Quality Investor

RingCentral, Inc.

Rank #5Value

RNG · NYSE · Technology

RingCentral, Inc. (RNG) — Rank #5 by gross profitability (GP/assets 1.30) · ROE -7.1% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001384905 · all metrics point-in-time as of the filing date.

About

RingCentral, Inc., an agentic voice AI–powered cloud business communication services provider, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging.

Show more

The company's products include RingEX, a AI-powered unified communications as a service platform for collaboration across voice, messaging, and video; RingCentral Contact Center, a contact center solution that delivers AI-powered omni-channel and workforce engagement solutions; RingCentral Customer Engagement Bundle, a comprehensive solution that includes phone, messaging, and SMS for businesses; and RingCX, a contact center as a service solution for AI-powered customer engagement with CRM integrations. It also offers artificial intelligence (AI) solutions, such as AI Receptionist, a voice AI agent that automates and handles inbound communication; AI Virtual Assistant, which provides real time call and meeting summaries, capturing key points, open questions and action items; AI-based Quality Management, an automated conversation evaluation platform to identify compliance risks, coaching opportunities, and performance insights; AI Agent Assist, a real-time AI guidance for agents; AI Supervisor Assist, a real-time AI insights and recommendations for supervisors; and RingCentral Events, a virtual and hybrid events platform for multi-session conferences, branded experiences, registration, and attendee networking with AI-powered engagement tools. It serves a range of industries, including healthcare, financial and professional services, retail, state and local government, education, legal services, real estate, technology, insurance, construction and hospitality, and others. The company sells its products to enterprise customers, and small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc.

was incorporated in 1999 and is headquartered in Belmont, California.

Industry
Software - Application
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

RNG-72.4% · -22.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$6.04B

P/E (annual)

150.8

P/S (annual)

2.4

P/B

P/OCF (annual)

9.8

Shareholder Yield

1.0%

Employees

7,378

Industry

Software - Application

Exchange

NYSE

Signal Flags

3 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
1.30
Return on equity
-7.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
Current ratio
1.11×
Net cash
-$1.01B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
10.7%

Growth

2/2 pass
Revenue growth
4.8%
Piotroski F-Score
8 / 9
Share dilution
-1.0%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-0.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.0% — per-share value needs a total required return of -1.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-4.0%

r = 10% (base)

-0.2%

r = 12%

3.1%

Net debt / market cap: 15.3%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $587.3M3Y mean FCF: $473.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

1.3xFair
1.1xmed 1.3x7.2x

P / GP

Price / gross profit per share

1.9xCheap
1.6xmed 1.9x10.1x

P / FCF

Price / free cash flow per share

5.7xCheap
5.7xmed 7.6x93.7x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

1.30

Primary signal (Novy-Marx).

2nd of 13 SIC 7374 peers

Return on equity

-7.1%

Gross margin

71.2%

6th of 13 SIC 7374 peers

Revenue growth (YoY)

4.8%

RPO growth (YoY)

0.0%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

8.1%

Revenue CAGR (5Y)

16.3%

Earnings CAGR (3Y)

FCF CAGR (3Y)

54.7%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

Current ratio

1.11×

11th of 13 SIC 7374 peers

Quick ratio

0.76×

Net cash

-$1.01B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$587.32M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

12.54

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

10.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup
Value