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ZYBERNO

Stock Report

Updated Aug 31, 2026

RideNow Group, Inc. (RDNW)

Technology • NASDAQ

$5.67

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

6.0/100

POOR BUSINESS

RideNow Group, Inc. (RDNW) scores 6/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full RDNW quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-18.9%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full RDNW valuation analysis · → View full RDNW Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (2.3%)

Return on Capital (Capital Efficiency):AVERAGE (10.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

RideNow Group, Inc. (RDNW) stock report — Zyberno Score 6/100 (POOR BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, RideNow Group, Inc. (RDNW) shows a Brina Gap of -18.9%, which weakens the case: based on the company's ROIC (10.4%) and reinvestment rate (-114.0%), the business can fundamentally grow at -11.9% — but the current enterprise value implies the market expects 7.1%.

Over the trailing twelve months, RDNW generated -$10.10M in Owner Earnings. Capital was deployed as follows: $5.70M invested in capital expenditures. Reinvestment rate: -114.0%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:5.67

Market Cap:$219.07M

Valuation Multiples (2)

P/S Ratio:0.20x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$467.07M

Ev Ebitda Ratio:13.82x

Price Action & Momentum (3)

12-1 Momentum:

+208.1% (97th pctile)

📈 Click to view full RDNW Momentum analysis →

Momentum Percentile:97 / 100

% of 52-Week High:66.3%

B. Profitability Assessment

Return Metrics (6)

ROA:-1.2%

Roic:

10.4%

📊 Click to view full RDNW ROIC analysis →

Reinvestment Rate:-114.0%

Fundamental Growth Rate (g):-11.9%

Market-Implied Growth Rate:7.1%

Brina Gap:

-18.9%

☷ Click to view full RDNW Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:2.3%

Net Margin Ttm:-0.8%

Ebitda Margin:3.1%

TTM Performance (3)

Gross Margin Ttm:27.7%

Operating Margin Ttm:2.3%

Net Margin Ttm:-0.8%

Yield Metrics (2)

Earnings Yield:-$3.57

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.03

📊 Click to view full RDNW Earnings Surprise analysis →

EPS Surprise vs Expected:-35.5%

Latest Earnings Filed:2026-08-11

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-10.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-26.0%

Operating Cash Flow Growth Rate (Linear):-44.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):28.6%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.14x

Quick Ratio:0.27x

Cash Ratio:0.13x

Leverage Analysis (1)

Debt To Ebitda:8.72x

Coverage Ratios (2)

Interest Coverage Ratio:-0.01x

Times Interest Earned:-0.01

Capital Structure (4)

Working Capital:49,700,000.00

Cash And Cash Equivalents:46,700,000.00

Long Term Debt:$212.40M

Net Debt:$248.00M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.10B

Linear Growth: -10.0%

📊 Click to view full RDNW Revenue analysis & methodology →

Cost Of Revenue Ttm:$791.80M

Profitability Breakdown (2)

Gross profit TTM: $303.30M

Linear Growth: -8.8%

📊 Click to view full RDNW Gross Profit analysis & methodology →

Operating income TTM: $25.30M

Linear Growth: 28.6%

📊 Click to view full RDNW Operating Income analysis & methodology →

Bottom Line Performance (3)

-$8.30M

Income Before Tax:-$8.00M

Ebitda Ttm:33,800,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:0.00

Sga Expense:255,600,000.00

Income Tax Expense:$300.00K

Interest Expense:16,600,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:86.1%

Ebitda Margin:3.1%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$736.30M

Current Assets:$403.80M

Ppe Net:0.00

Goodwill:0.00

Intangible Assets:$127.00M

Liability Structure (4)

Total Liabilities:745,200,000.00

Current Liabilities:354,100,000.00

Long Term Debt:$212.40M

Short Term Debt:$82.30M

Equity & Capital (3)

Equity:-$8.90M

Retained Earnings:-$710.10M

Common Stock:100,000,000.00

Working Capital Items (3)

Accounts Receivable:27,900,000.00

Inventory:308,300,000.00

Accounts Payable:82,300,000.00

Special Items (2)

Contract Liabilities:3,800,000.00

Stock Based Compensation:800,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$4.80M

Linear Growth: -44.0%

Free cash flow TTM: -$10.50M

Linear Growth: -26.0%

📊 Click to view full RDNW Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$700.00K

Capital Expenditures Ttm:5,700,000.00

Financing Activities (3)

Financing Cash Flow:$31.80M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:191,241,000.00

Long Term Debt Issuance:$10.00M

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:8,500,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.21

-$0.22

Earnings Per Share Ttm:-$0.21

Revenue & Cash Per Share (2)

Sales Per Share Ttm:28.34

Operating Cash Flow Per Share:$0.41

Book Value & Capital (2)

Book Value Per Share:-$0.23

Cash Per Share:1.21

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.55x

Working Capital Turnover Ttm:22.03x

Receivables Management (2)

Receivables Turnover Ttm:39.25x

Days Sales Outstanding Ttm:9.30

Inventory Management (2)

Inventory Turnover Ttm:2.57x

Days Inventory Outstanding Ttm:142.12

Payables & Cash Cycle (2)

Days Payable Outstanding:37.94

Cash Conversion Cycle:113.48

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:35.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$10.10M

Damodaran Growth Analysis (4)

Reinvestment Rate:-114.0%

Fundamental Growth Rate (g):-11.9%

Market-Implied Growth Rate:7.1%

Brina Gap:

-18.9%

☷ Click to view full RDNW Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):-10.0%

Operating Income Growth Rate (Linear):28.6%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-26.0%

Operating Cash Flow Growth Rate (Linear):-44.0%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-8.8%

Book Value Growth Rate (Linear):-50.0%

C. Company Profile & Context

Corporate Information (6)

Symbol:RDNW

Company Name:RideNow Group, Inc.

Sector:Technology

Industry:Software Development

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:38.64M

Shares Outstanding Basic:38.64M

Shares Outstanding Diluted:38.96M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 02:45:43 UTC

Data Timestamp:2026-08-18T10:33:25.202030