BOX INC - CLASS A (BOX)
US10316T1043 - Common Stock
We assign a fundamental rating of 5 out of 10 to BOX. BOX was compared to 284 industry peers in the Software industry. Both the profitability and the financial health of BOX get a neutral evaluation. Nothing too spectacular is happening here. BOX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BOX had positive earnings in the past year.
In the past year BOX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BOX reported negative net income in multiple years.
BOX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.31%, BOX belongs to the top of the industry, outperforming 88.38% of the companies in the same industry.
BOX's Return On Equity of 215.09% is amongst the best of the industry. BOX outperforms 99.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.34%, BOX belongs to the top of the industry, outperforming 88.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 215.09% | ||
| ROIC | 10.34% |
ROA(3y)1.61%
ROA(5y)-2.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 10.91%, BOX is doing good in the industry, outperforming 79.23% of the companies in the same industry.
With a decent Operating Margin value of 6.69%, BOX is doing good in the industry, outperforming 76.06% of the companies in the same industry.
Looking at the Gross Margin, with a value of 76.80%, BOX is in the better half of the industry, outperforming 72.54% of the companies in the same industry.
In the last couple of years the Gross Margin of BOX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.69% | ||
| PM (TTM) | 10.91% | ||
| GM | 76.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y0.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BOX is still creating some 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 remains at a similar level compared to 5 years ago.
The debt/assets ratio for BOX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.52 indicates that BOX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, BOX is in line with its industry, outperforming 52.11% of the companies in the same industry.
BOX has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.22, BOX is in the better half of the industry, outperforming 72.18% of the companies in the same industry.
BOX has a Debt/Equity ratio of 6.92. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BOX (6.92) is worse than 86.97% 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 | 6.92 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.11
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BOX should not have too much problems paying its short term obligations.
BOX has a worse Current ratio (1.25) than 62.32% of its industry peers.
A Quick Ratio of 1.25 indicates that BOX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, BOX is doing worse than 61.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.38% over the past year.
Measured over the past years, BOX shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.77% on average per year.
BOX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.85%.
The Revenue has been growing by 11.27% on average over the past years. This is quite good.
EPS 1Y (TTM)18.38%
EPS 3Y27.77%
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y10.42%
Revenue growth 5Y11.27%
Sales Q2Q%3.29%
3.2 Future
Based on estimates for the next years, BOX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.67% on average per year.
BOX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y15.01%
EPS Next 2Y13.34%
EPS Next 3Y12.49%
EPS Next 5Y11.67%
Revenue Next Year4.87%
Revenue Next 2Y5.62%
Revenue Next 3Y6.28%
Revenue Next 5Y6.65%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BOX is valuated rather expensively with a Price/Earnings ratio of 20.55.
Based on the Price/Earnings ratio, BOX is valued cheaper than 81.69% of the companies in the same industry.
BOX is valuated rather cheaply when we compare the Price/Earnings ratio to 30.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.64, BOX is valued on the expensive side.
81.34% of the companies in the same industry are more expensive than BOX, based on the Price/Forward Earnings ratio.
BOX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
BOX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BOX is cheaper than 67.25% of the companies in the same industry.
88.38% of the companies in the same industry are more expensive than BOX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.49 | ||
| EV/EBITDA | 42.34 |
4.3 Compensation for Growth
BOX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BOX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BOX's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y13.34%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
BOX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BOX INC - CLASS A
NYSE:BOX (9/18/2024, 8:04:01 PM)
After market: 33.09 0 (0%)33.09
-0.34 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.74B
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)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 17.64 | ||
| 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)1.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 215.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.69% | ||
| PM (TTM) | 10.91% | ||
| GM | 76.8% | ||
| 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| 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)18.38%
EPS 3Y27.77%
EPS 5Y
EPS Q2Q%
EPS Next Y15.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.85%
Revenue growth 3Y10.42%
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