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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 : 10/10

vs
industry
vs
history
Cash to Debt 1.57
RHT's Cash to Debt is ranked higher than
60% of the 2118 Companies
in the Global Software - Application industry.

( Industry Median: 4.93 vs. RHT: 1.57 )
RHT' s 10-Year Cash to Debt Range
Min: 0.38   Max: No Debt
Current: 1.57

Equity to Asset 0.35
RHT's Equity to Asset is ranked lower than
51% of the 2048 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. RHT: 0.35 )
RHT' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.94
Current: 0.35

0.32
0.94
Interest Coverage No Debt
RHT's Interest Coverage is ranked higher than
78% of the 1326 Companies
in the Global Software - Application industry.

( Industry Median: 1176.93 vs. RHT: No Debt )
RHT' s 10-Year Interest Coverage Range
Min: 2.73   Max: 9999.99
Current: No Debt

2.73
9999.99
F-Score: 6
Z-Score: 4.49
M-Score: -3.01
WACC vs ROIC
13.10%
25.91%
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 (%) 14.00
RHT's Operating margin (%) is ranked higher than
87% of the 2100 Companies
in the Global Software - Application industry.

( Industry Median: 5.37 vs. RHT: 14.00 )
RHT' s 10-Year Operating margin (%) Range
Min: -169.24   Max: 61.7
Current: 14

-169.24
61.7
Net-margin (%) 10.29
RHT's Net-margin (%) is ranked higher than
85% of the 2100 Companies
in the Global Software - Application industry.

( Industry Median: 3.67 vs. RHT: 10.29 )
RHT' s 10-Year Net-margin (%) Range
Min: -177.69   Max: 28.63
Current: 10.29

-177.69
28.63
ROE (%) 12.17
RHT's ROE (%) is ranked higher than
82% of the 2033 Companies
in the Global Software - Application industry.

( Industry Median: 6.20 vs. RHT: 12.17 )
RHT' s 10-Year ROE (%) Range
Min: -86.72   Max: 19.02
Current: 12.17

-86.72
19.02
ROA (%) 5.68
RHT's ROA (%) is ranked higher than
78% of the 2126 Companies
in the Global Software - Application industry.

( Industry Median: 3.37 vs. RHT: 5.68 )
RHT' s 10-Year ROA (%) Range
Min: -32.05   Max: 6.51
Current: 5.68

-32.05
6.51
ROC (Joel Greenblatt) (%) 139.74
RHT's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 2105 Companies
in the Global Software - Application industry.

( Industry Median: 29.03 vs. RHT: 139.74 )
RHT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -823.16   Max: 501.08
Current: 139.74

-823.16
501.08
Revenue Growth (3Y)(%) 19.90
RHT's Revenue Growth (3Y)(%) is ranked higher than
91% of the 1666 Companies
in the Global Software - Application industry.

( Industry Median: 5.60 vs. RHT: 19.90 )
RHT' s 10-Year Revenue Growth (3Y)(%) Range
Min: -28.4   Max: 45
Current: 19.9

-28.4
45
EBITDA Growth (3Y)(%) 17.40
RHT's EBITDA Growth (3Y)(%) is ranked higher than
84% of the 1378 Companies
in the Global Software - Application industry.

( Industry Median: 7.20 vs. RHT: 17.40 )
RHT' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -44.4   Max: 84.6
Current: 17.4

-44.4
84.6
EPS Growth (3Y)(%) 19.10
RHT's EPS Growth (3Y)(%) is ranked higher than
84% of the 1261 Companies
in the Global Software - Application industry.

( Industry Median: 6.90 vs. RHT: 19.10 )
RHT' s 10-Year EPS Growth (3Y)(%) Range
Min: -54   Max: 95.7
Current: 19.1

-54
95.7
» RHT's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2014

RHT Guru Trades in Q1 2014

Jim Simons 137,865 sh (New)
RS Investment Management 69,600 sh (New)
Ron Baron 290,394 sh (+26.39%)
Steven Cohen 54,049 sh (+18.79%)
Ray Dalio 78,313 sh (-19.79%)
Paul Tudor Jones 31,321 sh (-21.72%)
Columbia Wanger 500,000 sh (-28.57%)
George Soros 275,000 sh (-83.25%)
» More
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)
Jim Simons Sold Out
Paul Tudor Jones Sold Out
RS Investment Management Sold Out
Ray Dalio Sold Out
George Soros 166,250 sh (-39.55%)
» More
Q3 2014

