BANDWIDTH INC-CLASS A (BAND)
US05988J1034 - Common Stock
BAND gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. BAND scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BAND is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
BAND had positive earnings in the past year.
In the past year BAND had a positive cash flow from operations.
In multiple years BAND reported negative net income over the last 5 years.
Of the past 5 years BAND 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BAND (-2.12%) is worse than 63.64% of its industry peers.
With a Return On Equity value of -6.90%, BAND is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.12% | ||
| ROE | -6.9% | ||
| ROIC | N/A |
ROA(3y)-0.65%
ROA(5y)-1.23%
ROE(3y)-1.65%
ROE(5y)-2.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of BAND (38.04%) is worse than 75.76% of its industry peers.
BAND's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for BAND so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.04% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.32%
GM growth 5Y-3.56%
2. Health
2.1 Basic Checks
BAND does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, BAND has more shares outstanding
Compared to 5 years ago, BAND has more shares outstanding
BAND has a better debt/assets ratio than last year.
2.2 Solvency
BAND has an Altman-Z score of 0.93. This is a bad value and indicates that BAND is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.93, BAND perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Debt to FCF ratio of BAND is 7.10, which is on the high side as it means it would take BAND, 7.10 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.10, BAND is doing good in the industry, outperforming 69.70% of the companies in the same industry.
BAND has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
BAND has a Debt to Equity ratio of 1.04. This is comparable to the rest of the industry: BAND outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 0.93 |
ROIC/WACCN/A
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.16 indicates that BAND should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.16, BAND is doing good in the industry, outperforming 60.61% of the companies in the same industry.
BAND has a Quick Ratio of 1.16. This is a normal value and indicates that BAND is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BAND (1.16) is better than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 117.46% over the past year.
Measured over the past years, BAND shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.10% on average per year.
The Revenue has been growing slightly by 4.87% in the past year.
Measured over the past years, BAND shows a very strong growth in Revenue. The Revenue has been growing by 24.11% on average per year.
EPS 1Y (TTM)117.46%
EPS 3Y14.94%
EPS 5Y30.1%
EPS Q2Q%86.96%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.55%
Revenue growth 5Y24.11%
Sales Q2Q%27.54%
3.2 Future
Based on estimates for the next years, BAND will show a very strong growth in Earnings Per Share. The EPS will grow by 43.39% on average per year.
Based on estimates for the next years, BAND will show a quite strong growth in Revenue. The Revenue will grow by 13.85% on average per year.
EPS Next Y54.07%
EPS Next 2Y36.86%
EPS Next 3Y43.39%
EPS Next 5YN/A
Revenue Next Year21.42%
Revenue Next 2Y12.65%
Revenue Next 3Y13.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.57 indicates a correct valuation of BAND.
BAND's Price/Earnings ratio is a bit cheaper when compared to the industry. BAND is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.20. BAND is valued rather cheaply when compared to this.
BAND is valuated correctly with a Price/Forward Earnings ratio of 12.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAND indicates a somewhat cheap valuation: BAND is cheaper than 78.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.28. BAND is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
BAND's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BAND is more expensive than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAND is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 46.59 |
4.3 Compensation for Growth
BAND's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BAND's earnings are expected to grow with 43.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)0.45
EPS Next 2Y36.86%
EPS Next 3Y43.39%
5. Dividend
5.1 Amount
No dividends for BAND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BANDWIDTH INC-CLASS A
NASDAQ:BAND (11/4/2024, 8:00:00 PM)
After market: 17.67 -0.92 (-4.95%)18.59
-0.11 (-0.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap511.41M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.25
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.12% | ||
| ROE | -6.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)117.46%
EPS 3Y14.94%
EPS 5Y
EPS Q2Q%
EPS Next Y54.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y