RNG

RingCentral Inc

TMT


Presented:01/24/2019
Price:$89.27
Cap:$7.17B
Current Price:$32.83
Cap:$3.01B

Presented

Date01/24/2019
Price$89.27
Market Cap$7.17B
Ent Value$7.22B
P/E RatioN/A
Book Value$3.73
Div Yield0%
Shares O/S80.33M
Ave Daily Vol1,005,008
Short Int6.98%

Current

Price$32.83
Market Cap$3.01B
RingCentral, Inc. engages in the provision of global enterprise cloud communications and collaboration solutions. Its solutions provide a single user identity across multiple locations and devices, including smartphones, tablets, PCs and desk phones; and allow for communication across multiple modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax. It sells its products under the RingCentral Professional, RingCentral Glip, and RingCentral Fax brands. The company was founded by Vlad Vendrow and Vladimir Shmunis in 1999 and is headquartered in Belmont, CA.

Publicly traded companies mentioned herein: AT&T Inc (T), Avaya Holdings Corp (AVYA), BT Group PLC (BT; BT/A LN), Cisco Systems Inc (CSCO), RingCentral Inc (RNG), Verizon Communications Inc (VZ), Vonage Holdings Corp (VG)

Highlights

In the presenter’s opinion, RingCentral (RNG) is a “solid company” with an underappreciated growth story. Looking near- and longer-term, RNG should be able to increase its market share by providing more customers, up- and down-market, with cloud-based telephony solutions. AT&T was re-signed in Sept [2018] after a “short hiatus,” and RNG also extended the Cloud Phone/Cloud Work relationship with BT in the 4th quarter of 2018. Given demand for cloud communications from large and small customers, the penetration opportunity could lead to a “better than consensus” top line story for at least the next 2 - 3 years. In this scenario, revenue growth would remain in the 30% - 35% range, not drop to 20% - 25% YoY as the Street is forecasting for 2019 and ‘20. Holding the forward TEV/Revenue multiple on Street estimates constant at 8.5x suggests the stock could trade up to $120 over the next 12 months (for a 36% gain on the long position).

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Idea Discussion

Commentor 1 - 2 weeks ago

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