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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 0.84
RAX's Cash to Debt is ranked lower than
75% of the 1887 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.32 vs. RAX: 0.84 )
Ranked among companies with meaningful Cash to Debt only.
RAX' s Cash to Debt Range Over the Past 10 Years
Min: 0.19  Med: 1.15 Max: N/A
Current: 0.84
Equity to Asset 0.48
RAX's Equity to Asset is ranked lower than
66% of the 1730 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 9.02
RAX's Interest Coverage is ranked lower than
80% of the 1440 Companies
in the Global Information Technology Services industry.

( Industry Median: 170.89 vs. RAX: 9.02 )
Ranked among companies with meaningful Interest Coverage only.
RAX' s Interest Coverage Range Over the Past 10 Years
Min: 4.88  Med: 24.82 Max: No Debt
Current: 9.02
F-Score: 6
Z-Score: 4.19
M-Score: -3.83
WACC vs ROIC
13.86%
15.43%
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 (%) 12.71
RAX's Operating margin (%) is ranked higher than
76% of the 1829 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.63 vs. RAX: 12.71 )
Ranked among companies with meaningful Operating margin (%) only.
RAX' s Operating margin (%) Range Over the Past 10 Years
Min: 7.55  Med: 8.82 Max: 13.95
Current: 12.71
7.55
13.95
Net-margin (%) 7.39
RAX's Net-margin (%) is ranked higher than
68% of the 1829 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.12 vs. RAX: 7.39 )
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: 7.39
4.08
8.85
ROE (%) 14.73
RAX's ROE (%) is ranked higher than
75% of the 1780 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.57 vs. RAX: 14.73 )
Ranked among companies with meaningful ROE (%) only.
RAX' s ROE (%) Range Over the Past 10 Years
Min: 8.98  Med: 13.23 Max: 103.39
Current: 14.73
8.98
103.39
ROA (%) 7.96
RAX's ROA (%) is ranked higher than
75% of the 1890 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.71 vs. RAX: 7.96 )
Ranked among companies with meaningful ROA (%) only.
RAX' s ROA (%) Range Over the Past 10 Years
Min: 4.4  Med: 7.56 Max: 52.15
Current: 7.96
4.4
52.15
ROC (Joel Greenblatt) (%) 23.36
RAX's ROC (Joel Greenblatt) (%) is ranked higher than
51% of the 1855 Companies
in the Global Information Technology Services industry.

( Industry Median: 20.90 vs. RAX: 23.36 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RAX' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 13.89  Med: 17.11 Max: 62.11
Current: 23.36
13.89
62.11
Revenue Growth (3Y)(%) 18.70
RAX's Revenue Growth (3Y)(%) is ranked higher than
82% of the 1444 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.00 vs. RAX: 18.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RAX' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 17.2  Med: 22.9 Max: 83.3
Current: 18.7
17.2
83.3
EBITDA Growth (3Y)(%) 16.80
RAX's EBITDA Growth (3Y)(%) is ranked higher than
67% of the 1178 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.90 vs. RAX: 16.80 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RAX' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 27.4 Max: 103.4
Current: 16.8
0
103.4
EPS Growth (3Y)(%) 10.40
RAX's EPS Growth (3Y)(%) is ranked higher than
55% of the 1073 Companies
in the Global Information Technology Services industry.

( Industry Median: 7.40 vs. RAX: 10.40 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RAX' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 8.1  Med: 23.6 Max: 166.3
Current: 10.4
8.1
166.3
» RAX's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-11-09)


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

» Details

Guru Trades

Q3 2015

RAX Guru Trades in Q3 2015

Paul Tudor Jones 86,737 sh (+42.58%)
Joel Greenblatt Sold Out
RS Investment Management Sold Out
Steven Cohen Sold Out
Lee Ainslie 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
Q2 2016

