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37.56 (1y: -26%)
Market Cap 5.25 B P/E(ttm) 48.80
Enterprise Value 5.08 B P/B 6.20
RAX- NYSE (USA)
Rackspace Hosting, Inc.
Not Rated
Top Ranked Predictable Companies
$37.56
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GuruFocus Financial Strength Rank measures how strong a companyย’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 : 6/10

vs
industry		 vs
history
Cash to Debt 2.33
RAX's Cash to Debt is ranked lower than
75% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. RAX: 2.33 )
RAX' s 10-Year Cash to Debt Range
Min: 0.22   Max: No Debt
Current: 2.33
Equity to Asset 0.58
RAX's Equity to Asset is ranked higher than
59% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.49 vs. RAX: 0.58 )
RAX' s 10-Year Equity to Asset Range
Min: 0.29   Max: 0.58
Current: 0.58
0.29
0.58
Interest Coverage 36.4
RAX's Interest Coverage is ranked lower than
66% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 10000.00 vs. RAX: 36.4 )
RAX' s 10-Year Interest Coverage Range
Min: 2   Max: No Debt
Current: 36.4
F-Score: 7
Z-Score: 9.05
M-Score: -3.58
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 (%) 13.20
RAX's Operating margin (%) is ranked higher than
76% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.40 vs. RAX: 13.20 )
RAX' s 10-Year Operating margin (%) Range
Min: 1.9   Max: 13.9
Current: 13.2
1.9
13.9
Net-margin (%) 8.1
RAX's Net-margin (%) is ranked higher than
71% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.50 vs. RAX: 8.1 )
RAX' s 10-Year Net-margin (%) Range
Min: 0.4   Max: 8.8
Current: 8.1
0.4
8.8
ROE (%) 12.5
RAX's ROE (%) is ranked higher than
79% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.80 vs. RAX: 12.5 )
RAX' s 10-Year ROE (%) Range
Min: 1   Max: 28.1
Current: 12.5
1
28.1
ROA (%) 8.1
RAX's ROA (%) is ranked higher than
78% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.00 vs. RAX: 8.1 )
RAX' s 10-Year ROA (%) Range
Min: 0.5   Max: 14.9
Current: 8.1
0.5
14.9
ROC (Joel Greenblatt) (%) 25.90
RAX's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.20 vs. RAX: 25.90 )
RAX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 12.2   Max: 36.4
Current: 25.9
12.2
36.4
Revenue Growth (%) 17
RAX's Revenue Growth (%) is ranked higher than
91% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.20 vs. RAX: 17 )
RAX' s 10-Year Revenue Growth (%) Range
Min: 12.6   Max: 57.7
Current: 17
12.6
57.7
EBITDA Growth (%) 20.5
RAX's EBITDA Growth (%) is ranked higher than
93% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.90 vs. RAX: 20.5 )
RAX' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 200.9
Current: 20.5
0
200.9
EPS Growth (%) 33
RAX's EPS Growth (%) is ranked higher than
96% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.85 vs. RAX: 33 )
RAX' s 10-Year EPS Growth (%) Range
Min: 0   Max: 33
Current: 33
0
33
ยป RAX's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

RAX Guru Trades in Q2 2012

Steven Cohen 24,546 sh (New)
Paul Tudor Jones 7,300 sh (New)
Ron Baron 453,372 sh (+473.89%)
Jim Chanos 289,100 sh (+256.47%)
Jim Simons 807,700 sh (+239.08%)
Pioneer Investments 60,000 sh (+100%)
Louis Moore Bacon Sold Out
Jean-Marie Eveillard Sold Out
» More
Q3 2012

RAX Guru Trades in Q3 2012

Pioneer Investments 85,000 sh (+41.67%)
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
Ron Baron 446,762 sh (-1.46%)
Jim Chanos 176,000 sh (-39.12%)
Jim Simons 334,100 sh (-58.64%)
» More
Q4 2012

RAX Guru Trades in Q4 2012

Steven Cohen 273,325 sh (New)
Jim Chanos 175,700 sh (-0.17%)
Ron Baron 427,604 sh (-4.29%)
Pioneer Investments 70,000 sh (-17.65%)
Jim Simons 140,900 sh (-57.83%)
» More
Q1 2013

