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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 : 5/10

vs
industry
vs
history
Cash to Debt 12.28
RST's Cash to Debt is ranked higher than
71% of the 2078 Companies
in the Global Software - Application industry.

( Industry Median: 5.21 vs. RST: 12.28 )
RST' s 10-Year Cash to Debt Range
Min: 1.63   Max: No Debt
Current: 12.28

Equity to Asset 0.30
RST's Equity to Asset is ranked lower than
54% of the 2008 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. RST: 0.30 )
RST' s 10-Year Equity to Asset Range
Min: 0.3   Max: 0.74
Current: 0.3

0.3
0.74
F-Score: 2
Z-Score: 0.47
M-Score: -3.06
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 : 4/10

vs
industry
vs
history
Operating margin (%) -20.99
RST's Operating margin (%) is ranked lower than
52% of the 2062 Companies
in the Global Software - Application industry.

( Industry Median: 5.48 vs. RST: -20.99 )
RST' s 10-Year Operating margin (%) Range
Min: -10.58   Max: 13.15
Current: -20.99

-10.58
13.15
Net-margin (%) -21.52
RST's Net-margin (%) is ranked lower than
51% of the 2062 Companies
in the Global Software - Application industry.

( Industry Median: 3.74 vs. RST: -21.52 )
RST' s 10-Year Net-margin (%) Range
Min: -13.11   Max: 6.63
Current: -21.52

-13.11
6.63
ROE (%) -49.12
RST's ROE (%) is ranked lower than
56% of the 2001 Companies
in the Global Software - Application industry.

( Industry Median: 7.10 vs. RST: -49.12 )
RST' s 10-Year ROE (%) Range
Min: -22.69   Max: 19.54
Current: -49.12

-22.69
19.54
ROA (%) -20.27
RST's ROA (%) is ranked lower than
53% of the 2086 Companies
in the Global Software - Application industry.

( Industry Median: 3.75 vs. RST: -20.27 )
RST' s 10-Year ROA (%) Range
Min: -12.96   Max: 11.15
Current: -20.27

-12.96
11.15
ROC (Joel Greenblatt) (%) -250.84
RST's ROC (Joel Greenblatt) (%) is ranked lower than
54% of the 2071 Companies
in the Global Software - Application industry.

( Industry Median: 28.79 vs. RST: -250.84 )
RST' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -135.46   Max: 188.71
Current: -250.84

-135.46
188.71
Revenue Growth (%) 0.20
RST's Revenue Growth (%) is ranked higher than
60% of the 1669 Companies
in the Global Software - Application industry.

( Industry Median: 5.60 vs. RST: 0.20 )
RST' s 10-Year Revenue Growth (%) Range
Min: -39.5   Max: 13.7
Current: 0.2

-39.5
13.7
» RST's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

RST Guru Trades in Q4 2013

John Rogers 3,451,460 sh (+52.25%)
Jim Simons 937,394 sh (+13.83%)
Zeke Ashton 275,000 sh (+7.84%)
David Nierenberg 1,689,887 sh (unchged)
Whitney Tilson Sold Out
» More
Q1 2014

RST Guru Trades in Q1 2014

Jim Simons 1,064,700 sh (+13.58%)
John Rogers 3,834,235 sh (+11.09%)
David Nierenberg 1,689,887 sh (unchged)
Zeke Ashton Sold Out
» More
Q2 2014

RST Guru Trades in Q2 2014

David Nierenberg 1,689,887 sh (unchged)
Jim Simons 1,061,300 sh (-0.32%)
John Rogers 3,801,455 sh (-0.85%)
» More
Q3 2014

RST Guru Trades in Q3 2014

John Rogers 4,030,004 sh (+6.01%)
David Nierenberg 1,689,887 sh (unchged)
Jim Simons 983,500 sh (-7.33%)
» More
» Details

