# Rackspace Technology Inc. (RXT) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Software. Price $2.69, market value $684 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Rackspace Technology Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.26**. A PEG of 0.26 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Free-cash-flow yield: 6.0%** (5-yr avg 25.1%). Free cash flow equals 6.0% of the market value, below its five-year average of 25.1%, so the shares are pricier on cash than usual. Above 5% is generally attractive.

## Profitability
- **Gross margin: 17.9%**. Rackspace Technology Inc. keeps 17.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -3.3%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -8.4%**. The company reported a net loss over the last twelve months.
- **Return on equity: 18.5%**. 18.5% on shareholders' equity is solid.
- **Return on invested capital: -4.9%**. Return on all capital, debt included, is -4.9%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -5.7%**. Each dollar of assets produces -5.7% of profit.

## Growth
- **Revenue growth (1 yr): -1.9%** (3-yr -4.9%/yr, 5-yr -0.2%/yr). Revenue fell 1.9% over the last year, against -0.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 75.1%**. Earnings per share rose 75.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -18.3%/yr**. Free cash flow has compounded at -18.3% a year over three years.

## Financial health
- **Current ratio: 0.68** (quick 0.68). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.23**. A Z-score of 0.23 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Rackspace Technology Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: hold** (3 analysts). 3 analysts cover Rackspace Technology Inc.; the consensus is hold, with an average price target of $4.77 (+78% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 47.2%** (YTD 142.5%, 3-mo -50.6%). The shares are up 47.2% over twelve months including dividends.
- **From 52-week high: -68.8%** (583.2% above the low). Trading 69% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 32**. An RSI of 32 is neutral.
- **Beta (1 yr): 3.06** (volatility 286%). Beta of 3.06 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RXT · Page: https://foliofundamentals.com/stocks/rxt

Not investment advice.