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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 : 9/10

vs
industry
vs
history
Cash to Debt 0.61
RAX's Cash to Debt is ranked lower than
78% of the 1806 Companies
in the Global Information Technology Services industry.

( Industry Median: 8.17 vs. RAX: 0.61 )
Ranked among companies with meaningful Cash to Debt only.
RAX' s Cash to Debt Range Over the Past 10 Years
Min: 0.19  Med: 1.32 Max: N/A
Current: 0.61
Equity to Asset 0.60
RAX's Equity to Asset is ranked lower than
51% of the 1719 Companies
in the Global Information Technology Services industry.

( Industry Median: 0.61 vs. RAX: 0.60 )
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: 0.6
0.29
0.71
Interest Coverage 21.81
RAX's Interest Coverage is ranked lower than
75% of the 1173 Companies
in the Global Information Technology Services industry.

( Industry Median: 613.26 vs. RAX: 21.81 )
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: 9999.99
Current: 21.81
4.88
9999.99
F-Score: 5
Z-Score: 4.01
M-Score: -3.47
WACC vs ROIC
13.63%
12.87%
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 (%) 9.98
RAX's Operating margin (%) is ranked higher than
69% of the 1762 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.75 vs. RAX: 9.98 )
Ranked among companies with meaningful Operating margin (%) only.
RAX' s Operating margin (%) Range Over the Past 10 Years
Min: 7.55  Med: 9.11 Max: 13.95
Current: 9.98
7.55
13.95
Net-margin (%) 6.72
RAX's Net-margin (%) is ranked higher than
64% of the 1763 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.38 vs. RAX: 6.72 )
Ranked among companies with meaningful Net-margin (%) only.
RAX' s Net-margin (%) Range Over the Past 10 Years
Min: 4.08  Med: 6.05 Max: 8.85
Current: 6.72
4.08
8.85
ROE (%) 11.42
RAX's ROE (%) is ranked higher than
67% of the 1707 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.90 vs. RAX: 11.42 )
Ranked among companies with meaningful ROE (%) only.
RAX' s ROE (%) Range Over the Past 10 Years
Min: 9.13  Med: 13.23 Max: 103.39
Current: 11.42
9.13
103.39
ROA (%) 7.60
RAX's ROA (%) is ranked higher than
72% of the 1810 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.01 vs. RAX: 7.60 )
Ranked among companies with meaningful ROA (%) only.
RAX' s ROA (%) Range Over the Past 10 Years
Min: 4.4  Med: 7.65 Max: 52.15
Current: 7.6
4.4
52.15
ROC (Joel Greenblatt) (%) 17.98
RAX's ROC (Joel Greenblatt) (%) is ranked lower than
53% of the 1778 Companies
in the Global Information Technology Services industry.

( Industry Median: 22.73 vs. RAX: 17.98 )
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: 17.98
13.89
62.11
Revenue Growth (3Y)(%) 18.70
RAX's Revenue Growth (3Y)(%) is ranked higher than
83% of the 1367 Companies
in the Global Information Technology Services industry.

( Industry Median: 4.90 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: 22.85 Max: 83.5
Current: 18.7
17.2
83.5
EBITDA Growth (3Y)(%) 17.30
RAX's EBITDA Growth (3Y)(%) is ranked higher than
70% of the 1109 Companies
in the Global Information Technology Services industry.

( Industry Median: 6.90 vs. RAX: 17.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RAX' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 27.30 Max: 101.7
Current: 17.3
0
101.7
EPS Growth (3Y)(%) 11.40
RAX's EPS Growth (3Y)(%) is ranked higher than
59% of the 1027 Companies
in the Global Information Technology Services industry.

