The tenets below and the 0-100 Tenet Score on this report are two separate computations: each tenet runs its own criteria and its own pass rule, while the score is a percentile composite reported as one of four verdict words (Strong, Solid, Mixed or Weak).
2 / 17 qualify todayas of Oct 26, 2026 · computed nightly from our fundamentals DB; point-in-time auditable.
QUALIFIES
2
meet every gate today
BORDERLINE
6
within one input of the gate
FAILS
6
miss at least one gate
UNKNOWN
3
insufficient data to judge
✓passes·✕fails·~borderline·—unknown
Growth receipts arrive in a coming release
Value — six classic philosophies
Buffett Qualitydurable moat
✕ Fails›
✕FailsROE ≥ 15%(TTM through Jun 30, 2026)14.0% · ≥ 15.0%
✓PassesGross margin ≥ 40%(fiscal 2025: trailing figures for Technology are still under review)70.3% · ≥ 40.0%
✕FailsNet margin ≥ 15%(TTM through Jun 30, 2026)2.4% · ≥ 15.0%
✕FailsDebt/equity ≤ 0.5(quarter ending Jun 30, 2026)4.55 · ≤ 0.50
Income & Dividend Safetycoverage over headline yield
— Insufficient inputs (1 of 5 known)›
✕FailsPays a dividend$0.00 · > 0
—Unknown — no dataYield in a healthy band (not a yield trap)0.0% · 1.0%–8.0%
—Unknown — no dataCovered by free cash flow31.81 · ≥ 1.20
—Unknown — no dataEarnings payout not stretched— · ≤ 75.0%
—Unknown — no dataBalance sheet can sustain the payout6.8× · ≤ 4.0×
Verdict Unknown for this set.
Verdict Unknown for this set. 1 of 5 checks below carry data. The pass rule for Income & Dividend Safety is not published separately on the methodology page.
Dividend Growthraises you can count on
— Insufficient inputs (1 of 6 known)›
✕FailsPays a dividend$0.00 · > 0
—Unknown — no dataAnnual dividend raised 10+ years running (Aristocrat ≥25, King ≥50)— · ≥ 10.00
—Unknown — no dataNo dividend cut in the last 5 years—
✓PassesOff its 52-week high by 8–35% (a dip, not a collapse)22.9% · 8.0%–35.0%
✕FailsDip within its own normal pullback band0.27
✓PassesNot past where its dips have historically recovered from−0.26
✕FailsA dip in an uptrend (above a rising 200-day)9.37
✓PassesHigher-low structure still intactstructure intact · higher low
✓PassesClear of the earnings blackout (more than 5 days out)14.00 · > 5.00
Decided by the pass rule for Drawdown Context.
The pass rule for Drawdown Context is what decides that verdict, and it is not published separately on the methodology page.
Reversal Evidencedaily close onlysigns the pullback is turning
~ Borderline›
✕FailsA bullish MACD cross within 10 sessions11.00 · ≤ 10.00
✓PassesReclaimed a rising 50-day EMA12.31
✓PassesPrinted a higher lowyes
✕FailsA volume thrust on the turn (≥ 1.2× normal)1.16 · ≥ 1.20
✕FailsReversal signals fired: 3 of 4 (MACD·MA·HL·Vol)2.00 · ≥ 3.00
Decided by the pass rule for Reversal Evidence.
The pass rule for Reversal Evidence is what decides that verdict, and it is not published separately on the methodology page.
Not-a-Value-Trap Gatecheap for a good reason, not a broken one
✓ Qualifies›
✓PassesIn the cheap half of its own 5-year valuation range(through fiscal 2025)0.1×
—Not scored: see the reason belowEarnings estimates not being cutThe 90-day estimate-revision window is still filling (1 days on record so far). The reading beside this line is real, but a window this short can reverse, so it is shown rather than scored.0.00
✓PassesReturns on capital not deteriorating0.01
Decided by the pass rule for Not-a-Value-Trap Gate.
The pass rule for Not-a-Value-Trap Gate is what decides that verdict, and it is not published separately on the methodology page. 1 of 3 carry no data.
