tickrz reports
Red Hat Inc (RHT)
Technology | Computer Software & Services
125.58  0.10%
RHT vs COMPUTER SOFTWARE & SERVICES SECTOR & S&P 500
VALUATION
RHTSECTORS&P 500
P/E RATIO69.54514.121.12
EV/EBITDA RATIO39.3323.412.66
P/S RATIO8.445.72.25
P/B RATIO16.36183.45
QUALITY
RETURN ON EQUITY24.93%16.8%13.64%
RETURN ON CAPITAL%18.22%10.09%
NET MARGIN10.52%13.64%9.73%
DIVIDEND ANALYSIS
DIVIDEND YIELD
0%
PAYOUT RATION/A
3 YR DIVIDEND GROWTHN/A
FINANCIAL STRENGTH
PIOTROSKI F SCORE
9 OUT OF 9
DEBT-TO-EQUITY53%
INTEREST COVERAGE17.9x
CURRENT RATIO1.37
GROWTH
5 YR EPS GROWTH13.13%
5 YR SPS GROWTH16.31%
5 YR BPS GROWTH-0.58%
About tickrz
Key Concepts
Great Investors
Red Hat Inc has carved out a durable competitive advantage within its industry
TICKRZBOT SUMMARY
Red Hat Inc receives a C ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here. Here's a summary of Red Hat Inc's factor rankings that are combined together to calculate the tickrz MFM ranking:

FACTOR RANKINGSFACTOR SCREENER 
TICKRZ MFM RANK C / 325PURE VALUE RANKD / 474
DIVIDEND RANKD / NO DIVIDENDMOAT RANKA / 45
FINANCIAL STRENGTH RANKA / 29GROWTH RANKB / 157
MOMENTUM RANKA / 11
GURU ANALYSIS
Buffett Rank D / 378Peter Lynch Rank B / 125
Red Hat Inc ranks 378 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a weak score, meaning it ranks poorly on combined valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Red Hat Inc is probably not for you. The company's moat is strong so it could be worth investigating in the future should its valuation improve.Our Peter Lynch mutli-factor model ranks stocks on their PEG ratio, Financial Strength, margin profile, and their P/Es relative to their respective industry groups. Red Hat Inc ranks 125, a relatively average score.
Alex Roepers Rank C / 237Joel Greenblatt Rank N/A
Alex Roepers, founder of Atlantic Investment Management, looks for stocks trading at low EV/EBITDA multiples with strong and consistent free cash flow. Red Hat Inc ranks 237 out of the S&P 500 constituents on our Roepers-inspired multi-factor model.Unfortunately tickrzbot doesn't have enough information to calculate this stock's Joel Greenblatt ranking.
FACTOR RANKINGS
Value
Pure Value Ranking D / 474
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Red Hat Inc's valuation score is comprised of a P/E ratio of 69.5x, a P/B ratio of 16.4x, a P/S ratio of 8.4x, and an EV/EBITDA ratio of 39.3x. Red Hat Inc ranks 474 out of the S&P 500 constituents on valuation--a relatively weak score.

Quality
Moat A / 45Financial Strength A / 29
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Red Hat Inc appears to have a durable competitive advantage within the Technology sector. Red Hat Inc has a Piotroski F Score of 9 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 17.9x, a debt/equity ratio of 53% and a Moat Rank of 45 translate to a strong Financial Strength score.


Momentum A / 11
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 72.19% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 11. Red Hat Inc's strong 12 month stock performance will appeal to momentum investors.

Yield D / NO DIVIDEND
Value + Yield
Red Hat Inc currently does not pay a dividend so it ranks last among S&P 500 companies using our dividend ranking methodology. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

Growth B / 157
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value produce an average score. 13.1% 5 year annualized EPS growth, 16.3% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of -0.6% combine to produce this average score.

Red Hat Inc (RHT)
Technology | Computer Software & Services
125.58  0.10%


tickrz rank
C
VALUATION RATIOS
P/E Ratio69.54x
P/B Ratio16.36x
P/S Ratio8.44x
EV/EBITDA Ratio39.33x
DIVIDEND ANALYSIS
DIVIDEND YIELD
0%
PAYOUT RATION/A
3 YR DIVIDEND GROWTHN/A
FINANCIAL STRENGTH
PIOTROSKI F SCORE
9 OUT OF 9
DEBT-TO-EQUITY53%
INTEREST COVERAGE17.9x
CURRENT RATIO1.37
MOAT
ROE24.93%
ROIC
Net Margin10.52%
GROWTH
5 YR EPS GROWTH13.13%
5 YR SPS GROWTH16.31%
5 YR BPS GROWTH-0.58%

TICKRZ RANK
Red Hat Inc receives a C ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here.

PURE VALUE
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Red Hat Inc's valuation score is comprised of a P/E ratio of 69.5x, a P/B ratio of 16.4x, a P/S ratio of 8.4x, and an EV/EBITDA ratio of 39.3x. Red Hat Inc ranks 474 out of the S&P 500 constituents on valuation--a relatively weak score.

WARREN BUFFETT RANKING
Red Hat Inc ranks 378 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a weak score, meaning it ranks poorly on combined valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Red Hat Inc is probably not for you. The company's moat is strong so it could be worth investigating in the future should its valuation improve.

MOAT
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Red Hat Inc appears to have a durable competitive advantage within the Technology sector.

FINANCIAL STRENGTH
Red Hat Inc has a Piotroski F Score of 9 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 17.9x, a debt/equity ratio of 53% and a Moat Rank of 45 translate to a strong Financial Strength score.

MOMENTUM
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 72.19% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 11. Red Hat Inc's strong 12 month stock performance will appeal to momentum investors.

VALUE + YIELD
Red Hat Inc currently does not pay a dividend so it ranks last among S&P 500 companies using our dividend ranking methodology. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

GROWTH
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value produce an average score. 13.1% 5 year annualized EPS growth, 16.3% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of -0.6% combine to produce this average score.