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Financial distress

Rackspace Technology

NSQ:RXT · US7501021056
IT ServicesMedium

360

8
EV / EBIT18
Price / Owner Earnings38
Owner Earnings Yield32
Dividend Yield1
Price/Sales93
EV / Gross Profit23
Price/Book93
Return on Capital11
Cash Return on Capital31
EBIT Margin18
Gross Profitability25
Accruals86
Owner Earnings Margin41
Sales growth8
Profit growth4
Reinvestment10
Price momentum100
Debt load3
Refinancing11
Debt Payback3
Liquidity32
Analyst ratings1
Opinion Changes50
Price Target Upside4
Market mood3
Value Creation8/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Rackspace Technology clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryIT Services
SizeMedium
TypePublic Company
ExchangeNASDAQGS
Founded2016
Employees5,426
Websiterackspace.com
ISINUS7501021056
Last UpdateApr 2, 2026
Indices
NASDAQ (USA)
Themes
Machine LearningCloud Data ServicesCloud InfrastructureCloud SecurityArtificial IntelligenceDevSecOpsCloud StorageCloud ManagementIaaS (Infrastructure as a Service)

Description

Rackspace Technology, Inc. (Rackspace Technology) operates as a leading end-to-end, hybrid cloud and AI solutions company. The company designs, integrates, and operates the infrastructure, data foundations, and software platforms required to deliver…

Analysis

Middle-of-the-road

Rackspace Technology, Inc. is a middle-of-the-road business: neither the economics nor the price stand out from the peer group.

The price is fair. You pay 16.7× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone.

The trajectory is moderate and the balance sheet is fragile. The company scores 8/20 on our value-creation score: creating some value.

What to watch: Some accounting patterns deserve a closer look. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
9
2023202420252026

All-time high

19

Jan 2023

All-time low

1

Mar 2026

Average rank

11

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
93
100
95
91
Price/Earnings
95
91
91
97
Price/Book
93
86
91
85
Dividend Yield
1
1
1
1
Value (overall)
94
84
78
87

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
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