Rackspace Technology, Inc. (RXT) Financial Ratios
8 years of historical data (2018–2025) · Technology · Software - Infrastructure
EV/EBITDA
↑
17.20
↑+24% vs avg
5yr avg: 13.90
30Y Low13.0·High14.5
P/FCF
↓
9.59
↑+110% vs avg
5yr avg: 4.57
30Y Low1.5·High10.7
P/B Ratio
↓
N/A
—
5yr avg: 1.55
30Y Low1.0·High2.5
ROE
↓
N/A
—
5yr avg: -150.4%
30Y Low-353%·High-11%
Debt/EBITDA
↑
13.96
↑+26% vs avg
5yr avg: 11.04
30Y Low6.3·High14.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RXT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Rackspace Technology, Inc. currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 9.6x P/FCF, 110% above the 5-year average of 4.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $869M | $232M | $497M | $431M | $623M | $2.8B | $3.4B | — | — |
| Enterprise Value | $4.0B | $3.4B | $3.6B | $3.6B | $4.2B | $6.5B | $7.3B | — | — |
| P/E Ratio → | -3.71 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.32 | 0.09 | 0.18 | 0.15 | 0.20 | 0.93 | 1.26 | — | — |
| P/B Ratio | — | — | — | — | 0.99 | 2.11 | 2.47 | — | — |
| P/FCF | 9.59 | 2.56 | — | 1.55 | 3.48 | 10.68 | 17115.88 | — | — |
| P/OCF | 5.74 | 1.53 | 12.45 | 1.15 | 2.40 | 7.56 | 29.33 | — | — |
P/E links to full P/E history page with 30-year chart
RXT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Rackspace Technology, Inc.'s enterprise value stands at 17.2x EBITDA, 24% above its 5-year average of 13.9x. This is roughly in line with the Technology sector median of 17.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.27 | 1.33 | 1.22 | 1.36 | 2.16 | 2.70 | — | — |
| EV / EBITDA | 17.20 | 14.49 | — | — | — | 13.31 | 13.01 | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 37.64 | — | 13.00 | 23.74 | 24.76 | 36545.88 | — | — |
RXT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Rackspace Technology, Inc. earns an operating margin of -3.7%. Operating margins have expanded from -30.4% to -3.7% over the past 3 years, signaling improving operational efficiency.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.9% | 18.9% | 19.5% | 21.9% | 27.4% | 31.1% | 36.4% | 41.5% | 41.1% |
| Operating Margin | -3.7% | -3.7% | -33.2% | -30.4% | -21.7% | -0.1% | 0.9% | 4.2% | 2.9% |
| Net Profit Margin | -8.4% | -8.4% | -31.4% | -28.3% | -25.8% | -7.3% | -9.1% | -4.2% | -19.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | -352.8% | -82.3% | -16.1% | -21.5% | -11.3% | -51.8% |
| ROA | -7.7% | -7.7% | -24.0% | -17.5% | -13.7% | -3.4% | -3.9% | -1.7% | -7.7% |
| ROIC | -3.7% | -3.7% | -26.4% | -18.5% | -11.0% | -0.0% | 0.4% | 1.5% | 1.1% |
| ROCE | -4.7% | -4.7% | -32.6% | -22.8% | -13.5% | -0.0% | 0.4% | 1.8% | 1.3% |
RXT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Rackspace Technology, Inc. carries a Debt/EBITDA ratio of 14.0x, which is highly leveraged (377% above the sector average of 2.9x). Net debt stands at $3.2B ($3.3B total debt minus $106M cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 6.12 | 2.99 | 2.88 | 4.81 | 4.74 |
| Debt / EBITDA | 13.96 | 13.96 | — | — | — | 8.13 | 7.11 | 6.47 | 6.31 |
| Net Debt / Equity | — | — | — | — | 5.76 | 2.78 | 2.81 | 4.71 | 4.46 |
