0.99%
-1.44%
15.17%
20.94%
34.87%
-8.89%
45.39%

Company Description

Ribbon Communications Inc.provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally.It operates through two segments, Cloud and Edge, and IP Optical Networks.


The Cloud and Edge segment provides software and hardware products; and solutions and services for enabling voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications and unified communications and collaboration.It also offers session border controller and network transformation products.This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks.


It also provides multiple solutions for VoIP, VoLTE, VoNR, and UC&C in network, on-premises, or via the telco cloud.The IP Optical Networks segment provides hardware and software solutions for IP networking, switching, routing, and optical transport to support and enable technologies, such as 5G, distributed cloud computing, and corresponding applications.It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, legacy NTR, and transport solutions for wholesale carriers.


This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises.It also provides advanced analytics solutions and next generation products that provides cloud-native and streaming analytics platform for networks and subscribers.The company was formerly known as Sonus Networks, Inc.


and changed its name to Ribbon Communications Inc.in November 2017.Ribbon Communications Inc.


was founded in 1997 and is headquartered in Plano, Texas.

Market Data

Last Price 4.1
Change Percentage 0.99%
Open 4.06
Previous Close 4.06
Market Cap ( Millions) 719
Volume 582833
Year High 4.39
Year Low 2.47
M A 50 4.0
M A 200 3.43

Financial Ratios

FCF Yield -2.06%
Dividend Yield 0.00%
ROE -12.76%
Debt / Equity 96.36%
Net Debt / EBIDTA 1094.65%
Price To Book 1.81
Price Earnings Ratio -13.38
Price To FCF -48.58
Price To sales 0.89
EV / EBITDA 33.84

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Cloud and Edge

Expected Growth : 6 %

What the company do ?

Ribbon Communications' Cloud and Edge solutions enable secure, real-time communications and data processing at the network edge, reducing latency and improving performance.

Why we expect these perspectives ?

Ribbon Communications' Cloud and Edge segment growth is driven by increasing demand for secure, real-time communications and digital transformation. Key drivers include adoption of cloud-based unified communications, growth in IoT and 5G networks, and rising need for edge computing and security solutions. Additionally, Ribbon's strong partnerships and innovative product offerings contribute to its 6% growth.

Segment nΒ°2 -> Internet Protocol Optical Networks

Expected Growth : 4 %

What the company do ?

Internet Protocol Optical Networks from Ribbon Communications Inc. is a technology that integrates IP and optical networking to provide scalable, high-capacity, and low-latency networks for service providers and enterprises.

Why we expect these perspectives ?

Ribbon Communications Inc.'s Internet Protocol Optical Networks growth is driven by increasing demand for high-speed data transmission, proliferation of 5G networks, and rising need for network infrastructure upgrades. Additionally, growing adoption of cloud computing, IoT, and big data analytics are fueling the demand for high-capacity optical networks, contributing to a growth rate of 4.

Ribbon Communications Inc. Products

Product Range What is it ?
K2 A cloud-optimized session border controller (SBC) that provides secure, scalable, and highly available real-time communications services
Sonar A software-based SBC that enables secure, scalable, and highly available real-time communications services in cloud and hybrid environments
Apollo A scalable and highly available SBC that provides secure real-time communications services for large-scale deployments
G9 A high-performance, scalable, and highly available SBC that provides secure real-time communications services for large-scale deployments
Cloud UC A cloud-based unified communications (UC) solution that provides a suite of collaboration tools, including voice, video, messaging, and conferencing
EdgeMarc A family of intelligent edge devices that provide secure, scalable, and highly available real-time communications services at the network edge
PSX A policy and routing engine that provides advanced call control and routing capabilities for real-time communications services

Ribbon Communications Inc.'s Porter Forces

Ribbon Communications Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the telecommunications industry.

Ribbon Communications Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative suppliers.

Ribbon Communications Inc. relies on a few key suppliers for critical components, which gives these suppliers some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge established players like Ribbon Communications Inc.

The telecommunications industry is highly competitive, with several established players competing for market share. Ribbon Communications Inc. faces intense competition from rivals, which can lead to pricing pressure and reduced margins.

Capital Structure

Value
Debt Weight 39.99%
Debt Cost 5.00%
Equity Weight 60.01%
Equity Cost 9.80%
WACC 7.88%
Leverage 66.63%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
GSAT Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, …
OOMA Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications …
GOGO Gogo Inc., through its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. It operates through Commercial Aviation North America (CA-NA), Commercial Aviation Rest …
ATEX Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks, …
CNSL Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States. It offers high-speed broadband Internet access …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
4.1$
Current Price
4.1$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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