BOX INC - CLASS A (BOX) Stock Fundamental Analysis
NYSE:BOX - New York Stock Exchange, Inc. - US10316T1043 - Common Stock - Currency: USD
BOX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. BOX has only an average score on both its financial health and profitability. BOX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BOX had positive earnings in the past year.
BOX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BOX reported negative net income in multiple years.
In the past 5 years BOX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BOX (11.79%) is better than 89.01% of its industry peers.
With an excellent Return On Equity value of 90.21%, BOX belongs to the best of the industry, outperforming 98.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.02%, BOX is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BOX is significantly below the industry average of 12.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.79% | ||
| ROE | 90.21% | ||
| ROIC | 7.02% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.16%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BOX (17.57%) is better than 84.75% of its industry peers.
BOX has a Operating Margin of 6.17%. This is in the better half of the industry: BOX outperforms 71.99% of its industry peers.
BOX has a better Gross Margin (79.08%) than 78.01% of its industry peers.
BOX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 17.57% | ||
| GM | 79.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.43%
GM growth 5Y2.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BOX is destroying value.
The number of shares outstanding for BOX remains at a similar level compared to 1 year ago.
The number of shares outstanding for BOX has been reduced compared to 5 years ago.
BOX has a worse debt/assets ratio than last year.
2.2 Solvency
BOX has an Altman-Z score of 2.18. This is not the best score and indicates that BOX is in the grey zone with still only limited risk for bankruptcy at the moment.
BOX's Altman-Z score of 2.18 is in line compared to the rest of the industry. BOX outperforms 49.65% of its industry peers.
The Debt to FCF ratio of BOX is 2.21, which is a good value as it means it would take BOX, 2.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BOX (2.21) is better than 67.02% of its industry peers.
A Debt/Equity ratio of 2.09 is on the high side and indicates that BOX has dependencies on debt financing.
BOX has a Debt to Equity ratio of 2.09. This is in the lower half of the industry: BOX underperforms 79.79% of its industry peers.
Although BOX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.83
WACC8.46%
2.3 Liquidity
BOX has a Current Ratio of 1.20. This is a normal value and indicates that BOX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.20, BOX is doing worse than 63.48% of the companies in the same industry.
BOX has a Quick Ratio of 1.20. This is a normal value and indicates that BOX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, BOX is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
BOX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
Measured over the past years, BOX shows a very strong growth in Earnings Per Share. The EPS has been growing by 124.22% on average per year.
BOX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.88%.
Measured over the past years, BOX shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y (TTM)5.23%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%4.39%
3.2 Future
BOX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.29% yearly.
Based on estimates for the next years, BOX will show a quite strong growth in Revenue. The Revenue will grow by 9.19% on average per year.
EPS Next Y-21.08%
EPS Next 2Y-5.09%
EPS Next 3Y8.33%
EPS Next 5Y16.29%
Revenue Next Year7.45%
Revenue Next 2Y7.44%
Revenue Next 3Y8.29%
Revenue Next 5Y9.19%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.93, which indicates a rather expensive current valuation of BOX.
Compared to the rest of the industry, the Price/Earnings ratio of BOX indicates a somewhat cheap valuation: BOX is cheaper than 78.72% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. BOX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 22.01, BOX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BOX is valued a bit cheaper than the industry average as 73.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, BOX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
BOX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BOX is cheaper than 64.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BOX is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.49 | ||
| EV/EBITDA | 50.31 |
4.3 Compensation for Growth
BOX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-5.09%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
No dividends for BOX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.7
-0.47 (-1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.24%
Inst Owner Change-0.26%
Ins Owners3.26%
Ins Owner Change0.01%
Market Cap4.88B
Analysts78.57
Price Target38.87 (15.34%)
Short Float %10.45%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP7.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.33%
Min EPS beat(2)-0.06%
Max EPS beat(2)14.73%
EPS beat(4)3
Avg EPS beat(4)7.12%
Min EPS beat(4)-0.06%
Max EPS beat(4)14.73%
EPS beat(8)6
Avg EPS beat(8)5.12%
EPS beat(12)10
Avg EPS beat(12)5.64%
EPS beat(16)14
Avg EPS beat(16)5.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)-0.46%
Revenue beat(8)0
Avg Revenue beat(8)-0.83%
Revenue beat(12)1
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)4.45%
PT rev (3m)-1.88%
EPS NQ rev (1m)12.21%
EPS NQ rev (3m)12.21%
EPS NY rev (1m)4.06%
EPS NY rev (3m)7.11%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 22.01 | ||
| P/S | 4.43 | ||
| P/FCF | 16.49 | ||
| P/OCF | 14.87 | ||
| P/B | 22.74 | ||
| P/tB | 36.4 | ||
| EV/EBITDA | 50.31 |
EPS(TTM)1.61
EY4.78%
EPS(NY)1.53
Fwd EY4.54%
FCF(TTM)2.04
FCFY6.07%
OCF(TTM)2.27
OCFY6.72%
SpS7.61
BVpS1.48
TBVpS0.93
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.79% | ||
| ROE | 90.21% | ||
| ROCE | 8.89% | ||
| ROIC | 7.02% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.17% | ||
| PM (TTM) | 17.57% | ||
| GM | 79.08% | ||
| FCFM | 26.87% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.16%
ROIC(5y)N/A
ROICexc(3y)141.33%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.07%
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 3Y3.43%
GM growth 5Y2.75%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 132.15% | ||
| Cap/Sales | 2.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 355.58% | ||
| Profit Quality | 152.91% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.18 |
F-Score7
WACC8.46%
ROIC/WACC0.83
Cap/Depr(3y)65.86%
Cap/Depr(5y)46.57%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.91%
Profit Quality(3y)1242%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.23%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-23.08%
EPS Next Y-21.08%
EPS Next 2Y-5.09%
EPS Next 3Y8.33%
EPS Next 5Y16.29%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%4.39%
Revenue Next Year7.45%
Revenue Next 2Y7.44%
Revenue Next 3Y8.29%
Revenue Next 5Y9.19%
EBIT growth 1Y12.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.27%
EBIT Next 3Y15.3%
EBIT Next 5Y1.46%
FCF growth 1Y0.13%
FCF growth 3Y10.43%
FCF growth 5Y57.36%
OCF growth 1Y4.1%
OCF growth 3Y12.27%
OCF growth 5Y49.36%