| Net Debt / EBITDA | 13.51 | 13.51 | — | — | — | 7.57 | 6.92 | 6.34 | 5.93 |
| Debt / FCF | — | 35.08 | — | 11.45 | 20.26 | 14.08 | 19430.00 | 44.63 | 29.85 |
| Interest Coverage | -1.44 | -1.44 | -7.99 | -2.68 | -3.31 | -0.21 | -0.22 | 0.63 | -0.78 |
RXT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.68x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.92x to 0.68x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.68 | 0.68 | 0.81 | 0.92 | 1.25 | 1.18 | 1.02 | 0.81 | 1.09 |
| Quick Ratio | 0.68 | 0.68 | 0.81 | 0.92 | 1.25 | 1.18 | 1.02 | 0.81 | 0.99 |
| Cash Ratio | 0.14 | 0.14 | 0.19 | 0.25 | 0.27 | 0.33 | 0.14 | 0.12 | 0.45 |
| Asset Turnover | — | 0.96 | 0.90 | 0.72 | 0.57 | 0.48 | 0.42 | 0.39 | 0.40 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 26.29 |
| Days Sales Outstanding | — | 36.22 | 39.85 | 41.93 | 72.74 | 67.23 | 65.12 | 52.44 | 38.76 |
RXT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Rackspace Technology, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — |
| FCF Yield | 10.4% | 39.1% | — | 64.6% | 28.7% | 9.4% | 0.0% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.9% | 0.2% | 5.0% | 0.0% | 0.1% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.9% | 0.2% | 5.0% | 0.0% | 0.1% | — | — |
| Shares Outstanding | — | $239M | $225M | $215M | $211M | $208M | $180M | $16M | $16M |
Peer Comparison
Compare RXT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RXTYou | $869M | -3.7 | 17.2 | 9.6 | 18.9% | -3.7% | — | -3.7% | 14.0 |
 LUMN | $9B | -4.8 | 9.9 | 23.5 | 46.5% | -1.5% | — | -0.8% | 6.9 |
 CNXC | $2B | -1.3 | 4.8 | 3.1 | 35.0% | 6.2% | -37.7% | 5.6% | 3.7 |
 DXC | $2B | 5.7 | 2.4 | 2.5 | 24.1% | 5.4% | 11.9% | 8.1% | 2.3 |
 SIFY | $1B | -119.1 | 18.1 | — | 37.5% | 5.7% | -4.1% | 3.3% | 5.0 |
 CSCO | $365B | 36.1 | 26.3 | 27.5 | 64.9% | 20.8% | 22.1% | 13.0% | 2.0 |
 IBM | $217B | 20.7 | 17.6 | 18.7 | 59.5% | 15.3% | 35.2% | 9.8% | 4.4 |
 HPE | $39B | -665.9 | 12.8 | 62.9 | 28.8% | 4.8% | 0.2% | 3.5% | 5.1 |
 CTSH | $25B | 11.4 | 6.0 | 9.5 | 33.7% | 16.7% | 15.2% | 18.7% | 0.4 |
 WIT | $21B | 14.9 | 11.1 | 12.7 | 30.7% | 17.0% | 16.8% | 13.4% | 1.1 |
 INFY | $51B | 16.6 | 10.6 | 12.5 | 30.5% | 21.1% | 28.9% | 31.8% | 0.2 |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
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Start ComparisonRXT — Frequently Asked Questions
Quick answers to the most common questions about buying RXT stock.
What is Rackspace Technology, Inc.'s P/E ratio?
Rackspace Technology, Inc.'s current P/E ratio is -3.7x. This places it at the 50th percentile of its historical range.
What is Rackspace Technology, Inc.'s EV/EBITDA?
Rackspace Technology, Inc.'s current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.6x.
Is RXT stock overvalued?
Based on historical data, Rackspace Technology, Inc. is trading at a P/E of -3.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Rackspace Technology, Inc.'s profit margins?
Rackspace Technology, Inc. has 18.9% gross margin and -3.7% operating margin.
How much debt does Rackspace Technology, Inc. have?
Rackspace Technology, Inc.'s Debt/EBITDA ratio is 14.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.