Latest Ratios: P/E Ratio -6.9x · EV/EBITDA 16.4x · ROE N/A. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.6B | $232M | $497M | $431M | $623M | $2.8B | $3.4B | — | — |
| Enterprise Value | $4.8B | $3.4B | $3.6B | $3.6B | $4.2B | $6.5B | $7.3B | — | — |
| P/E Ratio → | -6.92 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.61 | 0.09 | 0.18 | 0.15 | 0.20 | 0.93 | 1.26 | — | — |
| P/B Ratio | — | — | — | — | 0.99 | 2.11 | 2.47 | — | — |
| P/FCF | 18.09 | 2.56 | — | 1.55 | 3.48 | 10.68 | 17115.88 | — | — |
| P/OCF | 10.82 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 16.37 | 11.59 | — | — | — | 13.31 | 13.01 | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 37.64 | — | 13.00 | 23.74 | 24.76 | 36545.88 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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 | 13.4% | 13.4% | 19.5% | 21.9% | 27.4% | 31.1% | 36.4% | 41.5% | 41.1% |
| Operating Margin | -2.5% | -2.5% | -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% |
| 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 | -2.5% | -2.5% | -26.4% | -18.5% | -11.0% | -0.0% | 0.4% | 1.5% | 1.1% |
| ROCE | -3.2% | -3.2% | -32.6% | -22.8% | -13.5% | -0.0% | 0.4% | 1.8% | 1.3% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 11.16 | 11.16 | — | — | — | 8.13 | 7.11 | 6.47 | 6.31 |
| Net Debt / Equity | — | — | — | — | 5.76 | 2.78 | 2.81 | 4.71 | 4.46 |
| Net Debt / EBITDA | 10.80 | 10.80 | — | — | — | 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 | -0.54 | -0.54 | -7.99 | -2.68 | -3.31 | -0.21 | -0.22 | 0.63 | -0.78 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — |
| FCF Yield | 5.5% | 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 |
Insolvency and liquidity constraints
According to current market data, Rackspace Technology trades at a P/S ratio of 0.55, which, when viewed alongside a negative P/E of -6.29, suggests that investors are pricing the firm as a distressed asset rather than a growth-oriented cloud services provider.
The low P/S multiple indicates that the market assigns minimal value to the company's revenue base, likely due to the high proportion of low-margin pass-through cloud reselling. This valuation appears to discount the potential for a successful pivot to higher-margin services, reflecting deep skepticism regarding the company's ability to stabilize its top-line growth.
Based on reported financial statements, Rackspace Technology has struggled to generate positive returns, with ROIC remaining in negative territory at -0.3% in 2026Q1, highlighting a multi-quarter trend of capital destruction that underscores the difficulty of scaling the current service model.
The inability to achieve a positive ROIC suggests that the company's investments in cloud infrastructure and technical labor are not yielding returns above the cost of capital. This trend warrants investigation into whether the current asset-light strategy is sufficient to reverse the long-term decay in capital efficiency.
As reported in recent filings, the company's asset turnover ratio has stagnated at 0.24, which, when combined with a cash conversion cycle that remains under pressure, suggests that Rackspace is struggling to optimize its working capital in a highly competitive cloud services environment.
The low asset turnover ratio implies that the company is not effectively utilizing its asset base to drive revenue, likely due to the drag of legacy infrastructure. Investors should monitor whether the company can improve its DSO and DPO management to free up liquidity, as current efficiency levels appear insufficient to support a turnaround.
According to quarterly data, the current ratio has declined to 0.68 as of 2026Q1, indicating that Rackspace Technology faces significant liquidity challenges that may limit its operational flexibility and ability to meet short-term obligations without further external financing or aggressive cost-cutting measures.
A current ratio below 1.0 suggests that the company's short-term liabilities exceed its liquid assets, creating a precarious financial position. This vulnerability is exacerbated by the company's high debt load, which may restrict its ability to navigate periods of market stress or unexpected operational volatility.
The most commonly misapplied metric for Rackspace Technology is the Price-to-Sales (P/S) ratio, which obscures the underlying quality of revenue by failing to distinguish between low-margin pass-through cloud reselling and higher-value managed services that drive long-term profitability.
Using P/S as a primary valuation tool for this business model is misleading because it treats every dollar of revenue as equal, ignoring the structural margin differences between segments. Analysts should instead focus on gross profit per employee or service-based revenue growth to better assess the company's true earning power and competitive positioning.
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Quick answers to the most common questions about buying RXT stock.
Rackspace Technology, Inc.'s current P/E ratio is -6.9x. This places it at the 50th percentile of its historical range.
Rackspace Technology, Inc.'s current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
Based on historical data, Rackspace Technology, Inc. is trading at a P/E of -6.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Rackspace Technology, Inc. has 13.4% gross margin and -2.5% operating margin.
Rackspace Technology, Inc.'s Debt/EBITDA ratio is 11.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.