BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
NASDAQ:BAND - Nasdaq - US05988J1034 - Common Stock - Currency: USD
Taking everything into account, BAND scores 3 out of 10 in our fundamental rating. BAND was compared to 32 industry peers in the Diversified Telecommunication Services industry. The financial health of BAND is average, but there are quite some concerns on its profitability. BAND has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BAND was profitable.
In the past year BAND had a positive cash flow from operations.
In the past 5 years BAND reported 4 times negative net income.
Of the past 5 years BAND 4 years had a positive operating cash flow.
1.2 Ratios
BAND's Return On Assets of -1.52% is on the low side compared to the rest of the industry. BAND is outperformed by 61.29% of its industry peers.
With a Return On Equity value of -4.66%, BAND perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -4.66% | ||
| 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 (37.72%) is worse than 74.19% 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 | 37.72% |
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.
There is no outstanding debt for BAND. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BAND has an Altman-Z score of 0.96. This is a bad value and indicates that BAND is not financially healthy and even has some risk of bankruptcy.
BAND has a Altman-Z score of 0.96. This is in the better half of the industry: BAND outperforms 64.52% of its industry peers.
BAND has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as BAND would need 7.43 years to pay back of all of its debts.
BAND's Debt to FCF ratio of 7.43 is fine compared to the rest of the industry. BAND outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that BAND is somewhat dependend on debt financing.
BAND has a Debt to Equity ratio of 0.83. This is comparable to the rest of the industry: BAND outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 0.96 |
ROIC/WACCN/A
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.29 indicates that BAND should not have too much problems paying its short term obligations.
The Current ratio of BAND (1.29) is better than 74.19% of its industry peers.
A Quick Ratio of 1.29 indicates that BAND should not have too much problems paying its short term obligations.
BAND has a better Quick ratio (1.29) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.85% over the past year.
Measured over the past years, BAND shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.31% on average per year.
EPS 1Y (TTM)65.85%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%-2.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%26.96%
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 28.69% on average per year.
The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
EPS Next Y16.58%
EPS Next 2Y28.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.05%
Revenue Next 2Y8.77%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.50, the valuation of BAND can be described as correct.
70.97% of the companies in the same industry are more expensive than BAND, based on the Price/Earnings ratio.
BAND is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
BAND is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Based on the Price/Forward Earnings ratio, BAND is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
BAND is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAND is valued a bit more expensive than the industry average as 67.74% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAND is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.35 | ||
| EV/EBITDA | 31.68 |
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.
A more expensive valuation may be justified as BAND's earnings are expected to grow with 28.69% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y28.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BAND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17
-0.46 (-2.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners81.42%
Inst Owner Change2.37%
Ins Owners3.2%
Ins Owner Change5.75%
Market Cap467.67M
Analysts75.38
Price Target27.71 (63%)
Short Float %3.8%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.37%
Min EPS beat(2)20.42%
Max EPS beat(2)32.33%
EPS beat(4)4
Avg EPS beat(4)36.77%
Min EPS beat(4)20.42%
Max EPS beat(4)63.56%
EPS beat(8)8
Avg EPS beat(8)138.71%
EPS beat(12)12
Avg EPS beat(12)195.32%
EPS beat(16)16
Avg EPS beat(16)325.86%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)2.37%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)5.25%
Revenue beat(8)6
Avg Revenue beat(8)2.15%
Revenue beat(12)10
Avg Revenue beat(12)2.29%
Revenue beat(16)14
Avg Revenue beat(16)3.03%
PT rev (1m)0%
PT rev (3m)0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.66 | ||
| P/FCF | 11.35 | ||
| P/OCF | 7.02 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.68 |
EPS(TTM)1.36
EY8%
EPS(NY)1.59
Fwd EY9.33%
FCF(TTM)1.5
FCFY8.81%
OCF(TTM)2.42
OCFY14.25%
SpS25.59
BVpS12.23
TBVpS-5.93
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -4.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.72% | ||
| FCFM | 5.85% |
ROA(3y)-0.65%
ROA(5y)-1.23%
ROE(3y)-1.65%
ROE(5y)-2.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 12.92 | ||
| Cap/Depr | 51.74% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 306.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 0.96 |
F-Score4
WACC6.56%
ROIC/WACCN/A
Cap/Depr(3y)108.13%
Cap/Depr(5y)136.25%
Cap/Sales(3y)7.45%
Cap/Sales(5y)7.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.85%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%-2.63%
EPS Next Y16.58%
EPS Next 2Y28.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%26.96%
Revenue Next Year3.05%
Revenue Next 2Y8.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year856.77%
EBIT Next 3Y137.78%
EBIT Next 5YN/A
FCF growth 1Y248.86%
FCF growth 3YN/A
FCF growth 5Y13.41%
OCF growth 1Y60.76%
OCF growth 3Y105.11%
OCF growth 5Y9.63%