Rackspace Hosting Inc  RAX

Summary (from latest annual report – 2015)

• Total equity  : 977 million USD
• Market Cap is 3.1 billion USD ( last price of the stock is 23.84 USD)
• Rackspace Hosting Inc, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises
• Equity of total company decreased from 1.07 billion USD in 2014 to 977 million in 2015
• Company has 485 million USD in cash on account (from latest annual report  2015 year)
• Total equity – cash on account = 977 million usd – 485 million usd = 492 million usd
• In 2015 company has 492 million USD long-term debt, short – term debt was zero                                                                                                                                                            (In 2014 company had 25 million USD short-term debt , long-term debt was zero)
• RAX balance sheet has become a little weaker in 2015 (In latest annual report - total equity decreased to 977 million  USD from 1.07 billion USD in 2014, total debt was 492 million USD in 2015)
• Company's revenue increased in 2015 to 2 billion USD from 1.79 billion in 2014
• Net income in 2015 was 126 million USD, Net income in 2014 was 111 million USD
• Rackspace repurchased $367 million, or 12.2 million shares, of their common stock on the open market during 2015 - according to this they paid 30.08 usd average price for company stock and their management believe that stock of RAX worth at least 30.08 usd (management beliefs are usually incorrect)

Rackspace Hosting Inc Subsidiaries

Rackspace Hosting Inc, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. Rackspace has two primary lines of business; Cloud Servers and Dedicated Servers. Rackspace helps design, build, and operate workloads across both environments depending on the individual needs of the customer. In addition to its core IT infrastructure services, Rackspace owns a cluster-driven cloud hosting platform (Mosso) and an email service (MailTrust).

Rackspace Hosting Inc standalone subsidiaries and acquisitions :

• In September 2007, Rackspace acquired Webmail.us., Inc. for less than 20 million USD, an email hosting business, which Rackspace rebranded as Mailtrust
• In 2008 Rackspace has acquired JungleDisk, an online backup service, and Virtual Machine provider Slicehost in a deal designed to help bolster its offerings against top competitor Amazon Web Services. The announced acquisition price is 11.5 million USD in cash and stock
• On February 16, 2012, Rackspace acquired SharePoint911, a Microsoft SharePoint consulting company for less than 10 million USD
• Other acquisitions include: Cloudkick, Anso Labs, Mailgun, ObjectRocket, Exceptional Cloud Services, and ZeroVM worth - 45 million USD

Total = 86.5 million usd

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 492 million usd, company has 485 million USD in cash on account, ROE is around 12 %).