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Company Analysis

Rackspace Technology, Inc. RXT

A comprehensive view of key metrics, scores, and financial health for Rackspace Technology, Inc.

Overview of Rackspace Technology, Inc.

RXT NMS
Technology Software - Infrastructure Framework: Software & SaaS Small Cap
Rackspace Technology, Inc. (RXT), is a Small Cap company, in the Software - Infrastructure industry, last closed at $2.87, about 1351.6% undervalued vs fair value, +75.0% 1Y return, ranked 456/780 in sector.
Metrics Rev Growth -1.9% ROE 20.3% Gross Margin 18.9%
USD 2.87
5.90%
(Delayed)
• Vol 90d: 122.1%
52-Week Range
Market Cap
$731.49M
Enterprise Value
$3.41B
Overall Score
View breakdown
Overall
Growth
Weak
Profitability
Fair
Health
Weak
Efficiency
Weak
Valuation
Fair
Growth
Weak
Profitability
Fair
Health
Weak
Efficiency
Weak
Valuation
Fair
Completeness: 88%
Confidence: 91%
Updated: Oct 24
Top Beats

Quick Facts

Website https://www.rackspace.com
HQ San Antonio, TX
Fiscal year Dec 31

Next Events

Earnings Nov 9 Call: Nov 10

Fair Value Snapshot

Bear Base Bull
$38
$42
$46
Current: $2.87 +1352% vs base

Engine Room Money Flow™

Small Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$2.7B
-1.9%%
Gross Profit
$506.4M
-5.1%%
Operating Income (GAAP)
-$100.7M
88.9%%
Operating Cash Flow
$151.4M
279.4%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
18.9%
Poor

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
6
Active Leaks
1/6
Improving
1
High Impact
2
Critical
Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Rackspace Technology, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
38
/100
Developing
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Consistent Subscription Growth Revenue consistency is strong (score 0.75), pointing to a sticky customer base.

Key risks

  • Margin Compression Risk Margin quality is below peer norms (score 0.28), suggesting pricing pressure.
  • Returns Trail Peers Return profile is weak (score 0.31), pointing to limited capital efficiency.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
36
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 97% Coverage
Trade-Off Triangle Visualization A ternary plot showing RXT's balance between Growth (38.8%), Profitability (34.7%), and Safety (26.5%). Growth 39% Safety 27% Profitability 35%

Click axes to expand details. Marker shows current allocation.

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Growth

35th percentile vs peers
35
Key Signals
Def Rev Growth 12.3% 59p EPS Growth YoY 75.2% 70p Rev Growth YoY -1.9% 23p Revenue CAGR 3Y -4.9% 19p TSR -32.0% 29p
Strengths

No notable strengths identified for this axis.

Risks

No significant risks identified for this axis.

Profitability

31th percentile vs peers
31
Key Signals
Strengths
Risks
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Safety

24th percentile vs peers
24
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Rackspace Technology, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
X.X%
X%XX%
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-XX%XX%
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Bear
-
- - -
- upside
-
Base
$41.66
- - -
+1351.6% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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