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Also traded in: Germany

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 : 6/10

vs
industry
vs
history
Cash to Debt 0.82
RAX's Cash to Debt is ranked lower than
76% of the 1865 Companies
in the Global Information Technology Services industry.

( Industry Median: 11.22 vs. RAX: 0.82 )
Ranked among companies with meaningful Cash to Debt only.
RAX' s Cash to Debt Range Over the Past 10 Years
Min: 0.19  Med: 1.22 Max: N/A
Current: 0.82
Equity to Asset 0.48
RAX's Equity to Asset is ranked lower than
66% of the 1764 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 vs. RAX: 0.48 )
Ranked among companies with meaningful Equity to Asset only.
RAX' s Equity to Asset Range Over the Past 10 Years
Min: 0.29  Med: 0.58 Max: 0.71
Current: 0.48
0.29
0.71
Interest Coverage 10.76
RAX's Interest Coverage is ranked lower than
74% of the 1274 Companies
in the Global Information Technology Services industry.

( Industry Median: 60.06 vs. RAX: 10.76 )
Ranked among companies with meaningful Interest Coverage only.
RAX' s Interest Coverage Range Over the Past 10 Years
Min: 4.88  Med: 18.56 Max: 42.19
Current: 10.76
4.88
42.19
F-Score: 7
Z-Score: 3.50
M-Score: -3.76
WACC vs ROIC
13.28%
14.03%
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 : 8/10

vs
industry
vs
history
Operating margin (%) 11.61
RAX's Operating margin (%) is ranked higher than
74% of the 1810 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.89 vs. RAX: 11.61 )
Ranked among companies with meaningful Operating margin (%) only.
RAX' s Operating margin (%) Range Over the Past 10 Years
Min: 7.55  Med: 9.41 Max: 13.95
Current: 11.61
7.55
13.95
Net-margin (%) 7.00
RAX's Net-margin (%) is ranked higher than
67% of the 1810 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.19 vs. RAX: 7.00 )
Ranked among companies with meaningful Net-margin (%) only.
RAX' s Net-margin (%) Range Over the Past 10 Years
Min: 4.08  Med: 5.97 Max: 8.85
Current: 7
4.08
8.85
ROE (%) 13.26
RAX's ROE (%) is ranked higher than
72% of the 1757 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.50 vs. RAX: 13.26 )
Ranked among companies with meaningful ROE (%) only.
RAX' s ROE (%) Range Over the Past 10 Years
Min: 8.98  Med: 11.93 Max: 56.23
Current: 13.26
8.98
56.23
ROA (%) 7.66
RAX's ROA (%) is ranked higher than
74% of the 1863 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.73 vs. RAX: 7.66 )
Ranked among companies with meaningful ROA (%) only.
RAX' s ROA (%) Range Over the Past 10 Years
Min: 4.4  Med: 6.83 Max: 29.81
Current: 7.66
4.4
29.81
ROC (Joel Greenblatt) (%) 21.20
RAX's ROC (Joel Greenblatt) (%) is ranked higher than
50% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.22 vs. RAX: 21.20 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RAX' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 13.89  Med: 17.62 Max: 62.11
Current: 21.2
13.89
62.11
Revenue Growth (3Y)(%) 15.30
RAX's Revenue Growth (3Y)(%) is ranked higher than
77% of the 1441 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.90 vs. RAX: 15.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RAX' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 15.3  Med: 22.40 Max: 83.3
Current: 15.3
15.3
83.3
EBITDA Growth (3Y)(%) 12.50
RAX's EBITDA Growth (3Y)(%) is ranked higher than
60% of the 1170 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.70 vs. RAX: 12.50 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RAX' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 26.50 Max: 103.4
Current: 12.5
0
103.4
EPS Growth (3Y)(%) 5.10
RAX's EPS Growth (3Y)(%) is ranked lower than
54% of the 1068 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.50 vs. RAX: 5.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RAX' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 5.1  Med: 20.00 Max: 166.3
Current: 5.1
5.1
166.3
» RAX's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-08-10)


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

» Details

Guru Trades

Q2 2015

RAX Guru Trades in Q2 2015

Paul Tudor Jones 60,835 sh (New)
Lee Ainslie 6,560 sh (New)
John Hussman 175,000 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%)
Steven Cohen 581,400 sh (-68.32%)
» More
Q3 2015

RAX Guru Trades in Q3 2015

Paul Tudor Jones 86,737 sh (+42.58%)
Lee Ainslie Sold Out
Joel Greenblatt Sold Out
Steven Cohen Sold Out
RS Investment Management Sold Out
Murray Stahl 24,159 sh (-0.58%)
Jim Simons 1,260,800 sh (-3.31%)
John Hussman 50,000 sh (-71.43%)
Jana Partners 1,815,393 sh (-83.50%)
» More
Q4 2015

