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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 : 8/10

vs
industry
vs
history
Cash to Debt 1.77
RHT's Cash to Debt is ranked lower than
69% of the 1714 Companies
in the Global Software - Application industry.

( Industry Median: 17.11 vs. RHT: 1.77 )
Ranked among companies with meaningful Cash to Debt only.
RHT' s 10-Year Cash to Debt Range
Min: 0.54  Med: 14.00 Max: No Debt
Current: 1.77
Equity to Asset 0.34
RHT's Equity to Asset is ranked lower than
84% of the 1511 Companies
in the Global Software - Application industry.

( Industry Median: 0.61 vs. RHT: 0.34 )
Ranked among companies with meaningful Equity to Asset only.
RHT' s 10-Year Equity to Asset Range
Min: -0.12  Med: 0.54 Max: 0.92
Current: 0.34
-0.12
0.92
Interest Coverage 26.61
RHT's Interest Coverage is ranked lower than
76% of the 1104 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. RHT: 26.61 )
Ranked among companies with meaningful Interest Coverage only.
RHT' s 10-Year Interest Coverage Range
Min: 2.73  Med: 21.91 Max: 9999.99
Current: 26.61
2.73
9999.99
F-Score: 6
Z-Score: 4.62
M-Score: -2.94
WACC vs ROIC
9.78%
24.68%
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 (%) 13.97
RHT's Operating margin (%) is ranked higher than
78% of the 1686 Companies
in the Global Software - Application industry.

( Industry Median: 5.08 vs. RHT: 13.97 )
Ranked among companies with meaningful Operating margin (%) only.
RHT' s 10-Year Operating margin (%) Range
Min: -169.24  Med: 13.23 Max: 61.7
Current: 13.97
-169.24
61.7
Net-margin (%) 10.07
RHT's Net-margin (%) is ranked higher than
75% of the 1686 Companies
in the Global Software - Application industry.

( Industry Median: 3.22 vs. RHT: 10.07 )
Ranked among companies with meaningful Net-margin (%) only.
RHT' s 10-Year Net-margin (%) Range
Min: -177.69  Med: 11.46 Max: 28.63
Current: 10.07
-177.69
28.63
ROE (%) 12.67
RHT's ROE (%) is ranked higher than
71% of the 1646 Companies
in the Global Software - Application industry.

( Industry Median: 6.12 vs. RHT: 12.67 )
Ranked among companies with meaningful ROE (%) only.
RHT' s 10-Year ROE (%) Range
Min: -86.72  Med: 8.65 Max: 19.02
Current: 12.67
-86.72
19.02
ROA (%) 5.43
RHT's ROA (%) is ranked higher than
63% of the 1724 Companies
in the Global Software - Application industry.

( Industry Median: 3.09 vs. RHT: 5.43 )
Ranked among companies with meaningful ROA (%) only.
RHT' s 10-Year ROA (%) Range
Min: -32.05  Med: 4.05 Max: 6.51
Current: 5.43
-32.05
6.51
ROC (Joel Greenblatt) (%) 150.19
RHT's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 1699 Companies
in the Global Software - Application industry.

( Industry Median: 22.78 vs. RHT: 150.19 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
RHT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -823.16  Med: 165.27 Max: 257.15
Current: 150.19
-823.16
257.15
Revenue Growth (3Y)(%) 17.90
RHT's Revenue Growth (3Y)(%) is ranked higher than
82% of the 1285 Companies
in the Global Software - Application industry.

( Industry Median: 5.00 vs. RHT: 17.90 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
RHT' s 10-Year Revenue Growth (3Y)(%) Range
Min: -28.4  Med: 23.10 Max: 45
Current: 17.9
-28.4
45
EBITDA Growth (3Y)(%) 12.00
RHT's EBITDA Growth (3Y)(%) is ranked higher than
61% of the 1025 Companies
in the Global Software - Application industry.

