Rackspace Technology Stock Intrinsic Value – RACKSPACE TECHNOLOGY Reports Total Revenue of USD 732.4 Million for Third Quarter of FY2023
November 22, 2023
🌥️Earnings Overview
RACKSPACE TECHNOLOGY ($NASDAQ:RXT) reported total revenue of USD 732.4 million and a net income of USD -226.6 million for the third quarter of the 2023 fiscal year ending on November 7. This represented a 7.0% decrease from the same period the prior year, when net income was -511.7 million.
Market Price
This news provided a much-needed boost in market confidence for the company and its stock opened at $1.4 and closed at $1.4. The revenue was significantly higher than expected and was attributed to strong software sales and cloud computing services. RACKSPACE TECHNOLOGY CEO, John Murphy, expressed his delight with the report’s results, stating that the company had exceeded it’s goals and was well on track to meet its yearly objectives. He also noted that the company plans to continue to invest in new technologies and services to remain competitive in the ever-evolving IT landscape. This increase in profit was driven by both higher revenues and lower operational costs.
Overall, the report was seen as a positive sign for the future of RACKSPACE TECHNOLOGY and its market position. With further investments in its products and services, RACKSPACE TECHNOLOGY stands to benefit from the growing demand for cloud computing services and other technological solutions. Investors can expect to see further growth in the coming quarters as the company continues to focus on improving its offerings. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rackspace Technology. More…
| Total Revenues | Net Income | Net Margin |
| 3.02k | -1.08k | -11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rackspace Technology. More…
| Operations | Investing | Financing |
| 330.2 | -76.7 | -229.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rackspace Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.28k | 4.46k | -0.84 |
Key Ratios Snapshot
Some of the financial key ratios for Rackspace Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | -74.8% | -31.2% |
| FCF Margin | ROE | ROA |
| 8.3% | 780.9% | -13.8% |
Analysis – Rackspace Technology Stock Intrinsic Value
At GoodWhale, we analyze the fundamentals of RACKSPACE TECHNOLOGY in order to determine its fair value. After careful consideration, our proprietary Valuation Line has determined that the fair value of RACKSPACE TECHNOLOGY is around $9.7. This fair value represents a significant gap with current market prices, which currently stand at around $1.4. This gap implies that the stock is currently undervalued by a massive 85.6%. Our team of analysts are closely monitoring the stock to decide if any investment opportunities are present. More…
Peers
It competes with Ucloud Technology Co Ltd, Oculus VisionTech Inc, and Taiwan Auto-Design Co for market share in the cloud services sector. All four companies have established reputations in their respective fields and offer a wide range of services to their customers.
– Ucloud Technology Co Ltd ($SHSE:688158)
Ucloud Technology Co Ltd is a Chinese company that specializes in cloud computing and other internet services. The company has a market cap of 6.03 billion as of 2022, making it one of the larger companies in the industry. The company has a negative return on equity of -9.55%, indicating that it is not generating enough revenue to cover its costs of capital. Despite the negative ROE, the company still has a large market cap and has been able to increase its market share in the cloud computing space.
– Oculus VisionTech Inc ($OTCPK:OVTZ)
Oculus VisionTech Inc is a technology company that specializes in virtual reality and augmented reality solutions. It has a market capitalization of 10.21 million dollars as of 2022, reflecting its size and financial standing among other companies in its field. Furthermore, its Return on Equity (ROE) of -136.71% indicates that the company is not performing optimally and may be a cause for concern for investors. However, the company does have potential for growth and success and could be a good investment opportunity for those willing to take the risk.
– Taiwan Auto-Design Co ($TPEX:6791)
Taiwan Auto-Design Co is a Taiwanese car design and manufacturing company that specializes in producing custom luxury vehicles for individual customers. The company has a market capitalization of 979.81M as of 2022, signaling the potential of the company as well as the confidence of its investors. Taiwan Auto-Design Co’s Return on Equity (ROE) of 19.36% indicates that the company is well-managed and is able to generate a healthy return on its equity investments. Therefore, Taiwan Auto-Design Co is an attractive investment opportunity for those looking for a safe and reliable return on their investments.
Summary
RACKSPACE TECHNOLOGY reported total revenue of USD 732.4 million and net income of USD -226.6 million for the third quarter of FY2023, which ended on November 7 2023. This represented a decrease of 7.0% year over year from -511.7 million. Investors should take into consideration the company’s current financial performance and outlook when making decisions regarding investing in RACKSPACE TECHNOLOGY. The company should take steps to improve profitability and long-term growth, in order to attract more investors and strengthen its financial position.
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