Rimini Street, Inc. (NASDAQ: RMNI)

Sector: Technology Industry: Software - Application CIK: 0001635282
Market Cap 349.64 Mn
P/B -12.82
P/E 8.12
P/S 0.82
ROIC (Qtr) 79.99
Div Yield % 0.00
Rev 1y % (Qtr) -1.19
Total Debt (Qtr) 91.91 Mn
Debt/Equity (Qtr) -3.37

About

Rimini Street, Inc., symbolized by RMNI, operates in the enterprise software support industry. The company was established in 2005 and has since become a leading independent software support provider for Oracle and SAP products. Rimini Street aims to revolutionize the enterprise software support market by introducing innovative solutions that address unmet needs in the industry. Rimini Street's primary business activities revolve around providing comprehensive support for enterprise software, specifically Oracle and SAP applications, databases,...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 109.15M provide 13.36x coverage of short-term debt 8.17M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 352.86M provides 3.84x coverage of total debt 91.91M, indicating robust asset backing and low credit risk.
  • Retained earnings of (202.11M) represent substantial 7.41x of equity (27.28M), indicating strong internal capital generation.
  • Cash position of 109.15M fully covers payables of 4.71M by 23.15x, showing strong vendor relationship management.
  • Tangible assets of 352.86M provide robust 4.28x coverage of receivables 82.54M, showing strong asset quality.

Bear case

  • Operating cash flow of 2.98M barely covers its investment activities of (4.54M), with a coverage ratio of -0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.98M provides insufficient coverage of deferred revenue obligations of 226M, which is 0.01x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 2.98M shows concerning coverage of stock compensation expenses of 10.77M, with a 0.28 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.57M) provides weak coverage of capital expenditures of 4.54M, with a -0.34 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 2.98M provides minimal 0.14x coverage of tax expenses of 21.80M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.99 2.65
EV to Cash from Ops. EV/CFO 117.73 13.37
EV to Debt EV to Debt 3.82 57.69
EV to EBIT EV/EBIT 4.91 19.12
EV to EBITDA EV/EBITDA 4.47 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -223.96 14.69
EV to Market Cap EV to Market Cap 1.00 -92.28
EV to Revenue EV/Rev 0.82 4.60
Price to Book Value [P/B] P/B -12.82 4.26
Price to Earnings [P/E] P/E 8.12 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 10.74 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 27.35 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.98 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 266.49 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 385.61 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 320.25 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 269.53 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 229.73 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 81.73 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.69 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.21 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.40 3.75
Current Ratio Curr Ratio (Qtr) 0.85 8.16
Debt to Equity Ratio Debt/Equity (Qtr) -3.37 0.17
Interest Cover Ratio Int Coverage (Qtr) 10.74 -52.32
Times Interest Earned Times Interest Earned (Qtr) 10.74 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.80 -100.06
EBIT Margin % EBIT Margin % (Qtr) 16.78 -164.24
EBT Margin % EBT Margin % (Qtr) 15.22 -116.94
Gross Margin % Gross Margin % (Qtr) 61.30 58.20
Net Profit Margin % Net Margin % (Qtr) 10.10 -121.65