The historical rank and industry rank for Rackspace Technology's FCF Margin % or its related term are showing as below:
RXT'
s FCF Margin % Range Over the Past 10 Years
Min: -2.6 Med: 4.77 Max: 9.4
Current: 2.85
During the past 9 years, the highest FCF Margin % of Rackspace Technology was 9.40%. The lowest was -2.60%. And the median was 4.77%.
RXT's FCF Margin % is ranked better than 51.37% of 2811
companies
in the Software industry
Industry Median: 2.4
vs RXT: 2.85
Rackspace Technology FCF Margin % Related Terms
Rackspace Technology FCF Margin % Historical Data
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The historical data trend for Rackspace Technology's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Rackspace Technology's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rackspace Technology FCF Margin % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rackspace Technology (RXT) has a FCF Margin % of -1.39% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Rackspace Technology and its competitors. According to the industry distribution chart, Rackspace Technology ranks #1367 out of 2811 companies in the Software industry, placing it in the top 48.6%.
Is Rackspace Technology's FCF Margin % too high?
Rackspace Technology's current FCF Margin % is -1.39%. Based on the distribution chart, Rackspace Technology ranks #1367 out of 2811 companies in the Software industry, which is above the industry midpoint. Overall, Rackspace Technology has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's FCF Margin % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1367 out of 2811 companies for FCF Margin %. This puts Rackspace Technology in the upper half of its industry. The industry median FCF Margin % is 2.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.40, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Rackspace Technology and its competitors. For the Software industry, the median FCF Margin % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current FCF Margin % is -1.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Based on GuruFocus' analysis, Rackspace Technology (RXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.42, compared to a current price of $6.82 — trading 380.3% above its estimated fair value. The current FCF Margin % is -1.39%. Rackspace Technology's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current FCF Margin % is -1.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rackspace Technology (RXT) Overvalued in 2026?
Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued.
The current stock price of $6.82 is trading 380.3% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
FCF Margin %: -1.39%
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
No single metric tells the full story. See the RXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
47GF Score
Get the complete analysis for RXT
FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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