RingCentral

RNG

Software - Application · Technology

Price

$41.32

-0.45 (-1.08%)

Market Cap

$3.63B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−4.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 91.7M (2021) → 88.0M (2025)

RingCentral makes software that lets businesses handle phone calls, video meetings, and text messages all in one app instead of using separate tools. Its main product is called RingCentral MVP (Message, Video, Phone), and it sells to companies of all sizes — from small businesses to large enterprises. It competes in the cloud communications industry, where it is one of the largest pure-play providers of cloud-based business phone systems in the United States.

RingCentral makes money by charging businesses a monthly or annual subscription fee per user, which creates steady, recurring revenue. It operates mainly in North America but also has customers in Europe and other regions, and it partners with major carriers like AT&T and Avaya to reach more customers. With a 71% gross margin and a subscription model, the business has decent financial strength, but its main risk is intense competition from larger tech companies like Microsoft Teams and Zoom, which bundle similar communication tools into products businesses already use.

Winston Score History

Politician Trades

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0 Congressional buys and 2 sells on RNG in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+437.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$317M/ year

→ Flat (-4% vs prior year)

12.6% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

17.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$133M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

RingCentral is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

71.4%

Premium pricing power — 71.4% gross margin

Operating Margin

7.5%

Modest — 7.5% operating margin

ROCE

5.5%

Weak — 5.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+4.8%

Slow sales growth (4.8% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

1438%

Turns 1438% of profit into real cash

FCF Margin

22.2%

Converts sales into free cash efficiently (22.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

2.09x

Tight — interest eats into profit (2.1x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

82.6x

Expensive — P/E 82.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+76.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (82.6 → 6.5)

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Dividends

Dividend Yield

0.37%

Small dividend — 0.37% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

N/A

no trend

Data not available

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