( Industry Median: 6.90 vs. RHT: 12.00 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
RHT' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -44.4  Med: 16.60 Max: 84.6
Current: 12
-44.4
84.6
EPS Growth (3Y)(%) 8.20
RHT's EPS Growth (3Y)(%) is ranked higher than
54% of the 938 Companies
in the Global Software - Application industry.

( Industry Median: 6.50 vs. RHT: 8.20 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
RHT' s 10-Year EPS Growth (3Y)(%) Range
Min: -54  Med: 18.85 Max: 95.7
Current: 8.2
-54
95.7
» RHT's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2014

RHT Guru Trades in Q2 2014

Louis Moore Bacon 50,000 sh (New)
Jeremy Grantham 110,100 sh (New)
Ron Baron 360,531 sh (+24.15%)
Columbia Wanger 500,000 sh (unchged)
RS Investment Management Sold Out
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Ray Dalio Sold Out
George Soros 166,250 sh (-39.55%)
» More
Q3 2014

RHT Guru Trades in Q3 2014

Ray Dalio 64,107 sh (New)
Paul Tudor Jones 11,000 sh (New)
Jeremy Grantham 135,720 sh (+23.27%)
Ron Baron 385,178 sh (+6.84%)
Louis Moore Bacon Sold Out
Columbia Wanger Sold Out
George Soros Sold Out
» More
Q4 2014

RHT Guru Trades in Q4 2014

Jim Simons 37,380 sh (New)
Jeremy Grantham 161,400 sh (+18.92%)
Ron Baron 303,087 sh (-21.31%)
Paul Tudor Jones 7,800 sh (-29.09%)
Ray Dalio 29,367 sh (-54.19%)
» More
Q1 2015

RHT Guru Trades in Q1 2015

John Burbank 5,229 sh (New)
Jim Simons 313,665 sh (+739.13%)
Ray Dalio 42,190 sh (+43.66%)
Paul Tudor Jones Sold Out
Jeremy Grantham 157,000 sh (-2.73%)
Ron Baron 241,575 sh (-20.30%)
» More
» Details

Insider Trades

Latest Guru Trades with RHT

(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) 79.67
RHT's P/E(ttm) is ranked lower than
80% of the 1110 Companies
in the Global Software - Application industry.

( Industry Median: 25.60 vs. RHT: 79.67 )
Ranked among companies with meaningful P/E(ttm) only.
RHT' s 10-Year P/E(ttm) Range
Min: 21.35  Med: 64.38 Max: 98.31
Current: 79.67
21.35
98.31
Forward P/E 53.19
RHT's Forward P/E is ranked lower than
83% of the 584 Companies
in the Global Software - Application industry.

( Industry Median: 20.24 vs. RHT: 53.19 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 79.90
RHT's PE(NRI) is ranked lower than
81% of the 1073 Companies
in the Global Software - Application industry.

( Industry Median: 25.00 vs. RHT: 79.90 )
Ranked among companies with meaningful PE(NRI) only.
RHT' s 10-Year PE(NRI) Range
Min: 21.4  Med: 65.78 Max: 102
Current: 79.9
21.4
102
P/B 10.98
RHT's P/B is ranked lower than
87% of the 1692 Companies
in the Global Software - Application industry.

( Industry Median: 2.83 vs. RHT: 10.98 )
Ranked among companies with meaningful P/B only.
RHT' s 10-Year P/B Range
Min: 1.52  Med: 6.12 Max: 12.85
Current: 10.98
1.52
12.85
P/S 8.13
RHT's P/S is ranked lower than
82% of the 1858 Companies
in the Global Software - Application industry.

( Industry Median: 2.46 vs. RHT: 8.13 )
Ranked among companies with meaningful P/S only.
RHT' s 10-Year P/S Range
Min: 2.94  Med: 8.38 Max: 24.46
Current: 8.13
2.94
24.46
PFCF 25.46
RHT's PFCF is ranked higher than
50% of the 872 Companies
in the Global Software - Application industry.

