RBBN

Ribbon Communications Inc.

Fundamental data last updated:August 30, 2026

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company profile

SECTOR

Communication Services

industry

Telecommunications Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

17.30

Market Cap ($M USD)

$544.27M

Forward P/E

15.85

PEG

1.73

PRICE TO SALES

0.66

PRICE TO BOOK

1.30

EV / EBITDA

18.76

5-Year Average P/E

Free Cash Flow Yield

3.06%

DCF Value

$11.43

Graham Number

$3.10

Price to FCF

32.65

EV to FCF

52.49

Earnings Yield

5.78%

FCF Yield

3.06%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.18

Next Year EPS Growth Estimate

$0.20

Next Year Revenue Growth Estimate

$882.90M

Return on Equity (ROE)

7.85%

FREE CASH FLOW

Operating Margin

-0.47%

Debt-to-Equity

0.90

Piotroski F-Score

6

Altman Z-Score

-0.71

Return on Invested Capital (ROIC)

-0.45%

Current Ratio

1.37

Quick Ratio

1.09

Net Debt to EBITDA

7.09

Interest Coverage

-0.09

Gross Profit margin

48.02%

FCF PER SHARE

$0.09

REVENUE PER SHARE

$4.70

Gainseekers Quantitative Analysis

Summary

RBBN’s valuation paints a complex picture. Recent pricing indicated it traded significantly below its DCF value, suggesting a potential undervaluation. However, the Altman Z-score of -0.71 raises red flags about financial distress. The Forward P/E of 14.26 and an Earnings Yield of 6.42% imply moderate growth expectations, yet the market seems cautious. Overall, the stock appears undervalued on a DCF basis but carries substantial risk.

AI Exposure / Tech Reliance

Operating in the Telecommunications Services industry, Ribbon Communications is well-positioned to leverage AI and tech advancements. As communication networks evolve, their adaptability to integrate AI-driven solutions could enhance service offerings. This positioning may provide resilience against disruptive tech shifts.

The Bull Case

For value or GARP investors, RBBN offers intriguing prospects. Despite a negative ROIC of -0.45%, the Piotroski F-Score of 6 indicates some financial health. The FCF Yield of 3.40% suggests potential for cash generation, while a gross profit margin of 48% hints at pricing power. These factors could appeal to those seeking undervalued opportunities with room for operational improvement.

The Bear Case

The bear case for RBBN is compelling. The negative operating margin of -0.47% and a high EV to EBITDA ratio of 17.59 signal inefficiencies. With a Net Debt to EBITDA of 7.09, the company is heavily leveraged, raising concerns about financial stability. Additionally, the Altman Z-score suggests significant distress, making it a risky bet despite its low price-to-sales ratio.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$3.50

Institutional Ownership %

1-Year Beta

1.27

Insider Buying % (6 Mo)

Distance to 52-Week High

38.83%

Distance to 52-Week Low

41.75%

EARNINGS SURPRISE %

16.67%

50-DAY SMA

$2.53

200-DAY SMA

$2.97

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.