RAX Guru Trades in Q2 2016

First Eagle Investment 123,500 sh (New)
Steven Cohen 66,400 sh (New)
Joel Greenblatt 810,183 sh (+118.27%)
Jim Simons 712,700 sh (+30.91%)
Paul Tudor Jones 76,764 sh (+26.12%)
Murray Stahl 19,144 sh (-21.31%)
RS Investment Management 48,260 sh (-22.04%)
» 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:NAS:SYNT, OTCPK:CMSQF, NYSE:CSRA, NYSE:NCR, NYSE:EPAM, NYSE:LDOS, OTCPK:ITTOY, NYSE:SAIC, OTCPK:MDDWF, OTCPK:ALTKY, NYSE:CACI, OTCPK:TSYHY, NAS:ACXM, NYSE:CSC, OTCPK:NIPNF, NYSE:GLOB, NAS:SYKE, NAS:NSIT, OTCPK:CUUCF, NAS:VNET » 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) 28.09
RAX's P/E(ttm) is ranked lower than
57% of the 1206 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.23 vs. RAX: 28.09 )
Ranked among companies with meaningful P/E(ttm) only.
RAX' s P/E(ttm) Range Over the Past 10 Years
Min: 18.73  Med: 65.53 Max: 124.84
Current: 28.09
18.73
124.84
Forward P/E 31.75
RAX's Forward P/E is ranked lower than
73% of the 285 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.51 vs. RAX: 31.75 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 28.09
RAX's PE(NRI) is ranked lower than
56% of the 1206 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.29 vs. RAX: 28.09 )
Ranked among companies with meaningful PE(NRI) only.
RAX' s PE(NRI) Range Over the Past 10 Years
Min: 18.73  Med: 65.53 Max: 124.84
Current: 28.09
18.73
124.84
Price/Owner Earnings (ttm) 15.32
RAX's Price/Owner Earnings (ttm) is ranked higher than
71% of the 700 Companies
in the Global Information Technology Services industry.

( Industry Median: 23.31 vs. RAX: 15.32 )
Ranked among companies with meaningful Price/Owner Earnings (ttm) only.
RAX' s Price/Owner Earnings (ttm) Range Over the Past 10 Years
Min: 10.19  Med: 30.56 Max: 60.71
Current: 15.32
10.19
60.71
P/B 4.15
RAX's P/B is ranked lower than
65% of the 1682 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.74 vs. RAX: 4.15 )
Ranked among companies with meaningful P/B only.
RAX' s P/B Range Over the Past 10 Years
Min: 1.97  Med: 6.13 Max: 12.89
Current: 4.15
1.97
12.89
P/S 2.04
RAX's P/S is ranked higher than
51% of the 1763 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.10 vs. RAX: 2.04 )
Ranked among companies with meaningful P/S only.
RAX' s P/S Range Over the Past 10 Years
Min: 0.97  Med: 3.7 Max: 8.49
Current: 2.04
0.97
8.49
PFCF 20.68
RAX's PFCF is ranked higher than
58% of the 645 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.13 vs. RAX: 20.68 )
Ranked among companies with meaningful PFCF only.
RAX' s PFCF Range Over the Past 10 Years
Min: 13.79  Med: 57.99 Max: 163.57
Current: 20.68
13.79
163.57
POCF 6.66
RAX's POCF is ranked higher than
87% of the 814 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.00 vs. RAX: 6.66 )
Ranked among companies with meaningful POCF only.
RAX' s POCF Range Over the Past 10 Years
Min: 3.76  Med: 12.23 Max: 27.85
Current: 6.66
3.76
27.85
EV-to-EBIT 15.42
RAX's EV-to-EBIT is ranked higher than
54% of the 1177 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.80 vs. RAX: 15.42 )
Ranked among companies with meaningful EV-to-EBIT only.
RAX' s EV-to-EBIT Range Over the Past 10 Years
Min: 10.5  Med: 40.1 Max: 72.8
Current: 15.42
10.5
72.8
EV-to-EBITDA 6.00
RAX's EV-to-EBITDA is ranked higher than
80% of the 1271 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.69 vs. RAX: 6.00 )
Ranked among companies with meaningful EV-to-EBITDA only.
RAX' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.1  Med: 12.8 Max: 26
Current: 6
4.1
26
PEG 1.33
RAX's PEG is ranked higher than
62% of the 563 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.90 vs. RAX: 1.33 )
Ranked among companies with meaningful PEG only.
RAX' s PEG Range Over the Past 10 Years
Min: 1.12  Med: 2.46 Max: 4.59
Current: 1.33
1.12
4.59
Shiller P/E 57.83
RAX's Shiller P/E is ranked lower than
68% of the 290 Companies
in the Global Information Technology Services industry.

( Industry Median: 36.95 vs. RAX: 57.83 )
Ranked among companies with meaningful Shiller P/E only.
RAX' s Shiller P/E Range Over the Past 10 Years
Min: 36.73  Med: 43.39 Max: 58.81
Current: 57.83
36.73
58.81
Current Ratio 3.11
RAX's Current Ratio is ranked higher than
72% of the 1723 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.96 vs. RAX: 3.11 )
Ranked among companies with meaningful Current Ratio only.
RAX' s Current Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.42 Max: 3.17
Current: 3.11
0.52
3.17
Quick Ratio 3.11
RAX's Quick Ratio is ranked higher than
73% of the 1723 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.82 vs. RAX: 3.11 )
Ranked among companies with meaningful Quick Ratio only.
RAX' s Quick Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.42 Max: 3.17
Current: 3.11
0.52
3.17
Days Sales Outstanding 29.68
RAX's Days Sales Outstanding is ranked higher than
88% of the 1430 Companies
in the Global Information Technology Services industry.