RAX Guru Trades in Q1 2013

Louis Moore Bacon 50,000 sh (New)
Jim Simons 822,800 sh (+483.96%)
Steve Mandel 200,000 sh (unchged)
Jim Chanos Sold Out
Pioneer Investments Sold Out
Ron Baron Sold Out
Steven Cohen 172,514 sh (-36.88%)
» More
» Details

Insider Trades

Latest Guru Trades with RAX

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-03-31 Sold Out 0.2%$49.74 - $79.24 $ 37.56-42%0
Ron Baron 2012-06-30 Add 473.89%0.11%$40.92 - $59.94 $ 37.56-27%453372
Jean-Marie Eveillard 2012-06-30 Sold Out $40.92 - $59.94 $ 37.56-27%0
Ron Baron 2011-12-31 New Buy0.03%$31.49 - $45.16 $ 37.56-8%88000
Jean-Marie Eveillard 2011-06-30 New Buy$38.24 - $46.19 $ 37.56-11%735
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Rackspace Hosting, Inc.

Baron Funds Comments on Rackspace Hosting - Aug 23, 2012

From Baron Funds' second quarter commentary:

Rackspace Hosting, Inc. (RAX) is a leading hosting and cloud computing service provider. Cloud computing describes a paradigm shift in the way IT infrastructure is built and consumed. Users can purchase only the computing, storage or networking capacity they need from a third party, paying for it monthly as a service, rather than buying and managing the equipment themselves โ€“ like we all pay the local utility only for the electricity we use rather than owning our own generators. Rackspace's business has been growing around 30%, and we expect it to grow 20-30% for many years to come. The stock pulled back because of increased investment spending and investor uncertainty around the company's rollout of its new cloud platform, OpenStack, which is set to go live on August 1st. We saw this as an opportunity to significantly increase our position.
Check out Ron Baron latest stock trades

Top Ranked Articles about Rackspace Hosting, Inc.

Baron Funds Comments on Rackspace Hosting
August 23, 2012
From Baron Funds' second quarter commentary: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 48.80
RAX's P/E(ttm) is ranked higher than
54% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 25.05 vs. RAX: 48.80 )
RAX' s 10-Year P/E(ttm) Range
Min: 23.89   Max: 124.84
Current: 48.8
23.89
124.84
P/B 6.20
RAX's P/B is ranked lower than
90% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. RAX: 6.20 )
RAX' s 10-Year P/B Range
Min: 2.07   Max: 13.36
Current: 6.2
2.07
13.36
P/S 3.89
RAX's P/S is ranked lower than
94% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.40 vs. RAX: 3.89 )
RAX' s 10-Year P/S Range
Min: 0.98   Max: 8.52
Current: 3.89
0.98
8.52
PFCF 41.60
RAX's PFCF is ranked lower than
76% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.41 vs. RAX: 41.60 )
RAX' s 10-Year PFCF Range
Min: 24.32   Max: 159.57
Current: 41.6
24.32
159.57
EV-to-EBIT 28.6
RAX's EV-to-EBIT is ranked higher than
76% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.35 vs. RAX: 28.6 )
RAX' s 10-Year EV-to-EBIT Range
Min: 15.5   Max: 72.5
Current: 28.6
15.5
72.5
PEG 1.8
RAX's PEG is ranked lower than
78% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.37 vs. RAX: 1.8 )
RAX' s 10-Year PEG Range
Min: 1.4   Max: 3.94
Current: 1.8
1.4
3.94
Shiller P/E 90.3
RAX's Shiller P/E is ranked higher than
87% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 22.91 vs. RAX: 90.3 )
RAX' s 10-Year Shiller P/E Range
Min: 90.3   Max: 207.71
Current: 90.3
90.3
207.71