( Industry Median: 5.80 vs. RAX: 11.40 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RAX' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 7.6  Med: 24.05 Max: 164.7
Current: 11.4
7.6
164.7
» RAX's 10-Y Financials

Financials (Next Earnings Date: 2016-02-16)


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

» Details

Guru Trades

Q1 2015

RAX Guru Trades in Q1 2015

Jim Simons 724,200 sh (+193.32%)
Paul Tudor Jones Sold Out
RS Investment Management 1,371,773 sh (-7.09%)
Murray Stahl 16,164 sh (-9.09%)
Jana Partners 5,997,300 sh (-25.05%)
Joel Greenblatt 8,172 sh (-48.85%)
Steven Cohen 1,835,200 sh (-54.90%)
» More
Q2 2015

RAX Guru Trades in Q2 2015

John Hussman 175,000 sh (New)
Lee Ainslie 6,560 sh (New)
Paul Tudor Jones 60,835 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%)
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

John Hussman Sold Out
Jim Simons 679,900 sh (-46.07%)
» 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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» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 18.42
RAX's P/E(ttm) is ranked higher than
63% of the 1674 Companies
in the Global Information Technology Services industry.

( Industry Median: 22.90 vs. RAX: 18.42 )
Ranked among companies with meaningful P/E(ttm) only.
RAX' s P/E(ttm) Range Over the Past 10 Years
Min: 18.38  Med: 66.60 Max: 124.84
Current: 18.42
18.38
124.84
Forward P/E 17.57
RAX's Forward P/E is ranked lower than
52% of the 951 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.56 vs. RAX: 17.57 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 18.52
RAX's PE(NRI) is ranked higher than
63% of the 1234 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.10 vs. RAX: 18.52 )
Ranked among companies with meaningful PE(NRI) only.
RAX' s PE(NRI) Range Over the Past 10 Years
Min: 18.49  Med: 66.14 Max: 124.84
Current: 18.52
18.49
124.84
P/B 2.15
RAX's P/B is ranked higher than
56% of the 2330 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.82 vs. RAX: 2.15 )
Ranked among companies with meaningful P/B only.
RAX' s P/B Range Over the Past 10 Years
Min: 1.97  Med: 6.35 Max: 12.9
Current: 2.15
1.97
12.9
P/S 1.25
RAX's P/S is ranked higher than
61% of the 2330 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.64 vs. RAX: 1.25 )
Ranked among companies with meaningful P/S only.
RAX' s P/S Range Over the Past 10 Years
Min: 0.98  Med: 3.83 Max: 8.52
Current: 1.25
0.98
8.52
PFCF 26.78
RAX's PFCF is ranked lower than
61% of the 1249 Companies
in the Global Information Technology Services industry.

( Industry Median: 21.65 vs. RAX: 26.78 )
Ranked among companies with meaningful PFCF only.
RAX' s PFCF Range Over the Past 10 Years
Min: 24.32  Med: 62.65 Max: 162.58
Current: 26.78
24.32
162.58
POCF 4.57
RAX's POCF is ranked higher than
92% of the 1535 Companies
in the Global Information Technology Services industry.

( Industry Median: 15.76 vs. RAX: 4.57 )
Ranked among companies with meaningful POCF only.
RAX' s POCF Range Over the Past 10 Years
Min: 3.82  Med: 12.81 Max: 27.89
Current: 4.57
3.82
27.89
EV-to-EBIT 12.16
RAX's EV-to-EBIT is ranked higher than
68% of the 1756 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.10 vs. RAX: 12.16 )
Ranked among companies with meaningful EV-to-EBIT only.
RAX' s EV-to-EBIT Range Over the Past 10 Years
Min: 12.16  Med: 40.65 Max: 72.1
Current: 12.16
12.16
72.1
EV-to-EBITDA 4.02
RAX's EV-to-EBITDA is ranked higher than
90% of the 1893 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.19 vs. RAX: 4.02 )
Ranked among companies with meaningful EV-to-EBITDA only.
RAX' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.05  Med: 13.20 Max: 26.1
Current: 4.02
4.05
26.1
PEG 1.02
RAX's PEG is ranked higher than
69% of the 530 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.78 vs. RAX: 1.02 )
Ranked among companies with meaningful PEG only.
RAX' s PEG Range Over the Past 10 Years
Min: 1.1  Med: 2.27 Max: 3.34
Current: 1.02
1.1
3.34
Current Ratio 1.08
RAX's Current Ratio is ranked lower than
81% of the 1733 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.97 vs. RAX: 1.08 )
Ranked among companies with meaningful Current Ratio only.
RAX' s Current Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.39 Max: 2.21
Current: 1.08
0.52
2.21
Quick Ratio 1.08
RAX's Quick Ratio is ranked lower than
78% of the 1733 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.88 vs. RAX: 1.08 )
Ranked among companies with meaningful Quick Ratio only.
RAX' s Quick Ratio Range Over the Past 10 Years
Min: 0.52  Med: 1.39 Max: 2.21
Current: 1.08
0.52
2.21
Days Sales Outstanding 32.72
RAX's Days Sales Outstanding is ranked higher than
86% of the 1430 Companies
in the Global Information Technology Services industry.

