.40 Max: 2.21
Current: 1.85
0.52
2.21
Days Sales Outstanding 30.73
RAX's Days Sales Outstanding is ranked higher than
88% of the 1511 Companies
in the Global Information Technology Services industry.

( Industry Median: 69.32 vs. RAX: 30.73 )
Ranked among companies with meaningful Days Sales Outstanding only.
RAX' s 10-Year Days Sales Outstanding Range
Min: 21.22  Med: 25.66 Max: 31.83
Current: 30.73
21.22
31.83

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.65
RAX's Price/Tangible Book is ranked higher than
51% of the 1327 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.00 vs. RAX: 3.65 )
Ranked among companies with meaningful Price/Tangible Book only.
RAX' s 10-Year Price/Tangible Book Range
Min: 2.54  Med: 7.01 Max: 13.63
Current: 3.65
2.54
13.63
Price/Projected FCF 1.86
RAX's Price/Projected FCF is ranked lower than
58% of the 823 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.66 vs. RAX: 1.86 )
Ranked among companies with meaningful Price/Projected FCF only.
RAX' s 10-Year Price/Projected FCF Range
Min: 2.27  Med: 3.92 Max: 7.27
Current: 1.86
2.27
7.27
Price/Median PS Value 0.56
RAX's Price/Median PS Value is ranked higher than
88% of the 1520 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.11 vs. RAX: 0.56 )
Ranked among companies with meaningful Price/Median PS Value only.
RAX' s 10-Year Price/Median PS Value Range
Min: 0.29  Med: 0.98 Max: 2.01
Current: 0.56
0.29
2.01
Price/Peter Lynch Fair Value 1.86
RAX's Price/Peter Lynch Fair Value is ranked lower than
61% of the 347 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.60 vs. RAX: 1.86 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
RAX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2.02  Med: 2.74 Max: 3.96
Current: 1.86
2.02
3.96
Price/Graham Number 2.38
RAX's Price/Graham Number is ranked lower than
58% of the 853 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.03 vs. RAX: 2.38 )
Ranked among companies with meaningful Price/Graham Number only.
RAX' s 10-Year Price/Graham Number Range
Min: 1.81  Med: 4.72 Max: 8.15
Current: 2.38
1.81
8.15
Earnings Yield (Greenblatt) (%) 4.47
RAX's Earnings Yield (Greenblatt) (%) is ranked higher than
56% of the 1711 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.80 vs. RAX: 4.47 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RAX' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 1.4  Med: 2.40 Max: 6.9
Current: 4.47
1.4
6.9
Forward Rate of Return (Yacktman) (%) 21.10
RAX's Forward Rate of Return (Yacktman) (%) is ranked higher than
78% of the 694 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.48 vs. RAX: 21.10 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
RAX' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 0.5  Med: 22.50 Max: 43.6
Current: 21.1
0.5
43.6

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 1,997 2,269 2,581
EPS($) 0.83 1.05 1.24
EPS without NRI($) 0.83 1.05 1.24

Business Description

Industry: Application Software » Information Technology Services
Compare: » details
Traded in other countries:R42.Germany,
Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.

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