Switch to:

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 4.36
RAX's Cash to Debt is ranked higher than
66% of the 1738 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.49 vs. RAX: 4.36 )
RAX' s 10-Year Cash to Debt Range
Min: 0.19   Max: No Debt
Current: 4.36

Equity to Asset 0.71
RAX's Equity to Asset is ranked higher than
78% of the 1710 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.59 vs. RAX: 0.71 )
RAX' s 10-Year Equity to Asset Range
Min: 0.29   Max: 0.71
Current: 0.71

0.29
0.71
Interest Coverage 42.70
RAX's Interest Coverage is ranked higher than
54% of the 1136 Companies
in the Global Information Technology Services industry.

( Industry Median: 704.34 vs. RAX: 42.70 )
RAX' s 10-Year Interest Coverage Range
Min: 2   Max: 9999.99
Current: 42.7

2
9999.99
F-Score: 4
Z-Score: 8.24
M-Score: -3.45
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 (%) 7.71
RAX's Operating margin (%) is ranked higher than
75% of the 1732 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.56 vs. RAX: 7.71 )
RAX' s 10-Year Operating margin (%) Range
Min: 1.91   Max: 13.95
Current: 7.71

1.91
13.95
Net-margin (%) 5.12
RAX's Net-margin (%) is ranked higher than
72% of the 1732 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.80 vs. RAX: 5.12 )
RAX' s 10-Year Net-margin (%) Range
Min: 0.37   Max: 8.85
Current: 5.12

0.37
8.85
ROE (%) 8.10
RAX's ROE (%) is ranked higher than
72% of the 1695 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.72 vs. RAX: 8.10 )
RAX' s 10-Year ROE (%) Range
Min: 9.13   Max: 103.39
Current: 8.1

9.13
103.39
ROA (%) 5.64
RAX's ROA (%) is ranked higher than
76% of the 1746 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.73 vs. RAX: 5.64 )
RAX' s 10-Year ROA (%) Range
Min: 4.4   Max: 52.15
Current: 5.64

4.4
52.15
ROC (Joel Greenblatt) (%) 14.40
RAX's ROC (Joel Greenblatt) (%) is ranked higher than
63% of the 1740 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.64 vs. RAX: 14.40 )
RAX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 13.63   Max: 60.99
Current: 14.4

13.63
60.99
Revenue Growth (%) 22.40
RAX's Revenue Growth (%) is ranked higher than
92% of the 1461 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.40 vs. RAX: 22.40 )
RAX' s 10-Year Revenue Growth (%) Range
Min: 17.2   Max: 83.5
Current: 22.4

17.2
83.5
EBITDA Growth (%) 21.00
RAX's EBITDA Growth (%) is ranked higher than
84% of the 1181 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.50 vs. RAX: 21.00 )
RAX' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 334.4
Current: 21

0
334.4
EPS Growth (%) 20.30
RAX's EPS Growth (%) is ranked higher than
83% of the 1129 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.40 vs. RAX: 20.30 )
RAX' s 10-Year EPS Growth (%) Range
Min: 8.1   Max: 157.1
Current: 20.3

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 2013

RAX Guru Trades in Q3 2013

Mario Gabelli 5,000 sh (New)
Murray Stahl 6,299 sh (New)
Ray Dalio Sold Out
Jim Simons Sold Out
George Soros Sold Out
Steven Cohen 15,933 sh (-70.31%)
» More
Q4 2013

RAX Guru Trades in Q4 2013

RS Investment Management 58,400 sh (New)
Paul Tudor Jones 8,400 sh (New)
Steven Cohen 721,696 sh (+4429.57%)
Murray Stahl 14,223 sh (+125.8%)
Mario Gabelli 10,000 sh (+100%)
» More
Q1 2014

RAX Guru Trades in Q1 2014

Ray Dalio 86,810 sh (New)
Steven Cohen 3,314,872 sh (+359.32%)
Murray Stahl 23,854 sh (+67.71%)
Mario Gabelli 15,200 sh (+52%)
Paul Tudor Jones 10,800 sh (+28.57%)
RS Investment Management Sold Out
» More
Q2 2014

RAX Guru Trades in Q2 2014

RS Investment Management 529,778 sh (New)
Daniel Loeb 7,250,000 sh (New)
Jim Simons 400,900 sh (New)
George Soros 265,000 sh (New)
Steven Cohen 3,243,200 sh (unchged)
Murray Stahl 21,208 sh (-11.09%)
Mario Gabelli 9,200 sh (-39.47%)
Paul Tudor Jones 6,471 sh (-40.08%)
Ray Dalio 17,210 sh (-80.18%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Daniel Loeb 2014-06-30 New Buy3%$26.28 - $38.28 $ 35.88%7250000
George Soros 2014-06-30 New Buy0.07%$26.28 - $38.28 $ 35.88%265000
Ray Dalio 2014-06-30 Reduce -80.18%0.02%$26.28 - $38.28 $ 35.88%17210
Mario Gabelli 2014-06-30 Reduce -39.47%$26.28 - $38.28 $ 35.88%9200
Ray Dalio 2014-03-31 New Buy0.02%$31.26 - $40.36 $ 35.8-1%86810
Mario Gabelli 2014-03-31 Add 52%$31.26 - $40.36 $ 35.8-1%15200
Mario Gabelli 2013-12-31 Add 100%$33.19 - $53.5 $ 35.8-18%10000
George Soros 2013-09-30 Sold Out 0.1%$38.08 - $53.85 $ 35.8-22%0
Ray Dalio 2013-09-30 Sold Out $38.08 - $53.85 $ 35.8-22%0
Mario Gabelli 2013-09-30 New Buy$38.08 - $53.85 $ 35.8-22%5000
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Rackspace Hosting Inc

