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 not overvalued while it is showing excellent growth. This is an interesting combination.
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.
The reported net income has been mixed in the past 5 years: BAND reported negative net income in multiple years.
Of the past 5 years BAND 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.52%, BAND is in line with its industry, outperforming 42.42% of the companies in the same industry.
BAND has a Return On Equity (-4.66%) which is comparable to the rest of the 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
BAND has a worse Gross Margin (37.72%) than 75.76% of its industry peers.
In the last couple of years the Gross Margin of BAND has declined.
BAND does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
BAND has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BAND has more shares outstanding
Compared to 1 year ago, BAND has an improved debt to assets ratio.
2.2 Solvency
BAND has an Altman-Z score of 1.01. 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 1.01. This is in the better half of the industry: BAND outperforms 69.70% 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.
The Debt to FCF ratio of BAND (7.43) is better than 69.70% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that BAND is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, BAND is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.01 |
ROIC/WACCN/A
WACC6.71%
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 69.70% of its industry peers.
A Quick Ratio of 1.29 indicates that BAND should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.29, BAND is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
BAND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.46%, which is quite impressive.
BAND shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.10% yearly.
The Revenue has grown by 18.76% in the past year. This is quite good.
BAND shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
EPS 1Y (TTM)117.46%
EPS 3Y14.94%
EPS 5Y30.1%
EPS Q2Q%86.96%
Revenue 1Y (TTM)18.76%
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 40.05% on average per year.
The Revenue is expected to grow by 14.17% on average over the next years. This is quite good.
EPS Next Y69.17%
EPS Next 2Y39.05%
EPS Next 3Y40.05%
EPS Next 5YN/A
Revenue Next Year25.8%
Revenue Next 2Y13.86%
Revenue Next 3Y14.17%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.05, the valuation of BAND can be described as correct.
69.70% of the companies in the same industry are more expensive than BAND, based on the Price/Earnings ratio.
BAND's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 13.00, the valuation of BAND can be described as correct.
Based on the Price/Forward Earnings ratio, BAND is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, BAND is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAND indicates a slightly more expensive valuation: BAND is more expensive than 69.70% of the companies listed in the same industry.
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 | 13.76 | ||
| EV/EBITDA | 34.5 |
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 40.05% in the coming years.
PEG (NY)0.22
PEG (5Y)0.5
EPS Next 2Y39.05%
EPS Next 3Y40.05%
5. Dividend
5.1 Amount
BAND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BANDWIDTH INC-CLASS A
NASDAQ:BAND (11/22/2024, 2:01:17 PM)
20.615
+1.38 (+7.2%)
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 Cap567.12M
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 15.05 | ||
| Fwd PE | 13 | ||
| 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)0.22
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -4.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.72% | ||
| 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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| 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 Y69.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.76%
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