Stock

RingCentral

RNG
66
Software - Application · Technology
Also trades as: 0V50.L GBP 0.85 (+4.09%)
Price
$83.39
+3.97 (+5.00%)
Market Cap
$6.15B
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 23, 2026 · filings through Sep 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Exceptional
17/20
Cash Flow
Exceptional
9/10
Stability
Mixed
3/10
Valuation
Good
5/10
Ownership
Good
10/15
Dividends
Weak
1/5

66 of 100 counted points = Winston Score 66.

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)

§Winston Score History

The full picture

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.

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Growth Profile

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

Revenue Growth

+5.9% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

>+1,000% YoY

Quarterly reporting periods ended:

30 Sept 2025: $0.19

30 Sept 2026: $6.73

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

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

16.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$110M 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 6% 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

Profit per sale
Gross Margin
73.1%
Premium pricing power — 73.1% gross margin
Profit after running costs
Operating Margin
8.0%
Modest — 8.0% operating margin
Return on the money invested
ROCE
16.6%
Strong — 16.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+5.5%
Slow sales growth (+5.5% YoY)
Profit growth
EPS YoY
>+1,000%
Earnings growing fast (>+1,000% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
107%
Turns 107% of profit into real cash
Spare cash per sale
FCF Margin
23.5%
Converts sales into free cash efficiently (23.5%)

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

What it owes vs what it owns
Debt / Equity
5.52
Heavy debt load (5.52)
Covers its interest
Interest Cover
5.82x
Adequate interest coverage (5.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
10.7x
Attractive valuation — P/E 10.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-2.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
0.64%
Small dividend — 0.64% yield

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

Dividend record
Dividend Growth
N/A
—
Data not available
Payout Ratio
4%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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