( Industry Median: 67.60 vs. RAX: 29.68 )
Ranked among companies with meaningful Days Sales Outstanding only.
RAX' s Days Sales Outstanding Range Over the Past 10 Years
Min: 21.22  Med: 25.66 Max: 31.83
Current: 29.68
21.22
31.83

Buy Back

vs
industry
vs
history
Yield on cost (5-Year) 0.30
RAX's Yield on cost (5-Year) is ranked lower than
92% of the 1440 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.16 vs. RAX: 0.30 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
RAX' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0
Current: 0.3
3-Year Average Share Buyback Ratio -2.30
RAX's 3-Year Average Share Buyback Ratio is ranked higher than
51% of the 1148 Companies
in the Global Information Technology Services industry.

( Industry Median: -2.50 vs. RAX: -2.30 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
RAX' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -5.6  Med: -4.3 Max: -1.2
Current: -2.3
-5.6
-1.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.53
RAX's Price/Tangible Book is ranked lower than
52% of the 1407 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.17 vs. RAX: 4.53 )
Ranked among companies with meaningful Price/Tangible Book only.
RAX' s Price/Tangible Book Range Over the Past 10 Years
Min: 2.54  Med: 6.83 Max: 13.63
Current: 4.53
2.54
13.63
Price/Projected FCF 1.70
RAX's Price/Projected FCF is ranked higher than
53% of the 813 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.78 vs. RAX: 1.70 )
Ranked among companies with meaningful Price/Projected FCF only.
RAX' s Price/Projected FCF Range Over the Past 10 Years
Min: 1.13  Med: 3.32 Max: 7.27
Current: 1.7
1.13
7.27
Price/Median PS Value 0.55
RAX's Price/Median PS Value is ranked higher than
89% of the 1602 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.11 vs. RAX: 0.55 )
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: 2.16
Current: 0.55
0.31
2.16
Price/Peter Lynch Fair Value 1.67
RAX's Price/Peter Lynch Fair Value is ranked higher than
51% of the 336 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.73 vs. RAX: 1.67 )
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: 1.11  Med: 2.62 Max: 4.32
Current: 1.67
1.11
4.32
Price/Graham Number 2.38
RAX's Price/Graham Number is ranked lower than
54% of the 854 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.19 vs. RAX: 2.38 )
Ranked among companies with meaningful Price/Graham Number only.
RAX' s Price/Graham Number Range Over the Past 10 Years
Min: 1.58  Med: 4.46 Max: 8.35
Current: 2.38
1.58
8.35
Earnings Yield (Greenblatt) (%) 6.50
RAX's Earnings Yield (Greenblatt) (%) is ranked higher than
70% of the 1823 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.40 vs. RAX: 6.50 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RAX' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 1.4  Med: 2.5 Max: 9.5
Current: 6.5
1.4
9.5
Forward Rate of Return (Yacktman) (%) 19.18
RAX's Forward Rate of Return (Yacktman) (%) is ranked higher than
74% of the 725 Companies
in the Global Information Technology Services industry.

( Industry Median: 9.90 vs. RAX: 19.18 )
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: 23.75 Max: 42.3
Current: 19.18
0.5
42.3

More Statistics

Revenue (TTM) (Mil) $2,073
EPS (TTM) $ 1.12
Beta1.68
Short Percentage of Float14.81%
52-Week Range $15.05 - 32.14
Shares Outstanding (Mil)125.81

Analyst Estimate

Dec16 Dec17 Dec18
Revenue (Mil $) 2,085 2,220 2,375
EPS ($) 0.95 1.23 1.53
EPS w/o NRI ($) 0.95 1.23 1.53
EPS Growth Rate
(3Y to 5Y Estimate)
12.20%
Dividends Per Share ($)
» More Articles for NYSE:RAX

Headlines

Articles On GuruFocus.com
10 Years of Strong Returns: 51job, Under Armour Jul 19 2016 
Cloud Computing: Who Do I Invest In? Jul 07 2016 
Stocks Tumble to 5-year lows Feb 15 2016 
Lee Ainslie Gains From Liberty Global But Loses From Axiall Jan 13 2016 
Rackspace Hosting's Shares Fall 14% Following Lackluster Q2 Guidance May 13 2015 
Weekly CFO Sells Highlight: Home Depot Inc, Rackspace Hosting Inc, Aon PLC Mar 01 2015 
Rackspace Holdings' Managed Cloud Business Will Help It Deliver Strong Growth Feb 17 2015 
New Guru Jana Partners' Newest Stock Buys Jan 22 2015 
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 

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