Rackspace Technology, Inc. (RXT) Stock Grade

About Rackspace Technology, Inc.'s fundamentals

Rackspace Technology reported a net loss in its latest annual period with a negative net margin of -8.4%, though revenue declined modestly by 1.9% year-over-year. Despite accounting losses, the company generated positive free cash flow, indicating its operations produced cash even as profitability remained negative. The company's return on equity stands at 18.5%, though this metric may be distorted given the negative earnings base. Rackspace does not currently pay a dividend and has a market capitalization of $962.3 million.