RHT Guru Trades in Q3 2014

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

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2014-12-31 Reduce -21.31%0.02%$54.22 - $71.09 $ 67.1911%303087
Ray Dalio 2014-12-31 Reduce -54.19%0.02%$54.22 - $71.09 $ 67.1911%29367
George Soros 2014-09-30 Sold Out 0.07%$53.93 - $62.54 $ 67.1915%0
Ray Dalio 2014-09-30 New Buy0.03%$53.93 - $62.54 $ 67.1915%64107
George Soros 2014-06-30 Reduce -39.55%0.06%$48.19 - $55.41 $ 67.1932%166250
Ray Dalio 2014-06-30 Sold Out 0.03%$48.19 - $55.41 $ 67.1932%0
Ron Baron 2014-06-30 Add 24.15%0.02%$48.19 - $55.41 $ 67.1932%360531
George Soros 2014-03-31 Reduce -83.25%0.65%$52.23 - $60.86 $ 67.1916%275000
Ron Baron 2014-03-31 Add 26.39%0.01%$52.23 - $60.86 $ 67.1916%290394
George Soros 2013-12-31 Add 198.46%0.52%$42.35 - $56.24 $ 67.1946%1641525
Andreas Halvorsen 2013-12-31 Sold Out 0.46%$42.35 - $56.24 $ 67.1946%0
Ray Dalio 2013-12-31 Reduce -69.25%0.08%$42.35 - $56.24 $ 67.1946%97636
Andreas Halvorsen 2013-09-30 New Buy0.46%$45.95 - $53.59 $ 67.1932%1807479
George Soros 2013-09-30 Add 266.67%0.2%$45.95 - $53.59 $ 67.1932%550000
Ray Dalio 2013-09-30 Add 30.21%0.03%$45.95 - $53.59 $ 67.1932%317506
George Soros 2013-06-30 Reduce -85.67%0.53%$45.48 - $54.99 $ 67.1938%150000
George Soros 2013-03-31 New Buy0.62%$48.99 - $56.9 $ 67.1926%1047028
Ray Dalio 2013-03-31 New Buy0.1%$48.99 - $56.9 $ 67.1926%215509
Ron Baron 2013-03-31 Add 23.14%0.01%$48.99 - $56.9 $ 67.1926%201729
Ron Baron 2012-12-31 Add 47.5%0.02%$47.41 - $55.8 $ 67.1932%163824
Ron Baron 2012-09-30 Add 73.46%0.02%$50.48 - $60 $ 67.1921%111070
Ron Baron 2012-06-30 Add 190.94%0.02%$49.94 - $61.82 $ 67.1919%64032
Ron Baron 2012-03-31 Reduce -70.66%0.01%$41.65 - $60.18 $ 67.1948%22009
Ron Baron 2011-12-31 New Buy0.02%$39.89 - $52.72 $ 67.1944%75009
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 71.20
RHT's P/E(ttm) is ranked higher than
70% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 56.70 vs. RHT: 71.20 )
RHT' s 10-Year P/E(ttm) Range
Min: 21.35   Max: 237.46
Current: 71.2

21.35
237.46
Forward P/E 43.10
RHT's Forward P/E is ranked higher than
82% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. RHT: 43.10 )
N/A
PE(NRI) 72.90
RHT's PE(NRI) is ranked higher than
70% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 59.00 vs. RHT: 72.90 )
RHT' s 10-Year PE(NRI) Range
Min: 21.4   Max: 233.5
Current: 72.9

21.4
233.5
P/B 10.00
RHT's P/B is ranked higher than
52% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 3.32 vs. RHT: 10.00 )
RHT' s 10-Year P/B Range
Min: 1.65   Max: 12.85
Current: 10

1.65
12.85
P/S 7.40
RHT's P/S is ranked higher than
54% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 2.67 vs. RHT: 7.40 )
RHT' s 10-Year P/S Range
Min: 2.94   Max: 40.61
Current: 7.4

2.94
40.61
PFCF 24.40
RHT's PFCF is ranked higher than
82% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 102.32 vs. RHT: 24.40 )
RHT' s 10-Year PFCF Range
Min: 9.62   Max: 84.91
Current: 24.4