( Industry Median: 25.66 vs. RHT: 25.46 )
Ranked among companies with meaningful PFCF only.
RHT' s 10-Year PFCF Range
Min: 9.62  Med: 26.89 Max: 42.37
Current: 25.46
9.62
42.37
POCF 23.37
RHT's POCF is ranked lower than
61% of the 1096 Companies
in the Global Software - Application industry.

( Industry Median: 18.67 vs. RHT: 23.37 )
Ranked among companies with meaningful POCF only.
RHT' s 10-Year POCF Range
Min: 8  Med: 22.74 Max: 37.14
Current: 23.37
8
37.14
EV-to-EBIT 52.36
RHT's EV-to-EBIT is ranked lower than
80% of the 1138 Companies
in the Global Software - Application industry.

( Industry Median: 17.31 vs. RHT: 52.36 )
Ranked among companies with meaningful EV-to-EBIT only.
RHT' s 10-Year EV-to-EBIT Range
Min: 16.5  Med: 48.30 Max: 231.1
Current: 52.36
16.5
231.1
PEG 5.06
RHT's PEG is ranked lower than
76% of the 471 Companies
in the Global Software - Application industry.

( Industry Median: 1.95 vs. RHT: 5.06 )
Ranked among companies with meaningful PEG only.
RHT' s 10-Year PEG Range
Min: 0.45  Med: 4.04 Max: 8.1
Current: 5.06
0.45
8.1
Shiller P/E 101.36
RHT's Shiller P/E is ranked lower than
85% of the 690 Companies
in the Global Software - Application industry.

( Industry Median: 30.83 vs. RHT: 101.36 )
Ranked among companies with meaningful Shiller P/E only.
RHT' s 10-Year Shiller P/E Range
Min: 29.52  Med: 87.61 Max: 2424
Current: 101.36
29.52
2424
Current Ratio 1.48
RHT's Current Ratio is ranked lower than
68% of the 1553 Companies
in the Global Software - Application industry.

( Industry Median: 2.07 vs. RHT: 1.48 )
Ranked among companies with meaningful Current Ratio only.
RHT' s 10-Year Current Ratio Range
Min: 1.23  Med: 2.09 Max: 8.69
Current: 1.48
1.23
8.69
Quick Ratio 1.48
RHT's Quick Ratio is ranked lower than
64% of the 1553 Companies
in the Global Software - Application industry.

( Industry Median: 1.93 vs. RHT: 1.48 )
Ranked among companies with meaningful Quick Ratio only.
RHT' s 10-Year Quick Ratio Range
Min: 1.23  Med: 2.06 Max: 8.68
Current: 1.48
1.23
8.68
Days Sales Outstanding 95.46
RHT's Days Sales Outstanding is ranked lower than
71% of the 1453 Companies
in the Global Software - Application industry.

( Industry Median: 68.81 vs. RHT: 95.46 )
Ranked among companies with meaningful Days Sales Outstanding only.
RHT' s 10-Year Days Sales Outstanding Range
Min: 33.92  Med: 80.15 Max: 128.12
Current: 95.46
33.92
128.12

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 62.00
RHT's Price/Tangible Book is ranked lower than
98% of the 1390 Companies
in the Global Software - Application industry.

( Industry Median: 4.23 vs. RHT: 62.00 )
Ranked among companies with meaningful Price/Tangible Book only.
RHT' s 10-Year Price/Tangible Book Range
Min: 3.4  Med: 10.32 Max: 55.74
Current: 62
3.4
55.74
Price/Projected FCF 2.24
RHT's Price/Projected FCF is ranked lower than
64% of the 793 Companies
in the Global Software - Application industry.

( Industry Median: 1.72 vs. RHT: 2.24 )
Ranked among companies with meaningful Price/Projected FCF only.
RHT' s 10-Year Price/Projected FCF Range
Min: 0.9  Med: 2.02 Max: 5.91
Current: 2.24
0.9
5.91
Price/DCF (Earnings Based) 3.68
RHT's Price/DCF (Earnings Based) is ranked lower than
74% of the 92 Companies
in the Global Software - Application industry.

