Rackspace TechnologyRXT -7.44%47 OCF Yield % is 8.60 as of Jun. 24, 2026, which is 69% below its 10-year median of 27.72. 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 2,865 Software companies, Rackspace Technology ranks better than 69.49% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Rackspace Technology OCF Yield % Related Terms
Rackspace Technology OCF Yield % Historical Data
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The historical data trend for Rackspace Technology's OCF Yield % 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 Yield %, along with its competitors' market caps and OCF Yield % 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 Yield % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's OCF Yield % 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 Yield % of 8.60 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Rackspace Technology and its competitors. This is 69% below median its historical median of 27.72. Over the past decade, Rackspace Technology's OCF Yield % has ranged from 2.34 to 147.42. According to the industry distribution chart, Rackspace Technology ranks #874 out of 2865 companies in the Software industry, placing it in the top 30.5%.
Is Rackspace Technology's OCF Yield % too high?
Rackspace Technology's current OCF Yield % of 8.60 is 69% below median its 10-year median of 27.72. Over the past 10 years, this metric has ranged from a low of 2.34 to a high of 147.42. The Software industry median OCF Yield % is 3.08. Rackspace Technology's value of 8.60 is 179.2% above this industry median. Based on the distribution chart, Rackspace Technology ranks #874 out of 2865 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 OCF Yield % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #874 out of 2865 companies for OCF Yield %. This puts Rackspace Technology in the upper half of its industry. The industry median OCF Yield % is 3.08. Rackspace Technology's value of 8.60 is 179.2% above this benchmark. Historically, Rackspace Technology's own OCF Yield % has ranged from 2.34 to 147.42 over the past decade. While the company's 10-year median is 27.72 vs. the industry median of 3.08, Rackspace Technology has consistently been above 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 Yield % for a Software company?
The median OCF Yield % among Software companies is 3.08, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current OCF Yield % of 8.60 is 179.2% above 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 Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Rackspace Technology and its competitors. For the Software industry, the median OCF Yield % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current OCF Yield % is 8.60, which is 69% below median its own 10-year median of 27.72. 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 $6.72 — trading 372.9% above its estimated fair value. The current OCF Yield % is 8.60, which is 69% below median its 10-year median of 27.72 and 179.2% above the Software industry median of 3.08. 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 Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current OCF Yield % is 8.60 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 $6.72 is trading 372.9% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
OCF Yield %: 8.60 (69% below median its 10-year median of 27.72)
GF Value™: $1.42 vs. price of $6.72 (372.9% above fair value)
Industry Position: 179.2% above the Software median (#874 of 2865)
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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