Baron Funds Comments on Rackspace Hosting Inc. - Jun 10, 2013

Rackspace Hosting, Inc. (RAX) is a leading hosting and cloud computing service provider. During the quarter, Rackspace completed the transition of its infrastructure to "Open Stack," an open-source cloud orchestration project initiated by Rackspace and NASA. This transition impacted core business growth, causing Rackspace to miss revenue expectations. We have high regard for the Rackspace management team, but decided to exit our position as we continue to assess Rackspace's competitive positioning in the rapidly evolving cloud computing service provider space. (Gilad Shany)

From Baron Funds’ first quarter 2013 commentary.
Check out Ron Baron latest stock trades

Top Ranked Articles about Rackspace Hosting Inc

Daniel Loeb's New Stocks
Dan Loeb is CEO of Third Point LLC, founded in 1995, where he oversees all investment activity. Third Point describes its underlying strategy as “event-driven, value-oriented,” and says it “seeks to identify situations where we anticipate a catalyst will unlock value,” on its website. Read more...
Weekly CEO Sells Highlight: US Silica Holdings Inc, Rackspace Hosting Inc, Activision Blizzard Inc, Macy’s Inc
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: US Silica Holdings Inc, Rackspace Hosting Inc, Activision Blizzard Inc, Macy’s Inc Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 59.90
RAX's P/E(ttm) is ranked higher than
66% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 45.10 vs. RAX: 59.90 )
RAX' s 10-Year P/E(ttm) Range
Min: 24.41   Max: 124.84
Current: 59.9

24.41
124.84
P/B 4.35
RAX's P/B is ranked higher than
58% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.60 vs. RAX: 4.35 )
RAX' s 10-Year P/B Range
Min: 1.97   Max: 12.9
Current: 4.35

1.97
12.9
P/S 3.08
RAX's P/S is ranked higher than
61% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.17 vs. RAX: 3.08 )
RAX' s 10-Year P/S Range
Min: 0.98   Max: 8.52
Current: 3.08

0.98
8.52
PFCF 80.89
RAX's PFCF is ranked higher than
75% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 80.89 )
RAX' s 10-Year PFCF Range
Min: 24.32   Max: 162.58
Current: 80.89

24.32
162.58
EV-to-EBIT 36.92
RAX's EV-to-EBIT is ranked higher than
68% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 30.16 vs. RAX: 36.92 )
RAX' s 10-Year EV-to-EBIT Range
Min: 14.5   Max: 71.7
Current: 36.92

14.5
71.7
PEG 2.58
RAX's PEG is ranked higher than
86% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 2.58 )
RAX' s 10-Year PEG Range
Min: 1.4   Max: 3.95
Current: 2.58

1.4
3.95
Shiller P/E 69.54
RAX's Shiller P/E is ranked higher than
79% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 69.54 )
RAX' s 10-Year Shiller P/E Range
Min: 53.63   Max: 207.71
Current: 69.54

53.63
207.71
Current Ratio 1.86
RAX's Current Ratio is ranked higher than
65% of the 1735 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. RAX: 1.86 )
RAX' s 10-Year Current Ratio Range
Min: 0.52   Max: 2.21
Current: 1.86

0.52
2.21
Quick Ratio 1.86
RAX's Quick Ratio is ranked higher than
68% of the 1735 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.78 vs. RAX: 1.86 )
RAX' s 10-Year Quick Ratio Range
Min: 0.52   Max: 2.21
Current: 1.86

0.52
2.21

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.76
RAX's Price/Tangible Book is ranked higher than
71% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.81 vs. RAX: 4.76 )
RAX' s 10-Year Price/Tangible Book Range
Min: 2.54   Max: 13.63
Current: 4.76

2.54
13.63
Price/DCF (Projected) 2.56
RAX's Price/DCF (Projected) is ranked higher than
76% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.24 vs. RAX: 2.56 )
RAX' s 10-Year Price/DCF (Projected) Range
Min: 2.42   Max: 7.79
Current: 2.56

2.42
7.79
Price/Median PS Value 0.75
RAX's Price/Median PS Value is ranked higher than
90% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.09 vs. RAX: 0.75 )
RAX' s 10-Year Price/Median PS Value Range
Min: 0.28   Max: 1.94
Current: 0.75

0.28
1.94
Price/Peter Lynch Fair Value 2.60
RAX's Price/Peter Lynch Fair Value is ranked higher than
88% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 2.60 )
RAX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2.02   Max: 3.96
Current: 2.6