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 76.7
RAX's Price/Net Current Asset Value is ranked higher than
99% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 13.80 vs. RAX: 76.7 )
RAX' s 10-Year Price/Net Current Asset Value Range
Min: 28.3   Max: 154.7
Current: 76.7
28.3
154.7
Price/Tangible Book 6.9
RAX's Price/Tangible Book is ranked higher than
94% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.85 vs. RAX: 6.9 )
RAX' s 10-Year Price/Tangible Book Range
Min: 2.5   Max: 14
Current: 6.9
2.5
14
Price/DCF (Projected) 3.6
RAX's Price/DCF (Projected) is ranked lower than
93% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.40 vs. RAX: 3.6 )
RAX' s 10-Year Price/DCF (Projected) Range
Min: 6.2   Max: 7.3
Current: 3.6
6.2
7.3
Price/Median PS Value 0.8
RAX's Price/Median PS Value is ranked higher than
92% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.80 vs. RAX: 0.8 )
RAX' s 10-Year Price/Median PS Value Range
Min: 0.2   Max: 1.6
Current: 0.8
0.2
1.6
Price/Peter Lynch Fair Value 2
RAX's Price/Peter Lynch Fair Value is ranked lower than
83% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. RAX: 2 )
RAX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 3.1   Max: 4
Current: 2
3.1
4
Price/Graham Number 4
RAX's Price/Graham Number is ranked higher than
97% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.20 vs. RAX: 4 )
RAX' s 10-Year Price/Graham Number Range
Min: 1.8   Max: 7.9
Current: 4
1.8
7.9
Earnings Yield (Greenblatt) 3.50
RAX's Earnings Yield (Greenblatt) is ranked lower than
94% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.80 vs. RAX: 3.50 )
RAX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.4   Max: 6.5
Current: 3.5
1.4
6.5
Forward Rate of Return (Yacktman) 26.14
RAX's Forward Rate of Return (Yacktman) is ranked lower than
74% of the 835 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.38 vs. RAX: 26.14 )
RAX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 26   Max: 52.3
Current: 26.14
26
52.3

Business Description

Rackspace Hosting, Inc. was incorporated in Delaware on March 7, 2000 under the name Rackspace.com, Inc. Its name was changed to Rackspace Hosting, Inc. on June 5, 2008 through a merger with one of its wholly-owned subsidiaries. The Company is a provider of hosting and cloud computing services. Cloud computing refers to pooled computing resources, delivered on-demand, over the Internet. In the same manner that electricity is delivered on-demand from scale power plants, cloud computing is delivered from large, centralized data centers to businesses all over the world. Cloud technologies allow hosting providers to effectively provision and manage a pool of computing resources across a base of customers. Cloud technologies deliver more computing resources to businesses when they need them. At the same time, cloud computing lowers the cost of IT services. The Company's ability to provide Hybrid Hosting, backed by Fanatical Support, provides it a competitive advantage in the hosting marketplace. It offers a portfolio of hosting services, including managed hosting, cloud hosting, and cloud application hosting. The equipment required to deliver services is typically purchased and managed by it. It sells its services to small and medium-sized businesses as well as enterprises. The Company's current and potential competitors vary by size and service offerings and by geographic region. The main competitive factors in its market are: customer service and technical expertise; security reliability and functionality; reputation and brand recognition; financial strength; breadth of services offered; and price. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.
Company Website
SEC Reports
Industry: Information Technology Services
Compare:
Traded in other countries:R42.Germany
ยป More Articles for RAX

Headlines

Articles On GuruFocus.com
The Best Cloud Computing Stocks to Consider Oct 29 2012 
Baron Funds Comments on Rackspace Hosting Aug 23 2012 
RACKSPACE HOSTING INC (RAX) CFO Bruce R Knooihuizen sells 50,000 Shares Mar 04 2011 
Weekly CEO Sells Highlight: HAWK, RAX, ATML, AN Feb 20 2011 
RACKSPACE HOSTING INC (RAX) CEO and President A Lanham Napier sells 455,000 Shares Feb 16 2011 
RACKSPACE HOSTING INC (RAX) COO Mark Roenigk sells 11,888 Shares Feb 16 2011 
RACKSPACE HOSTING INC (RAX) COO Mark Roenigk sells 8,310 Shares Dec 22 2010 
RACKSPACE HOSTING INC (RAX) CFO Bruce R Knooihuizen sells 50,000 Shares Dec 06 2010 
RACKSPACE HOSTING INC (RAX) CFO Bruce R Knooihuizen sells 50,000 Shares Sep 30 2010 
RACKSPACE HOSTING INC (RAX) CFO Bruce R Knooihuizen sells 38,100 Shares Apr 19 2010 

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