Insider Trades

Latest Guru Trades with RST

(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
Whitney Tilson 2013-12-31 Sold Out 0.39%$11.44 - $16.38 $ 10.42-24%0
John Rogers 2013-12-31 Add 52.25%0.18%$11.44 - $16.38 $ 10.42-24%3451460
Whitney Tilson 2013-09-30 Reduce -83.13%1.08%$14.98 - $17.13 $ 10.42-35%15186
John Rogers 2013-09-30 Add 138.22%0.31%$14.98 - $17.13 $ 10.42-35%2266993
Whitney Tilson 2013-06-30 New Buy1.3%$14.63 - $18.13 $ 10.42-36%90000
John Rogers 2013-06-30 Add 48.88%0.08%$14.63 - $18.13 $ 10.42-36%951654
John Rogers 2013-03-31 Add 90.15%0.08%$11.58 - $15.4 $ 10.42-21%639228
John Rogers 2012-12-31 Add 37.67%0.02%$10.56 - $13.22 $ 10.42-15%336165
John Rogers 2012-09-30 Add 78.64%0.03%$10.5 - $14.19 $ 10.42-17%244180
John Rogers 2012-03-31 Add 166.56%0.02%$6.98 - $10.42 $ 10.4226%125788
John Rogers 2011-12-31 New Buy0.01%$6.67 - $10.94 $ 10.4227%47190
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/B 2.65
RST's P/B is ranked higher than
72% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 3.38 vs. RST: 2.65 )
RST' s 10-Year P/B Range
Min: 0.85   Max: 4.58
Current: 2.65

0.85
4.58
P/S 0.83
RST's P/S is ranked higher than
85% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 2.60 vs. RST: 0.83 )
RST' s 10-Year P/S Range
Min: 0.53   Max: 2.48
Current: 0.83

0.53
2.48
EV-to-EBIT -3.15
RST's EV-to-EBIT is ranked higher than
50% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 34.56 vs. RST: -3.15 )
RST' s 10-Year EV-to-EBIT Range
Min: -76   Max: 239.5
Current: -3.15

-76
239.5
Current Ratio 0.88
RST's Current Ratio is ranked lower than
55% of the 2043 Companies
in the Global Software - Application industry.

( Industry Median: 1.91 vs. RST: 0.88 )
RST' s 10-Year Current Ratio Range
Min: 0.88   Max: 2.71
Current: 0.88

0.88
2.71
Quick Ratio 0.84
RST's Quick Ratio is ranked lower than
54% of the 2043 Companies
in the Global Software - Application industry.

( Industry Median: 1.78 vs. RST: 0.84 )
RST' s 10-Year Quick Ratio Range
Min: 0.84   Max: 2.52
Current: 0.84

0.84
2.52

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.21
RST's Price/DCF (Projected) is ranked higher than
88% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 8.40 vs. RST: 1.21 )
RST' s 10-Year Price/DCF (Projected) Range
Min: 0.96   Max: 1.39
Current: 1.21

0.96
1.39
Price/Median PS Value 0.77
RST's Price/Median PS Value is ranked higher than
89% of the 2271 Companies
in the Global Software - Application industry.

( Industry Median: 1.18 vs. RST: 0.77 )
RST' s 10-Year Price/Median PS Value Range
Min: 0.54   Max: 2.04
Current: 0.77

0.54
2.04
Earnings Yield (Greenblatt) -31.70
RST's Earnings Yield (Greenblatt) is ranked lower than
59% of the 2056 Companies
in the Global Software - Application industry.

( Industry Median: 3.80 vs. RST: -31.70 )
RST' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 14.1
Current: -31.7

0.4
14.1

Business Description

Industry: Application Software » Software - Application
Compare: » details
Traded in other countries:RS8.Germany,
Rosetta Stone Inc is a corporation incorporated in Delaware in 2005. The Company offers courses in 30 languages across a range of formats, including online subscriptions, digital downloads, mobile apps, and CD packages. It provides intuitive, learning programs that are available online and via digital download or CD. It offers mobile apps for both tablet and smartphone use to enable learners to continue their lessons on the go. The Rosetta Stone Kids products provide technology-based learning solutions for children's that aims at early childhood language and literacy. It also offers technology-based learning products for schools, businesses and organizations. It markets its products through various channels like direct to consumer, through retailers, home school, educational institutions etc. It competes with EF Englishtown, Global English, Wall Street Institute, Inlingua, Imagine Learning. The Company has six U.S. patents and eight foreign patents. The Company is subject to regulations and laws directly applicable to providers of online services.
» More Articles for RST

Headlines

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Nierenberg Sheds Shares of Top Holding, Move Inc. Nov 30 2012 
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Rosetta Stone RST – The Negatives Outweigh the Positives Sep 19 2010 
Rosetta Stone Inc (RST) CFO Brian D Helman sells 86,792 Shares Aug 20 2010 
Rosetta Stone Inc (RST) COO Eric Eichmann sells 1,700 Shares Jul 19 2010 
Rosetta Stone Inc (RST) COO Eric Eichmann sells 1,700 Shares Jun 17 2010 

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