RAX Guru Trades in Q4 2015

Joel Greenblatt 10,541 sh (New)
Louis Moore Bacon 250,000 sh (New)
Jana Partners Sold Out
John Hussman Sold Out
Murray Stahl 23,503 sh (-2.72%)
Paul Tudor Jones 64,194 sh (-25.99%)
Jim Simons 679,900 sh (-46.07%)
» More
Q1 2016

RAX Guru Trades in Q1 2016

RS Investment Management 61,900 sh (New)
Joel Greenblatt 371,191 sh (+3421.40%)
Murray Stahl 24,327 sh (+3.51%)
Louis Moore Bacon Sold Out
Paul Tudor Jones 60,864 sh (-5.19%)
Jim Simons 544,400 sh (-19.93%)
» 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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Business Description

Industry: Application Software » Information Technology Services
Compare:NYSE:SAIC, OTCPK:ITTOY, OTCPK:ALTKY, OTCPK:MDDWF, NYSE:EPAM, NYSE:CACI, NYSE:LDOS, NAS:SYNT, OTCPK:CMSQY, NYSE:NCR, NAS:ACXM, NYSE:CSRA, NYSE:GLOB, NAS:SYKE, OTCPK:ALLWF, NAS:NSIT, OTCPK:PXGYF, NAS:VNET, NAS:VRTU, OTCPK:DCHIF » details
Traded in other countries:R42.Germany,
Rackspace Hosting Inc, 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.

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.

Ratios

vs
industry
vs
history
P/E(ttm) 22.47
RAX's P/E(ttm) is ranked higher than
53% of the 1361 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.78 vs. RAX: 22.47 )
Ranked among companies with meaningful P/E(ttm) only.
RAX' s P/E(ttm) Range Over the Past 10 Years
Min: 19.35  Med: 65.60 Max: 124.84
Current: 22.47
19.35
124.84
Forward P/E 23.36
RAX's Forward P/E is ranked lower than
56% of the 353 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.51 vs. RAX: 23.36 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 22.47
RAX's PE(NRI) is ranked higher than
54% of the 1241 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.26 vs. RAX: 22.47 )
Ranked among companies with meaningful PE(NRI) only.
RAX' s PE(NRI) Range Over the Past 10 Years
Min: 19.35  Med: 65.60 Max: 124.84
Current: 22.47
19.35
124.84
Price/Owner Earnings (ttm) 13.36
RAX's Price/Owner Earnings (ttm) is ranked higher than
74% of the 726 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.14 vs. RAX: 13.36 )
Ranked among companies with meaningful Price/Owner Earnings (ttm) only.
RAX' s Price/Owner Earnings (ttm) Range Over the Past 10 Years
Min: 11.5  Med: 30.69 Max: 60.71
Current: 13.36
11.5
60.71
P/B 3.07
RAX's P/B is ranked lower than
54% of the 1976 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.76 vs. RAX: 3.07 )
Ranked among companies with meaningful P/B only.
RAX' s P/B Range Over the Past 10 Years
Min: 1.97  Med: 6.21 Max: 12.89
Current: 3.07
1.97
12.89
P/S 1.59
RAX's P/S is ranked higher than
60% of the 2022 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.24 vs. RAX: 1.59 )
Ranked among companies with meaningful P/S only.
RAX' s P/S Range Over the Past 10 Years
Min: 0.97  Med: 3.73 Max: 8.49
Current: 1.59
0.97
8.49
PFCF 24.52
RAX's PFCF is ranked lower than
51% of the 743 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.11 vs. RAX: 24.52 )
Ranked among companies with meaningful PFCF only.
RAX' s PFCF Range Over the Past 10 Years
Min: 21.11  Med: 59.14 Max: 163.57
Current: 24.52
21.11
163.57
POCF 5.46
RAX's POCF is ranked higher than
90% of the 946 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.33 vs. RAX: 5.46 )
Ranked among companies with meaningful POCF only.
RAX' s POCF Range Over the Past 10 Years
Min: 3.76  Med: 12.32 Max: 27.85
Current: 5.46
3.76
27.85
EV-to-EBIT 12.78
RAX's EV-to-EBIT is ranked higher than
62% of the 1333 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.49 vs. RAX: 12.78 )
Ranked among companies with meaningful EV-to-EBIT only.
RAX' s EV-to-EBIT Range Over the Past 10 Years
Min: 11.5  Med: 40.20 Max: 72.8
Current: 12.78
11.5
72.8
EV-to-EBITDA 4.73
RAX's EV-to-EBITDA is ranked higher than
86% of the 1449 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.53 vs. RAX: 4.73 )
Ranked among companies with meaningful EV-to-EBITDA only.
RAX' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.3  Med: 12.80 Max: 26
Current: 4.73
4.3
26
PEG 1.24
RAX's PEG is ranked higher than
65% of the 553 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 1.24 )
Ranked among companies with meaningful PEG only.
RAX' s PEG Range Over the Past 10 Years
Min: 1.14  Med: 2.48 Max: 4.59
Current: 1.24
1.14
4.59
Shiller P/E 44.75
RAX's Shiller P/E is ranked lower than
59% of the 286 Companies
in the Global Information Technology Services industry.

