Markets

Red Hat, Inc. (RHT): Interesting Series Of Developments Taking Place

Red Hat, Inc. (NYSE:RHT) is an interesting stock at present. Now trading with a market value of 28.96B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.

Red Hat, Inc. (NYSE:RHT) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RHT, the company currently has 1.72 billion of cash on the books, which is offset by 23.81 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 5.47 billion in total assets, balanced by 4 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Red Hat, Inc. (RHT) saw 345.36 million in free cash flow last quarter, representing a quarterly net change in cash of 392.96 million. Perhaps most importantly where cash movements are concerned, the company saw about 362.06 million in net operating cash flow.

Red Hat, Inc. (NYSE:RHT) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 772.33 million in total revenues. That represents a quarterly year/year change in revenues of 0.23 in sequential terms, the RHT saw sales decline by 0.03.



But what about the bottom line? After all, that’s what really matters in the end. Red Hat, Inc. (RHT) is intriguing when broken down to its core data. The cost of selling goods last quarter was 116.49 million, yielding a gross basic income of 655.84 million. For shareholders, given the total diluted outstanding shares of 177.03 million, this means overall earnings per share of -0.07. Note, this compares with a consensus analyst forecast of 0.66 in earnings per share for its next fiscal quarterly report.

Is Red Hat, Inc. (NYSE:RHT) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 2.96 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 43.44. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Red Hat, Inc..

Previous ArticleNext Article

Related Post

For Hecla Mining Company (HL), It May Be As Good A... Hecla Mining Company (NYSE:HL) is one of the more popular stocks investors are adding into their watchlist. Now trading with a market value of 1.62B, ...
Nektar Therapeutics (NKTR) Makes An Interesting Ca... Nektar Therapeutics (NASDAQ:NKTR) seems to be forming a pattern of major movements, providing only some crumbs of outlook for market participants tryi...
Energy Transfer Partners, L.P. (ETP): Checking the... Energy Transfer Partners, L.P. (NYSE:ETP) is an interesting stock at present. Now trading with a market value of 19.42B, the company has a mix of cata...
For ConocoPhillips (COP), It May Be As Good A Mome... ConocoPhillips (NYSE:COP) is one of the active stocks and its unusual movement is raising eyebrows among traders. Now trading with a market value of 6...
Ford Motor Company (F): More In-Depth Monitoring i... Ford Motor Company (NYSE:F) is on our radar right now but there could still be some opportunities on the horizon. Now trading with a market value of 4...