( Industry Median: 1.52 vs. RHT: 3.68 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 0.97
RHT's Price/Median PS Value is ranked higher than
68% of the 1577 Companies
in the Global Software - Application industry.

( Industry Median: 1.22 vs. RHT: 0.97 )
Ranked among companies with meaningful Price/Median PS Value only.
RHT' s 10-Year Price/Median PS Value Range
Min: 0.53  Med: 1.21 Max: 12.94
Current: 0.97
0.53
12.94
Price/Peter Lynch Fair Value 5.01
RHT's Price/Peter Lynch Fair Value is ranked lower than
89% of the 336 Companies
in the Global Software - Application industry.

( Industry Median: 1.71 vs. RHT: 5.01 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
RHT' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.44  Med: 3.91 Max: 12.67
Current: 5.01
1.44
12.67
Price/Graham Number 14.70
RHT's Price/Graham Number is ranked lower than
95% of the 878 Companies
in the Global Software - Application industry.

( Industry Median: 2.37 vs. RHT: 14.70 )
Ranked among companies with meaningful Price/Graham Number only.
RHT' s 10-Year Price/Graham Number Range
Min: 2.94  Med: 5.99 Max: 13.22
Current: 14.7
2.94
13.22
Earnings Yield (Greenblatt) (%) 1.89
RHT's Earnings Yield (Greenblatt) (%) is ranked lower than
53% of the 1741 Companies
in the Global Software - Application industry.

( Industry Median: 2.50 vs. RHT: 1.89 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
RHT' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.4  Med: 2.10 Max: 6
Current: 1.89
0.4
6
Forward Rate of Return (Yacktman) (%) 18.43
RHT's Forward Rate of Return (Yacktman) (%) is ranked higher than
72% of the 664 Companies
in the Global Software - Application industry.

( Industry Median: 10.82 vs. RHT: 18.43 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
RHT' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -0.2  Med: 16.00 Max: 74
Current: 18.43
-0.2
74

Analyst Estimate

Feb16 Feb17 Feb18
Revenue(Mil) 2,029 2,353 2,603
EPS($) 1.45 1.98 2.45
EPS without NRI($) 1.45 1.98 2.45

Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, INTU, ADBE, DASTY » details
Traded in other countries:RHI.Germany,
Red Hat Inc was incorporated in Connecticut in March 1993 as ACC Corp., Inc., which subsequently changed its name to Red Hat Software, Inc. Red Hat Software, Inc. reincorporated in Delaware in September 1998 and changed its name to Red Hat, Inc. in June 1999. The Company uses the open source software development and licensing model to offer enterprise technologies to customers on a subscription basis. Subscriptions for its offerings are marketed and sold to customers directly and through channel partners. Under the open source model, a software developer distributes the human-readable source code version of the software under an open source license, such as the GNU General Public License (GPL) or GNU Lesser General Public License. Open source licenses provide relative rights for recipients of the software to use, copy, modify and redistribute the software. Under the proprietary software model, a software vendor generally develops the software itself or acquires components from other vendors, without the input from a wider community of participants. It provides its software offerings to its customers mainly under annual or multi-year subscriptions. The Companys software offerings are designed to provide enterprises with high-performing, scalable, flexible, reliable, secure and stable technologies that meet customers IT infrastructure needs, both on-premise and in a cloud. Its competitors include Attachmate, BMC, CA, HP, IBM, Microsoft and Oracle, all of which offer support for heterogeneous operating system environments, such as Linux, Solaris, AIX, HP-UX and Windows.
» More Articles for RHT

Headlines

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Red Hat (RHT) and Five Below (FIVE) Strong Performance Metrics; Vical (VICL) Targets Multi-billion S Mar 26 2015 
Red Hat Q4 Earnings Preview Mar 24 2015 
Looking Ahead of Wall Street: Red Hat, Lululemon, Blackberry Mar 23 2015 
Red Hat's Focus on Infrastructure and a Growing Customer Base Are Long-Term Drivers Feb 11 2015 
Red Hat's Infrastructure Focus and Growing Customer Base Are Catalysts Feb 09 2015 

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