9.62
84.91
POCF 22.17
RHT's POCF is ranked higher than
75% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 28.43 vs. RHT: 22.17 )
RHT' s 10-Year POCF Range
Min: 8   Max: 66.71
Current: 22.17

8
66.71
EV-to-EBIT 46.23
RHT's EV-to-EBIT is ranked higher than
69% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 36.34 vs. RHT: 46.23 )
RHT' s 10-Year EV-to-EBIT Range
Min: 16.5   Max: 608.1
Current: 46.23

16.5
608.1
PEG 4.26
RHT's PEG is ranked higher than
88% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. RHT: 4.26 )
RHT' s 10-Year PEG Range
Min: 0.45   Max: 8.63
Current: 4.26

0.45
8.63
Shiller P/E 93.30
RHT's Shiller P/E is ranked higher than
79% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. RHT: 93.30 )
RHT' s 10-Year Shiller P/E Range
Min: 29.52   Max: 2424
Current: 93.3

29.52
2424
Current Ratio 1.45
RHT's Current Ratio is ranked higher than
59% of the 2080 Companies
in the Global Software - Application industry.

( Industry Median: 1.88 vs. RHT: 1.45 )
RHT' s 10-Year Current Ratio Range
Min: 1.12   Max: 8.69
Current: 1.45

1.12
8.69
Quick Ratio 1.45
RHT's Quick Ratio is ranked higher than
62% of the 2080 Companies
in the Global Software - Application industry.

( Industry Median: 1.77 vs. RHT: 1.45 )
RHT' s 10-Year Quick Ratio Range
Min: 1.12   Max: 8.68
Current: 1.45

1.12
8.68
Days Sales Outstanding 75.05
RHT's Days Sales Outstanding is ranked higher than
73% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 84.50 vs. RHT: 75.05 )
RHT' s 10-Year Days Sales Outstanding Range
Min: 33.92   Max: 128.12
Current: 75.05

33.92
128.12

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 83.54
RHT's Price/Tangible Book is ranked higher than
55% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 8.39 vs. RHT: 83.54 )
RHT' s 10-Year Price/Tangible Book Range
Min: 1.96   Max: 159.09
Current: 83.54

1.96
159.09
Price/DCF (Projected) 2.15
RHT's Price/DCF (Projected) is ranked higher than
81% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 7.56 vs. RHT: 2.15 )
RHT' s 10-Year Price/DCF (Projected) Range
Min: 0.67   Max: 6.09
Current: 2.15

0.67
6.09
Price/Median PS Value 0.88
RHT's Price/Median PS Value is ranked higher than
88% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 1.28 vs. RHT: 0.88 )
RHT' s 10-Year Price/Median PS Value Range
Min: 0.37   Max: 36.97
Current: 0.88

0.37
36.97
Price/Peter Lynch Fair Value 4.24
RHT's Price/Peter Lynch Fair Value is ranked higher than
88% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. RHT: 4.24 )
RHT' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.93   Max: 12.67
Current: 4.24

0.93
12.67
Price/Graham Number 16.23
RHT's Price/Graham Number is ranked higher than
70% of the 2303 Companies
in the Global Software - Application industry.

( Industry Median: 16.38 vs. RHT: 16.23 )
RHT' s 10-Year Price/Graham Number Range
Min: 1.94   Max: 14.73
Current: 16.23

1.94
14.73
Earnings Yield (Greenblatt) 2.20
RHT's Earnings Yield (Greenblatt) is ranked higher than
67% of the 2102 Companies
in the Global Software - Application industry.

( Industry Median: 3.40 vs. RHT: 2.20 )
RHT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 6
Current: 2.2

0.2
6
Forward Rate of Return (Yacktman) 19.91
RHT's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 1125 Companies
in the Global Software - Application industry.

( Industry Median: 12.92 vs. RHT: 19.91 )
RHT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.2   Max: 74
Current: 19.91

-0.2
74

Analyst Estimate

Feb15 Feb16 Feb17
Revenue(Mil) 1,784 2,047 2,288
EPS($) 1.13 1.61 2.10
EPS without NRI($) 1.13 1.61 2.10

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. The open source software development and licensing model originated in academic and research environments. 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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This Software Company Is Set to Improve Oct 30 2014 
Here's Why Investors Should Hold Red Hat For the Long Run Oct 22 2014 
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