( Industry Median: 70.48 vs. RAX: 32.72 )
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: 32.72
21.22
31.83

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.41
RAX's Price/Tangible Book is ranked higher than
65% of the 1773 Companies
in the Global Information Technology Services industry.

( Industry Median: 3.80 vs. RAX: 2.41 )
Ranked among companies with meaningful Price/Tangible Book only.
RAX' s Price/Tangible Book Range Over the Past 10 Years
Min: 2.54  Med: 6.96 Max: 13.63
Current: 2.41
2.54
13.63
Price/Projected FCF 1.18
RAX's Price/Projected FCF is ranked higher than
65% of the 1142 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.53 vs. RAX: 1.18 )
Ranked among companies with meaningful Price/Projected FCF only.
RAX' s Price/Projected FCF Range Over the Past 10 Years
Min: 1.7  Med: 3.35 Max: 7.27
Current: 1.18
1.7
7.27
Price/Median PS Value 0.33
RAX's Price/Median PS Value is ranked higher than
95% of the 2004 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.04 vs. RAX: 0.33 )
Ranked among companies with meaningful Price/Median PS Value only.
RAX' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.3  Med: 0.99 Max: 2.09
Current: 0.33
0.3
2.09
Price/Peter Lynch Fair Value 1.00
RAX's Price/Peter Lynch Fair Value is ranked higher than
72% of the 512 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. RAX: 1.00 )
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: 1.45  Med: 2.62 Max: 3.96
Current: 1
1.45
3.96
Price/Graham Number 1.42
RAX's Price/Graham Number is ranked higher than
62% of the 1444 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.98 vs. RAX: 1.42 )
Ranked among companies with meaningful Price/Graham Number only.
RAX' s Price/Graham Number Range Over the Past 10 Years
Min: 1.79  Med: 4.68 Max: 8.35
Current: 1.42
1.79
8.35
Earnings Yield (Greenblatt) (%) 8.19
RAX's Earnings Yield (Greenblatt) (%) is ranked higher than
71% of the 1745 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.60 vs. RAX: 8.19 )
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: 8.22
Current: 8.19
1.4
8.22
Forward Rate of Return (Yacktman) (%) 21.56
RAX's Forward Rate of Return (Yacktman) (%) is ranked higher than
77% of the 701 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.48 vs. RAX: 21.56 )
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: 21.90 Max: 43.6
Current: 21.56
0.5
43.6

More Statistics

Revenue(Mil) $1951
EPS $ 0.92
Beta1.63
Short Percentage of Float11.08%
52-Week Range $16.50 - 56.20
Shares Outstanding(Mil)134.70

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 2,002 2,245 2,485
EPS($) 0.82 0.86 0.97
EPS without NRI($) 0.82 0.86 0.97

Latest Earnings Webcast

Call starts at Nov 09, 2015 04:30 PM EST

» More Conference Calls

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. 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.
» More Articles for RAX

Headlines

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