LiveRamp Holdings, Inc. (NYSE: RAMP)

Sector: Technology Industry: Software - Infrastructure CIK: 0000733269
P/B 2.04
P/E 48.10
P/S 2.48
Market Cap 1.93 Bn
ROIC (Qtr) 3.69
Div Yield % 0.00
Rev 1y % (Qtr) 7.73
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

LiveRamp Holdings, Inc., known by its stock symbol RAMP, is a global technology company operating in the data-driven marketing industry. The company's main business activities revolve around its LiveRamp Data Collaboration Platform, a solution that empowers businesses to securely and privately share first-party consumer data with trusted partners. The LiveRamp Data Collaboration Platform offers four core capabilities: Live/Identity, Live/Access, Live/Connectivity, and Live/Insights. These capabilities allow organizations to access and leverage...

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Analysis

Pros

  • Tangible assets of 723.57M provide exceptional 14.54x coverage of deferred revenue 49.76M, showing strong service capability backing.
  • Robust free cash flow of 147.78M exceeds capital expenditure of 1.50M by 98.52x, indicating strong organic growth funding capability.
  • Tangible assets of 723.57M provide robust 5.97x coverage of other current liabilities 121.14M, indicating strong asset backing.
  • Operating cash flow of 149.28M provides solid 0.63x coverage of current liabilities 237.03M, showing strong operational health.
  • Operating cash flow of 149.28M fully covers other non-current liabilities 9.83M by 15.19x, showing strong long-term stability.

Cons

  • Operating cash flow of 149.28M barely covers its investment activities of (2.79M), with a coverage ratio of -53.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.79M) provide weak support for R&D spending of 165.22M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 369.45M provide limited coverage of acquisition spending of (2.56M), which is -144.48x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 149.28M shows concerning coverage of stock compensation expenses of 96.85M, with a 1.54 ratio indicating potential earnings quality issues.
  • Operating cash flow of 149.28M is outpaced by equity issuance of (120.78M) (-1.24 ratio), indicating concerning reliance on equity markets for funding operations.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.26 2.56
EV to Cash from Ops. 10.49 38.32
EV to Debt 0.00 -11.37
EV to EBIT 31.60 -12.79
EV to EBITDA 33.47 7.72
EV to Free Cash Flow [EV/FCF] 10.59 24.22
EV to Market Cap 0.81 0.58
EV to Revenue 2.01 -35.00
Price to Book Value [P/B] 2.04 3.74
Price to Earnings [P/E] 48.10 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 66.44 -404.11
Cash and Equivalents Growth (1y) % 8.16 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 1,308.85 31.15
EBITDA Growth (1y) % 163.13 49.02
EBIT Growth (1y) % 99.11 25.85
EBT Growth (1y) % 99.11 17.82
EPS Growth (1y) % 1,140.00 70.69
FCF Growth (1y) % 71.85 295.45
Gross Profit Growth (1y) % 7.12 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.63 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 1.56 1.21
Current Ratio 2.73 2.57
Debt to Equity Ratio 0.00 -0.93
Interest Cover Ratio 0.00 -13.15
Times Interest Earned 0.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 8.30 -544.82
EBIT Margin % 6.36 -197.78
EBT Margin % 6.36 -602.74
Gross Margin % 70.40 52.06
Net Profit Margin % 5.20 -605.52