RXT (Rackspace Technology) Beneish M-Score: -3.02 (As of Jun. 24, 2026)

What is Rackspace Technology Beneish M-Score?

Rackspace Technology RXT -6.00% 47 Beneish M-Score is -3.02 as of Jun. 24, 2026. GuruFocus rates RXT with a GF Score™ of 47/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,633 Software companies, Rackspace Technology ranks better than 77.21% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Rackspace Technology's Beneish M-Score or its related term are showing as below:

RXT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77 Med: -2.98 Max: -2.28
Current: -3.02

During the past 9 years, the highest Beneish M-Score of Rackspace Technology was -2.28. The lowest was -3.77. And the median was -2.98.

Rackspace Technology Beneish M-Score Related Terms

Rackspace Technology Beneish M-Score Historical Data

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The historical data trend for Rackspace Technology's Beneish M-Score 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.

Rackspace Technology Beneish M-Score Chart

Rackspace Technology Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.64

-2.67

-3.65

-3.12

-3.17

Rackspace Technology Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-3.16	-3.28	-3.20	-3.17	-3.02

RXT vs RDWR, GCT, TUYA: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Rackspace Technology's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Rackspace Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Rackspace Technology's Beneish M-Score falls into.

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Rackspace Technology Inc RXT

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Rackspace Technology Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Rackspace Technology for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.993

0.528 * 1.0528

0.404 * 0.9804

0.892 * 0.9951

0.115 * 0.992

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8546

4.679 * -0.119042

0.327 * 1.0577

-3.02

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $266 Mil.
Revenue was 678.1 + 682.8 + 671.2 + 666.3 = $2,698 Mil.
Gross Profit was 119.1 + 120.4 + 129.9 + 129.2 = $499 Mil.
Total Current Assets was $535 Mil.
Total Assets was $2,765 Mil.
Property, Plant and Equipment(Net PPE) was $720 Mil.
Depreciation, Depletion and Amortization(DDA) was $361 Mil.
Selling, General, & Admin. Expense(SGA) was $579 Mil.
Total Current Liabilities was $786 Mil.
Long-Term Debt & Capital Lease Obligation was $3,045 Mil.
Net Income was 8.3 + -32.7 + -67.1 + -54.5 = $-146 Mil.
Non Operating Income was 52.2 + -5.5 + -3.9 + -3.5 = $39 Mil.
Cash Flow from Operations was 5.1 + 59.7 + 70.7 + 8.4 = $144 Mil.

Total Receivables was $269 Mil.
Revenue was 665.4 + 685.6 + 675.8 + 684.9 = $2,712 Mil.
Gross Profit was 126.9 + 131.7 + 137.5 + 131.4 = $528 Mil.
Total Current Assets was $582 Mil.
Total Assets was $2,966 Mil.
Property, Plant and Equipment(Net PPE) was $732 Mil.
Depreciation, Depletion and Amortization(DDA) was $362 Mil.
Selling, General, & Admin. Expense(SGA) was $681 Mil.
Total Current Liabilities was $735 Mil.
Long-Term Debt & Capital Lease Obligation was $3,150 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(265.8 / 2698.4)	/	(269 / 2711.7)
	=	0.098503	/	0.0992
	=	0.993

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(527.5 / 2711.7)	/	(498.6 / 2698.4)
	=	0.194527	/	0.184776
	=	1.0528

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (535.1 + 720.1) / 2765.4)	/	(1 - (581.8 + 732.1) / 2966.1)
	=	0.546105	/	0.557028
	=	0.9804

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2698.4	/	2711.7
	=	0.9951

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(362.1 / (362.1 + 732.1))	/	(360.5 / (360.5 + 720.1))
	=	0.330927	/	0.333611
	=	0.992

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(578.7 / 2698.4)	/	(680.5 / 2711.7)
	=	0.21446	/	0.25095
	=	0.8546

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3045.2 + 785.6) / 2765.4)	/	((3150 + 734.8) / 2966.1)
	=	1.385261	/	1.309733
	=	1.0577

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-146 - 39.3	-	143.9)	/	2765.4
	=	-0.119042

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Rackspace Technology has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -3.02 mean?

Rackspace Technology (RXT) has a Beneish M-Score of -3.02 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Rackspace Technology and its competitors. According to the industry distribution chart, Rackspace Technology ranks #600 out of 2633 companies in the Software industry, placing it in the top 22.8%.

Is Rackspace Technology's Beneish M-Score too high?

Rackspace Technology's current Beneish M-Score is -3.02. Based on the distribution chart, Rackspace Technology ranks #600 out of 2633 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Beneish M-Score compare to RDWR and GCT?

According to the Software industry distribution chart, Rackspace Technology ranks #600 out of 2633 companies for Beneish M-Score. This places Rackspace Technology in the top 23% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Software company?

A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score 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 Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Rackspace Technology and its competitors. Rackspace Technology's current Beneish M-Score is -3.02. 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 Beneish M-Score is -3.02. 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 Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Rackspace Technology (RXT), the current Beneish M-Score is -3.02 as of Jun. 24, 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:

Beneish M-Score: -3.02
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
GF Score™: 47/100 with 7 warning signs

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 Business Description

Industry Technology Software

Comparable Companies RDWR GCT TUYA PGY KDK PICS PRGS RZLV EVTC AI MSFT ORCL PLTR PANW CRWD FTNT SNPS HKSE:02513 NET CRWV

Address 19122 US Highway 281 N, Suite 128, San Antonio, TX, USA, 78258-7667

Website https://www.rackspace.com

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.

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$6.82

Price

$1.42

GF Value

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