BOX INC - CLASS A (BOX) Stock Fundamental Analysis
NYSE:BOX - New York Stock Exchange, Inc. - US10316T1043 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BOX. BOX was compared to 285 industry peers in the Software industry. BOX has an excellent profitability rating, but there are some minor concerns on its financial health. BOX has a correct valuation and a medium growth rate.
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.
In multiple years BOX reported negative net income over the last 5 years.
BOX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BOX has a Return On Assets of 12.09%. This is amongst the best in the industry. BOX outperforms 88.42% of its industry peers.
BOX has a better Return On Equity (102.18%) than 98.60% of its industry peers.
BOX's Return On Invested Capital of 8.44% is amongst the best of the industry. BOX outperforms 82.11% of its industry peers.
BOX had an Average Return On Invested Capital over the past 3 years of 7.16%. This is below the industry average of 11.46%.
The 3 year average ROIC (7.16%) for BOX is below the current ROIC(8.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.09% | ||
| ROE | 102.18% | ||
| ROIC | 8.44% |
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
With an excellent Profit Margin value of 18.49%, BOX belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Operating Margin of BOX (7.31%) is better than 74.04% of its industry peers.
The Gross Margin of BOX (79.08%) is better than 77.89% of its industry peers.
BOX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.31% | ||
| PM (TTM) | 18.49% | ||
| 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.
Compared to 1 year ago, BOX has a worse debt to assets ratio.
2.2 Solvency
BOX has an Altman-Z score of 1.88. 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 has a Altman-Z score (1.88) which is in line with its industry peers.
BOX has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as BOX would need 2.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.16, BOX is doing good in the industry, outperforming 65.96% of the companies in the same industry.
A Debt/Equity ratio of 2.27 is on the high side and indicates that BOX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.27, BOX is not doing good in the industry: 79.65% of the companies in the same industry are doing better.
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 | 2.27 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.78
WACC10.82%
2.3 Liquidity
A Current Ratio of 1.19 indicates that BOX should not have too much problems paying its short term obligations.
BOX has a worse Current ratio (1.19) than 65.61% of its industry peers.
A Quick Ratio of 1.19 indicates that BOX should not have too much problems paying its short term obligations.
BOX's Quick ratio of 1.19 is on the low side compared to the rest of the industry. BOX is outperformed by 65.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.44% over the past year.
The Earnings Per Share has been growing by 124.22% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.05% in the past year.
The Revenue has been growing by 9.38% on average over the past years. This is quite good.
EPS 1Y (TTM)16.44%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%0%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%6.33%
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 12.70% yearly.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y-26.37%
EPS Next 2Y-5.55%
EPS Next 3Y7.48%
EPS Next 5Y12.7%
Revenue Next Year5.99%
Revenue Next 2Y6.59%
Revenue Next 3Y6.9%
Revenue Next 5Y6.8%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.18, BOX is valued on the expensive side.
BOX's Price/Earnings ratio is a bit cheaper when compared to the industry. BOX is cheaper than 79.30% of the companies in the same industry.
BOX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
BOX is valuated rather expensively with a Price/Forward Earnings ratio of 24.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BOX indicates a somewhat cheap valuation: BOX is cheaper than 70.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BOX to the average of the S&P500 Index (21.37), we can say BOX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 24.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BOX indicates a somewhat cheap valuation: BOX is cheaper than 68.42% of the companies listed in the same industry.
BOX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BOX is cheaper than 87.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 40.45 |
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)0.15
EPS Next 2Y-5.55%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
No dividends for BOX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BOX (4/23/2025, 9:50:09 AM)
30.905
+1.12 (+3.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-0.29%
Ins Owners3.18%
Ins Owner Change0%
Market Cap4.44B
Analysts78.57
Price Target37.34 (20.82%)
Short Float %11.14%
Short Ratio9.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP7.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.71%
Min EPS beat(2)-0.06%
Max EPS beat(2)5.48%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-0.06%
Max EPS beat(4)8.33%
EPS beat(8)6
Avg EPS beat(8)5.31%
EPS beat(12)10
Avg EPS beat(12)4.66%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.76%
Revenue beat(12)2
Avg Revenue beat(12)-0.69%
Revenue beat(16)4
Avg Revenue beat(16)-0.36%
PT rev (1m)-2.77%
PT rev (3m)-2.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.46%
EPS NY rev (1m)-33.69%
EPS NY rev (3m)-33.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 24.69 | ||
| P/S | 4.08 | ||
| P/FCF | 14.71 | ||
| P/OCF | 13.37 | ||
| P/B | 22.53 | ||
| P/tB | 36.94 | ||
| EV/EBITDA | 40.45 |
EPS(TTM)1.7
EY5.5%
EPS(NY)1.25
Fwd EY4.05%
FCF(TTM)2.1
FCFY6.8%
OCF(TTM)2.31
OCFY7.48%
SpS7.58
BVpS1.37
TBVpS0.84
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.09% | ||
| ROE | 102.18% | ||
| ROCE | 10.68% | ||
| ROIC | 8.44% | ||
| ROICexc | 278.02% | ||
| ROICexgc | N/A | ||
| OM | 7.31% | ||
| PM (TTM) | 18.49% | ||
| GM | 79.08% | ||
| FCFM | 27.71% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | 4.41 | ||
| Cap/Depr | 136.66% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 326.58% | ||
| Profit Quality | 149.85% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.88 |
F-Score7
WACC10.82%
ROIC/WACC0.78
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)16.44%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%0%
EPS Next Y-26.37%
EPS Next 2Y-5.55%
EPS Next 3Y7.48%
EPS Next 5Y12.7%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%6.33%
Revenue Next Year5.99%
Revenue Next 2Y6.59%
Revenue Next 3Y6.9%
Revenue Next 5Y6.8%
EBIT growth 1Y56.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.36%
EBIT Next 3Y18.03%
EBIT Next 5Y1.46%
FCF growth 1Y0.58%
FCF growth 3Y10.43%
FCF growth 5Y57.36%
OCF growth 1Y4.25%
OCF growth 3Y12.27%
OCF growth 5Y49.36%