BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
USA - NASDAQ:BAND - US05988J1034 - Common Stock
16.41 USD
+0.01 (+0.06%)
16.41 USD
0 (0%)
Overall BAND gets a fundamental rating of 5 out of 10. We evaluated BAND against 35 industry peers in the Diversified Telecommunication Services industry. While BAND seems to be doing ok healthwise, there are quite some concerns on its profitability. An interesting combination arises when we look at growth and value: BAND is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
BAND had positive earnings in the past year.
In the past year BAND had a positive cash flow from operations.
In the past 5 years BAND reported 4 times negative net income.
In the past 5 years BAND always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.98%, BAND perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
BAND has a Return On Equity (-2.60%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.98% | ||
| ROE | -2.6% | ||
| ROIC | N/A |
ROA(3y)-0.01%
ROA(5y)-1.51%
ROE(3y)-0.13%
ROE(5y)-3.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 38.63%, BAND is doing worse than 72.22% of the companies in the same industry.
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 | 38.63% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.95%
GM growth 5Y-4.21%
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.
The number of shares outstanding for BAND has been increased compared to 5 years ago.
The debt/assets ratio for BAND has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that BAND is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BAND (1.11) is better than 72.22% of its industry peers.
The Debt to FCF ratio of BAND is 4.47, which is a neutral value as it means it would take BAND, 4.47 years of fcf income to pay off all of its debts.
BAND's Debt to FCF ratio of 4.47 is amongst the best of the industry. BAND outperforms 86.11% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that BAND is somewhat dependend on debt financing.
The Debt to Equity ratio of BAND (0.64) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 1.11 |
ROIC/WACCN/A
WACC6.73%
2.3 Liquidity
A Current Ratio of 1.31 indicates that BAND should not have too much problems paying its short term obligations.
BAND's Current ratio of 1.31 is fine compared to the rest of the industry. BAND outperforms 69.44% of its industry peers.
BAND has a Quick Ratio of 1.31. This is a normal value and indicates that BAND is financially healthy and should not expect problems in meeting its short term obligations.
BAND has a Quick ratio of 1.31. This is in the better half of the industry: BAND outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.62% over the past year.
BAND shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.31% yearly.
Looking at the last year, BAND shows a quite strong growth in Revenue. The Revenue has grown by 14.51% in the last year.
Measured over the past years, BAND shows a very strong growth in Revenue. The Revenue has been growing by 26.33% on average per year.
EPS 1Y (TTM)31.62%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%31.03%
Revenue 1Y (TTM)14.51%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%3.69%
3.2 Future
The Earnings Per Share is expected to grow by 22.87% on average over the next years. This is a very strong growth
BAND is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.50% yearly.
EPS Next Y19.32%
EPS Next 2Y28.03%
EPS Next 3Y22.87%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y7.45%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 10.66, which indicates a very decent valuation of BAND.
Based on the Price/Earnings ratio, BAND is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
BAND is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.36 indicates a rather cheap valuation of BAND.
100.00% of the companies in the same industry are more expensive than BAND, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, BAND is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAND.
Based on the Price/Free Cash Flow ratio, BAND is valued a bit cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.69 | ||
| EV/EBITDA | 17.55 |
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 22.87% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y22.87%
5. Dividend
5.1 Amount
No dividends for BAND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.41
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners75.3%
Inst Owner Change3.8%
Ins Owners2.78%
Ins Owner Change0.81%
Market Cap494.60M
Analysts80
Price Target21.93 (33.64%)
Short Float %3.92%
Short Ratio3.87
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)21.24%
Min EPS beat(2)11.77%
Max EPS beat(2)30.72%
EPS beat(4)3
Avg EPS beat(4)16.87%
Min EPS beat(4)-7.33%
Max EPS beat(4)32.33%
EPS beat(8)7
Avg EPS beat(8)27.02%
EPS beat(12)11
Avg EPS beat(12)163.93%
EPS beat(16)15
Avg EPS beat(16)161.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)1.1%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)4.45%
Revenue beat(8)5
Avg Revenue beat(8)1.31%
Revenue beat(12)9
Avg Revenue beat(12)1.78%
Revenue beat(16)13
Avg Revenue beat(16)1.91%
PT rev (1m)9.69%
PT rev (3m)9.69%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-6.43%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 7.36 | ||
| P/S | 0.65 | ||
| P/FCF | 8.69 | ||
| P/OCF | 5.78 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)1.54
EY9.38%
EPS(NY)2.23
Fwd EY13.59%
FCF(TTM)1.89
FCFY11.51%
OCF(TTM)2.84
OCFY17.31%
SpS25.15
BVpS12.76
TBVpS-4.03
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.98% | ||
| ROE | -2.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.63% | ||
| FCFM | 7.51% |
ROA(3y)-0.01%
ROA(5y)-1.51%
ROE(3y)-0.13%
ROE(5y)-3.45%
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-4.95%
GM growth 5Y-4.21%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.47 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 56.99% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 223.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 1.11 |
F-Score7
WACC6.73%
ROIC/WACCN/A
Cap/Depr(3y)75.61%
Cap/Depr(5y)92.55%
Cap/Sales(3y)4.88%
Cap/Sales(5y)6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.62%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%31.03%
EPS Next Y19.32%
EPS Next 2Y28.03%
EPS Next 3Y22.87%
EPS Next 5YN/A
Revenue 1Y (TTM)14.51%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%3.69%
Revenue Next Year1.34%
Revenue Next 2Y7.45%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
EBIT growth 1Y63.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year83.06%
EBIT Next 3Y38.3%
EBIT Next 5YN/A
FCF growth 1Y548.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y173.37%
OCF growth 3Y27.16%
OCF growth 5YN/A