2.02
3.96
Price/Graham Number 3.56
RAX's Price/Graham Number is ranked higher than
74% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.84 vs. RAX: 3.56 )
RAX' s 10-Year Price/Graham Number Range
Min: 1.81   Max: 8.15
Current: 3.56

1.81
8.15
Earnings Yield (Greenblatt) 2.70
RAX's Earnings Yield (Greenblatt) is ranked higher than
55% of the 1496 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.10 vs. RAX: 2.70 )
RAX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.4   Max: 6.9
Current: 2.7

1.4
6.9
Forward Rate of Return (Yacktman) 24.08
RAX's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 1331 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.70 vs. RAX: 24.08 )
RAX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.3   Max: 52.3
Current: 24.08

0.3
52.3

Business Description

Industry: Application Software » Information Technology Services
Compare: » details
Traded in other countries:R42.Germany
Rackspace Hosting, Inc. was incorporated in Delaware on March 7, 2000 under the name Rackspace.com, Inc. It is the open cloud company, delivering open technologies that power more than 200,000 business customers in 120 countries. The Company and other cloud computing companies free its business customers from much of the expense and hassle of owning and managing their own computer hardware and software. It offers a portfolio of cloud computing services, including Public, Dedicated and Private Cloud, and Hybrid Hosting. Public Cloud refers to pooled computing resources delivered on-demand over the Internet. Dedicated Cloud, also known as "managed hosting," refers to IT services that the company provide on a server or servers reserved for a specific customer. Private Cloud refers to a pool of computing resources that is virtualized for greater efficiency and nimbleness but that is dedicated to one particular customer rather than being used by multiple customers. Hybrid Hosting are pioneers in this emerging category, which allows a customer to easily and seamlessly utilize the benefits of both Dedicated Cloud and Public Cloud. Its service suite is sold via direct sales teams, through third-party channel partners and via online ordering. The Company's 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. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.
» More Articles for RAX

Headlines

Articles On GuruFocus.com
Activist Guru Dan Loeb Leaves His Mark in Many Ways Oct 03 2014 
Is This The Right Investment Choice? Let’s Find Out Sep 18 2014 
Daniel Loeb's New Stocks Aug 25 2014 
Why Rackspace's Recent Weakness Is a Buying Opportunity Aug 08 2014 
Weekly 3-Year Low Highlights: AVP, STAY, RAX, LDR, PFSI Mar 31 2014 
Book Review: Lessons From A Hedge Fund Manager Feb 20 2014 
Rackspace (RAX), One Of The Worst Investments Out There Dec 04 2013 
Weekly CEO Sells Highlight: US Silica Holdings Inc, Rackspace Hosting Inc, Activision Blizzard Inc, Nov 24 2013 
Weekly CEO Sells Highlight: Rackspace Hosting Inc, Twenty-First Century Fox Inc, Groupon Inc, Macy Nov 17 2013 
Is Digital Realty Trust Value Trap? Nov 01 2013 

More From Other Websites
Rackspace Accelerates Customers’ Journey to the Hybrid Cloud with Increased Security and... Oct 20 2014
Rackspace Accelerates Customers' Journey to the Hybrid Cloud With Increased Security and Scalability Oct 20 2014
Rackspace Accelerates Customers' Journey to the Hybrid Cloud With Increased Security and Scalability Oct 20 2014
Rackspace Delivers Bare Metal Speed and Memory Optimized Processing for Hadoop with Spark Oct 15 2014
Rackspace Delivers Bare Metal Speed and Memory Optimized Processing for Hadoop With Spark Oct 15 2014
Rackspace Delivers Bare Metal Speed and Memory Optimized Processing for Hadoop With Spark Oct 15 2014
Rackspace to Host Conference Call for Third Quarter 2014 Results Oct 13 2014
Rackspace Appoints Brian Kelly as Chief Security Officer Oct 09 2014
Kendra Scott Grows E-Commerce Business More Than 220 Percent With Rackspace Managed Cloud Oct 08 2014
Rackspace Announces Fanatical Support of Google Apps for Work Oct 07 2014
Great Cloud Server Reboot of 2014 Is Drama-less (So Far) Oct 02 2014
Is Your Staff, Like Netflix, Hopelessly Devoted To Amazon Web Services? Sep 30 2014
Rackspace Unveils Cloud Offering Powered by OpenStack Sep 30 2014
Amazon, Rackspace Reboots to Have Minimal Impact, Says RBC Sep 29 2014
Rackspace Launches Managed OpenStack Private Cloud to Deliver Industry Leading Guarantee and DevOps... Sep 25 2014
Rackspace Appoints Lila Tretikov to Board of Directors Sep 22 2014
RACKSPACE HOSTING, INC. Files SEC form 8-K, Change in Directors or Principal Officers, Financial... Sep 22 2014
Benefitfocus Appoints Lanham Napier to Its Board of Directors Sep 22 2014
Weakness Seen in Rackspace Hosting (RAX): Stock Plunges 17.7% Sep 18 2014
RACKSPACE HOSTING, INC. Files SEC form 8-K, Change in Directors or Principal Officers, Other Events,... Sep 18 2014

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK