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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 3.55
RAX's Cash to Debt is ranked higher than
66% of the 2118 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.93 vs. RAX: 3.55 )
RAX' s 10-Year Cash to Debt Range
Min: 0.19   Max: No Debt
Current: 3.55

Equity to Asset 0.71
RAX's Equity to Asset is ranked higher than
79% of the 2048 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.60 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
56% of the 1326 Companies
in the Global Information Technology Services industry.

( Industry Median: 1176.93 vs. RAX: 42.70 )
RAX' s 10-Year Interest Coverage Range
Min: 2   Max: 9999.99
Current: 42.7

2
9999.99
F-Score: 5
Z-Score: 9.75
M-Score: -3.48
WACC vs ROIC
14.53%
11.02%
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 (%) 8.13
RAX's Operating margin (%) is ranked higher than
81% of the 2100 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.37 vs. RAX: 8.13 )
RAX' s 10-Year Operating margin (%) Range
Min: 1.91   Max: 13.95
Current: 8.13

1.91
13.95
Net-margin (%) 5.46
RAX's Net-margin (%) is ranked higher than
78% of the 2100 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.67 vs. RAX: 5.46 )
RAX' s 10-Year Net-margin (%) Range
Min: 0.37   Max: 8.85
Current: 5.46

0.37
8.85
ROE (%) 8.52
RAX's ROE (%) is ranked higher than
79% of the 2033 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.20 vs. RAX: 8.52 )
RAX' s 10-Year ROE (%) Range
Min: 9.13   Max: 103.39
Current: 8.52

9.13
103.39
ROA (%) 5.99
RAX's ROA (%) is ranked higher than
82% of the 2126 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.37 vs. RAX: 5.99 )
RAX' s 10-Year ROA (%) Range
Min: 4.4   Max: 52.15
Current: 5.99

4.4
52.15
ROC (Joel Greenblatt) (%) 15.11
RAX's ROC (Joel Greenblatt) (%) is ranked higher than
67% of the 2105 Companies
in the Global Information Technology Services industry.

( Industry Median: 29.03 vs. RAX: 15.11 )
RAX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 13.63   Max: 60.99
Current: 15.11

13.63
60.99
Revenue Growth (3Y)(%) 22.40
RAX's Revenue Growth (3Y)(%) is ranked higher than
93% of the 1666 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.60 vs. RAX: 22.40 )
RAX' s 10-Year Revenue Growth (3Y)(%) Range
Min: 17.2   Max: 83.5
Current: 22.4

17.2
83.5
EBITDA Growth (3Y)(%) 21.00
RAX's EBITDA Growth (3Y)(%) is ranked higher than
87% of the 1378 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.20 vs. RAX: 21.00 )
RAX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 101.7
Current: 21

0
101.7
EPS Growth (3Y)(%) 20.30
RAX's EPS Growth (3Y)(%) is ranked higher than
85% of the 1261 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.90 vs. RAX: 20.30 )
RAX' s 10-Year EPS Growth (3Y)(%) 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

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

Jim Simons 400,900 sh (New)
RS Investment Management 529,778 sh (New)
Daniel Loeb 7,250,000 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
Q3 2014

RAX Guru Trades in Q3 2014

Julian Robertson 27,200 sh (New)
Jana Partners 7,004,977 sh (New)
Steven Cohen 4,673,600 sh (+44.1%)
Murray Stahl 26,409 sh (+24.52%)
Daniel Loeb Sold Out
Paul Tudor Jones Sold Out
George Soros Sold Out
Jim Simons Sold Out
Ray Dalio 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

Jim Simons 246,900 sh (New)
Joel Greenblatt 15,977 sh (New)
Paul Tudor Jones 5,784 sh (New)
RS Investment Management 1,476,378 sh (+183.37%)
Jana Partners 8,001,600 sh (+14.23%)
Julian Robertson Sold Out
Mario Gabelli Sold Out
Steven Cohen 4,069,000 sh (-12.94%)
Murray Stahl 17,780 sh (-32.67%)
» 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
Julian Robertson 2014-12-31 Sold Out 0.23%$32.8 - $48.24 $ 50.7522%0
Joel Greenblatt 2014-12-31 New Buy0.01%$32.8 - $48.24 $ 50.7522%15977
Mario Gabelli 2014-12-31 Sold Out $32.8 - $48.24 $ 50.7523%0
Daniel Loeb 2014-09-30 Sold Out 3%$29.5 - $39.79 $ 50.7553%0
Julian Robertson 2014-09-30 New Buy0.23%$29.5 - $39.79 $ 50.7553%27200
George Soros 2014-09-30 Sold Out 0.07%$29.5 - $39.79 $ 50.7553%0
Ray Dalio 2014-09-30 Sold Out $29.5 - $39.79 $ 50.7553%0
Mario Gabelli 2014-09-30 Reduce -26.09%$29.5 - $39.79 $ 50.7553%6800
Daniel Loeb 2014-06-30 New Buy3%$26.28 - $38.28 $ 50.7553%7250000
George Soros 2014-06-30 New Buy0.07%$26.28 - $38.28 $ 50.7553%265000
Ray Dalio 2014-06-30 Reduce -80.18%0.02%$26.28 - $38.28 $ 50.7553%17210
Mario Gabelli 2014-06-30 Reduce -39.47%$26.28 - $38.28 $ 50.7553%9200
Ray Dalio 2014-03-31 New Buy0.02%$31.26 - $40.36 $ 50.7541%86810
Mario Gabelli 2014-03-31 Add 52%$31.26 - $40.36 $ 50.7541%15200
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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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...

Ratios

vs
industry
vs
history
P/E(ttm) 76.60
RAX's P/E(ttm) is ranked higher than
70% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 56.70 vs. RAX: 76.60 )
RAX' s 10-Year P/E(ttm) Range
Min: 24.41   Max: 124.84
Current: 76.6

24.41
124.84
Forward P/E 37.88
RAX's Forward P/E is ranked higher than
82% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.00 vs. RAX: 37.88 )
N/A
PE(NRI) 76.70
RAX's PE(NRI) is ranked higher than
70% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 59.00 vs. RAX: 76.70 )
RAX' s 10-Year PE(NRI) Range
Min: 23.89   Max: 124.84
Current: 76.7

23.89
124.84
P/B 5.90
RAX's P/B is ranked higher than
57% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.32 vs. RAX: 5.90 )
RAX' s 10-Year P/B Range
Min: 1.97   Max: 12.9
Current: 5.9

1.97
12.9
P/S 4.20
RAX's P/S is ranked higher than
62% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.67 vs. RAX: 4.20 )
RAX' s 10-Year P/S Range
Min: 0.98   Max: 8.52
Current: 4.2

0.98
8.52
PFCF 145.00
RAX's PFCF is ranked higher than
72% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 102.32 vs. RAX: 145.00 )
RAX' s 10-Year PFCF Range
Min: 24.32   Max: 162.58
Current: 145

24.32
162.58
POCF 14.55
RAX's POCF is ranked higher than
83% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 28.43 vs. RAX: 14.55 )
RAX' s 10-Year POCF Range
Min: 2.78   Max: 27.89
Current: 14.55

2.78
27.89
EV-to-EBIT 44.86
RAX's EV-to-EBIT is ranked higher than
70% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 36.34 vs. RAX: 44.86 )
RAX' s 10-Year EV-to-EBIT Range
Min: 14.5   Max: 71.7
Current: 44.86

14.5
71.7
PEG 3.20
RAX's PEG is ranked higher than
89% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.00 vs. RAX: 3.20 )
RAX' s 10-Year PEG Range
Min: 1.44   Max: 3.46
Current: 3.2

1.44
3.46
Shiller P/E 95.10
RAX's Shiller P/E is ranked higher than
79% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.00 vs. RAX: 95.10 )
RAX' s 10-Year Shiller P/E Range
Min: 53.63   Max: 207.71
Current: 95.1

53.63
207.71
Current Ratio 1.95
RAX's Current Ratio is ranked higher than
69% of the 2080 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.88 vs. RAX: 1.95 )
RAX' s 10-Year Current Ratio Range
Min: 0.52   Max: 2.21
Current: 1.95

0.52
2.21
Quick Ratio 1.95
RAX's Quick Ratio is ranked higher than
71% of the 2080 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.77 vs. RAX: 1.95 )
RAX' s 10-Year Quick Ratio Range
Min: 0.52   Max: 2.21
Current: 1.95

0.52
2.21
Days Sales Outstanding 28.39
RAX's Days Sales Outstanding is ranked higher than
95% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 84.50 vs. RAX: 28.39 )
RAX' s 10-Year Days Sales Outstanding Range
Min: 21.22   Max: 29.47
Current: 28.39

21.22
29.47

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 6.50
RAX's Price/Tangible Book is ranked higher than
69% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.39 vs. RAX: 6.50 )
RAX' s 10-Year Price/Tangible Book Range
Min: 2.54   Max: 13.63
Current: 6.5

2.54
13.63
Price/DCF (Projected) 3.50
RAX's Price/DCF (Projected) is ranked higher than
77% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.56 vs. RAX: 3.50 )
RAX' s 10-Year Price/DCF (Projected) Range
Min: 2.27   Max: 7.79
Current: 3.5

2.27
7.79
Price/Median PS Value 1.00
RAX's Price/Median PS Value is ranked higher than
82% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.28 vs. RAX: 1.00 )
RAX' s 10-Year Price/Median PS Value Range
Min: 0.29   Max: 1.99
Current: 1

0.29
1.99
Price/Peter Lynch Fair Value 3.50
RAX's Price/Peter Lynch Fair Value is ranked higher than
89% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.00 vs. RAX: 3.50 )
RAX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 2.02   Max: 3.96
Current: 3.5

2.02
3.96
Price/Graham Number 4.70
RAX's Price/Graham Number is ranked higher than
76% of the 2303 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.38 vs. RAX: 4.70 )
RAX' s 10-Year Price/Graham Number Range
Min: 1.81   Max: 8.15
Current: 4.7

1.81
8.15
Earnings Yield (Greenblatt) 2.20
RAX's Earnings Yield (Greenblatt) is ranked higher than
67% of the 2102 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.40 vs. RAX: 2.20 )
RAX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.4   Max: 6.9
Current: 2.2

1.4
6.9
Forward Rate of Return (Yacktman) 23.32
RAX's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1125 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.92 vs. RAX: 23.32 )
RAX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.5   Max: 43.6
Current: 23.32

0.5
43.6

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. 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 Cloud, Dedicated, Private Cloud, and Hybrid Cloud. Public Cloud refers to pooled computing resources delivered on-demand over the Internet. Virtualization and other cloud technologies allows it to effectively provision and manage a pool of computing resources across a larger base of customers and deliver more resources to businesses when they need them. Dedicated Cloud, also known as "managed hosting," refers to IT services that it provides on a server or servers reserved for a specific customer. Its customers have full administrator privileges and are responsible for administrative functions. It provides a customer management portal and other management tools. This service frees the customer from the burden of managing the data center, network, hardware devices, and operating system software. 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. The hardware can be located in the data centers or in the customer's facilities. This approach is especially popular with some of the larger corporate customers. Hybrid Cloud allows a customer to easily and seamlessly utilize the benefits of both dedicated cloud and public cloud. It is also working to add private cloud to the technologies available. A customer using hybrid cloud is able to utilize any combination of dedicated and pooled resources and to manage them seamlessly through the RackConnect service. Each cloud computing form factor has specific and unique customer benefits, and through hybrid cloud, the various technologies can be combined and adjusted to address each customer's changing and diverse needs. 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

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Weekly CFO Sells Highlight: Home Depot Inc, Rackspace Hosting Inc, Aon PLC Mar 01 2015 
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A Few Reasons to Invest in Rackspace for the Long Run Dec 31 2014 
Rackspace Holdings' Attractive Growth Makes It a Good Investment Dec 12 2014 
Rackspace Uses Zenoss to Manage Its Superior Network Infrastructure Nov 13 2014 
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 

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