Added to YB: 2026-02-19
Pitch date: 2026-02-18
RNG [bullish]
RingCentral, Inc.
+49.79%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
RingCentral, Inc., an agentic voice AI–powered cloud business communication services provider, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging.
Market Cap
$3.4B
Pitch Price
$29.05
Price Target
85.50 (+101%)
Dividend
0.74%
EV/EBITDA
11.05
P/E
43.56
EV/Sales
1.86
Sector
Software
Category
value
An Overlooked AI Software Leader Generating Substantial Cash Flow
RNG: Overlooked AI software leader w/ 71% gross margins, $2.5B ARR (96% retention), trading 1.4x NTM EV/sales (52% discount vs peers at 2.9x) & 7.5x EV/FCF vs peers 14-16x. AI products hit $100M ARR, targeting $1B by 2028. FCF $525M+ FY25, 80% conversion. $384M buyback auth remaining. $1.4B fed NOL + $1.2B state NOL shields. Recent credit upgrades to Ba2/BB+. Risks: 4-5% rev growth, MSFT competition, NOL expiry. PT $42.9 (2026) to $85.5 (2030), 183% upside, 23% CAGR.
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