( Industry Median: 36.60 vs. RAX: 44.75 )
Ranked among companies with meaningful Shiller P/E only.
RAX' s Shiller P/E Range Over the Past 10 Years
Min: 36.73  Med: 43.83 Max: 58.81
Current: 44.75
36.73
58.81
Current Ratio 3.17
RAX's Current Ratio is ranked higher than
72% of the 1711 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.94 vs. RAX: 3.17 )
Ranked among companies with meaningful Current Ratio only.
RAX' s Current Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.40 Max: 3.17
Current: 3.17
0.52
3.17
Quick Ratio 3.17
RAX's Quick Ratio is ranked higher than
74% of the 1711 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.83 vs. RAX: 3.17 )
Ranked among companies with meaningful Quick Ratio only.
RAX' s Quick Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.40 Max: 3.17
Current: 3.17
0.52
3.17
Days Sales Outstanding 30.59
RAX's Days Sales Outstanding is ranked higher than
87% of the 1493 Companies
in the Global Information Technology Services industry.

( Industry Median: 68.62 vs. RAX: 30.59 )
Ranked among companies with meaningful Days Sales Outstanding only.
RAX' s Days Sales Outstanding Range Over the Past 10 Years
Min: 21.22  Med: 25.77 Max: 31.83
Current: 30.59
21.22
31.83

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.37
RAX's Price/Tangible Book is ranked higher than
55% of the 1667 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.20 vs. RAX: 3.37 )
Ranked among companies with meaningful Price/Tangible Book only.
RAX' s Price/Tangible Book Range Over the Past 10 Years
Min: 2.54  Med: 6.86 Max: 13.63
Current: 3.37
2.54
13.63
Price/Projected FCF 1.39
RAX's Price/Projected FCF is ranked higher than
64% of the 929 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.75 vs. RAX: 1.39 )
Ranked among companies with meaningful Price/Projected FCF only.
RAX' s Price/Projected FCF Range Over the Past 10 Years
Min: 1.28  Med: 3.34 Max: 7.27
Current: 1.39
1.28
7.27
Price/Median PS Value 0.42
RAX's Price/Median PS Value is ranked higher than
93% of the 1860 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. RAX: 0.42 )
Ranked among companies with meaningful Price/Median PS Value only.
RAX' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.31  Med: 1.01 Max: 2.14
Current: 0.42
0.31
2.14
Price/Peter Lynch Fair Value 1.33
RAX's Price/Peter Lynch Fair Value is ranked higher than
60% of the 368 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.65 vs. RAX: 1.33 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
RAX' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 1.23  Med: 2.62 Max: 4.32
Current: 1.33
1.23
4.32
Price/Graham Number 1.83
RAX's Price/Graham Number is ranked higher than
55% of the 1041 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.10 vs. RAX: 1.83 )
Ranked among companies with meaningful Price/Graham Number only.
RAX' s Price/Graham Number Range Over the Past 10 Years
Min: 1.69  Med: 4.58 Max: 8.35
Current: 1.83
1.69
8.35
Earnings Yield (Greenblatt) (%) 7.80
RAX's Earnings Yield (Greenblatt) (%) is ranked higher than
75% of the 2116 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.26 vs. RAX: 7.80 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RAX' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 1.4  Med: 2.50 Max: 8.7
Current: 7.8
1.4
8.7
Forward Rate of Return (Yacktman) (%) 19.78
RAX's Forward Rate of Return (Yacktman) (%) is ranked higher than
73% of the 726 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.04 vs. RAX: 19.78 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
RAX' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: 0.5  Med: 23.80 Max: 42.3
Current: 19.78
0.5
42.3

More Statistics

Revenue (TTM) (Mil) $2,039
EPS (TTM) $ 1.04
Beta1.77
Short Percentage of Float16.52%
52-Week Range $15.05 - 36.55
Shares Outstanding (Mil)125.66

Analyst Estimate


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Dec16 Dec17 Dec18
Revenue (Mil $) 2,122 2,283 2,535
EPS ($) 1.00 1.20 1.35
EPS w/o NRI ($) 1.00 1.20 1.35
EPS Growth Rate
(3Y to 5Y Estimate)
N/A
Dividends Per Share ($)
» More Articles for RAX

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