Quality Floorpasses the quality/value gate on this dip
✕ Fails›
✓PassesOperating profit is positive(fiscal 2025: trailing figures for Technology are still under review)$11.6M · > 0
✕FailsReturn on invested capital ≥ 10%(TTM through Jun 30, 2026)0.9% · ≥ 10.0%
✕FailsA solvent balance sheet (Altman Z ≥ 1.8, net debt/EBITDA ≤ 4)(TTM through Jun 30, 2026)−0.0×
✕FailsQuality score ≥ 5049.80 · ≥ 50.00
✓PassesRevenue growing over 5 years(fiscal 2020 to 2025)15.9% per year · > 0
Decided by the pass rule for Quality Floor.
The pass rule for Quality Floor is what decides that verdict, and it is not published separately on the methodology page.
Qualified Dipa pullback with receipts, not a falling knife
~ Borderline›
A research signal from published criteria, not a recommendation.
✕FailsDrawdown context22.9% off its 52-week high
✕FailsReversal evidence2 of 4 signals fired
✓PassesTrap gate2 of 3 held · 1 no data
✕FailsQuality floor2 of 5 held
Invalidation level (structure break): below this the dip's structure has broken$9.39
✓Passes50-day average above the 200-day (uptrend stack)12.40
✓Passes50-day average sloping up0.07 · > 0
Decided by the pass rule for Trend Alignment.
The pass rule for Trend Alignment is what decides that verdict, and it is not published separately on the methodology page.
Relative Strengthoutperforming, ranked vs the universe
~ Borderline›
✓Passes3-month return in the top half of the universe0.98 · ≥ 0.50
✕Fails12-minus-1 momentum in the top half of the universe0.13 · ≥ 0.50
✓PassesRelative strength vs the S&P 500 improving0.00 · > 0
—Not scored: see the reason belowEarnings estimates being revised upThe 90-day estimate-revision window is still filling (1 days on record so far). The reading beside this line is real, but a window this short can reverse, so it is shown rather than scored.0.00
Decided by the pass rule for Relative Strength.
The pass rule for Relative Strength is what decides that verdict, and it is not published separately on the methodology page. 1 of 4 carry no data.
Momentum Triggera trigger you can see
✕ Fails›
✓PassesMACD above its signal line0.55
✕FailsBack above the 50-day on a fresh cross (≤10 sessions)11.00
✓PassesHigher high and higher low (stair-stepping up)higher high · higher low
✕FailsA volume thrust on the move (≥ 1.2× normal)1.16 · ≥ 1.20
Decided by the pass rule for Momentum Trigger.
The pass rule for Momentum Trigger is what decides that verdict, and it is not published separately on the methodology page.
Volatility Regimecontext, not a signal
Context, not scored›
Average daily swing: high0.06
Volatility band width: mid-range0.34
Distance from its 52-week high: mid-range0.23
✓
Every verdict is auditableEach criterion shows the live number and the pass rule side by side — a receipt, not a rating. Several of these screens publish their rule in full under The screens; each row links to its own section where there is one.
!
Unknown ≠ failAn “— Unknown” verdict means the inputs were insufficient: context, not a signal, and never counted as a fail.
Common questions
How many investing rule sets does Rapid7 pass?
Rapid7 qualifies on 2 of 17 rule sets as of 2026-10-26, with 6 borderline and 6 failing.
Does Rapid7 meet the Graham Defensive criteria?
Rapid7 fails the Graham Defensive rule set as of 2026-10-26.
Does Rapid7 meet the Buffett Quality criteria?
Rapid7 fails the Buffett Quality rule set as of 2026-10-26.
Computed from our fundamentals DB; historical-CAGR PEG basis for Lynch. Research, not investment advice. Tenet's rulesets are independently developed from publicly available sources, and Tenet is not affiliated with, sponsored by, endorsed by or otherwise associated with any referenced investor or trademark owner. Full notice. MAGIC FORMULA is a trademark of MagicFormulaInvesting.com LLC.