Rackspace TechnologyRXT -9.37%47 OCF Margin % is 0.75% as of Mar. 2026, which is 94% below its 10-year median of 12.01. 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 2,812 Software companies, Rackspace Technology ranks worse than 53.88% on this metric.
The historical rank and industry rank for Rackspace Technology's OCF Margin % or its related term are showing as below:
RXT'
s OCF Margin % Range Over the Past 10 Years
Min: 1.46 Med: 12.01 Max: 17.52
Current: 5.33
During the past 9 years, the highest OCF Margin % of Rackspace Technology was 17.52%. The lowest was 1.46%. And the median was 12.01%.
RXT's OCF Margin % is ranked worse than 53.88% of 2812
companies
in the Software industry
Industry Median: 6.745
vs RXT: 5.33
Rackspace Technology OCF Margin % Related Terms
Rackspace Technology OCF Margin % Historical Data
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The historical data trend for Rackspace Technology's OCF 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 OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's OCF 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 OCF Margin % of 0.75% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Rackspace Technology and its competitors. This is 94% below median its historical median of 12.01. Over the past decade, Rackspace Technology's OCF Margin % has ranged from 1.46 to 17.52. According to the industry distribution chart, Rackspace Technology ranks #1515 out of 2812 companies in the Software industry, placing it in the top 53.9%.
Is Rackspace Technology's OCF Margin % too high?
Rackspace Technology's current OCF Margin % of 0.75% is 94% below median its 10-year median of 12.01. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 17.52. The Software industry median OCF Margin % is 6.75. Rackspace Technology's value of 0.75% is 88.9% below this industry median. Based on the distribution chart, Rackspace Technology ranks #1515 out of 2812 companies in the Software industry, which is below 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 OCF Margin % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1515 out of 2812 companies for OCF Margin %. This places Rackspace Technology in the lower half of its industry. The industry median OCF Margin % is 6.75. Rackspace Technology's value of 0.75% is 88.9% below this benchmark. Historically, Rackspace Technology's own OCF Margin % has ranged from 1.46 to 17.52 over the past decade. While the company's 10-year median is 12.01 vs. the industry median of 6.75, Rackspace Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.75, based on 2,812 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current OCF Margin % of 0.75% is 88.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Rackspace Technology and its competitors. For the Software industry, the median OCF Margin % is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current OCF Margin % is 0.75%, which is 94% below median its own 10-year median of 12.01. 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 $6.58 — trading 363% above its estimated fair value. The current OCF Margin % is 0.75%, which is 94% below median its 10-year median of 12.01 and 88.9% below the Software industry median of 6.75. 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 OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current OCF Margin % is 0.75% 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 $6.58 is trading 363% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
OCF Margin %: 0.75% (94% below median its 10-year median of 12.01)
GF Value™: $1.42 vs. price of $6.58 (363% above fair value)
Industry Position: 88.9% below the Software median (#1515 of 2812)
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
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