BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
NASDAQ:BAND - Nasdaq - US05988J1034 - Common Stock - Currency: USD
Overall BAND gets a fundamental rating of 5 out of 10. We evaluated BAND against 33 industry peers in the Diversified Telecommunication Services industry. The financial health of BAND is average, but there are quite some concerns on its profitability. BAND has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
In the past 5 years BAND reported 4 times negative net income.
Each year in the past 5 years BAND had a positive operating cash flow.
1.2 Ratios
BAND has a Return On Assets of -0.11%. This is comparable to the rest of the industry: BAND outperforms 51.52% of its industry peers.
BAND has a Return On Equity (-0.30%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -0.3% | ||
| 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
BAND's Gross Margin of 38.05% is on the low side compared to the rest of the industry. BAND is outperformed by 75.76% of its industry peers.
BAND's Gross Margin has declined in the last couple of years.
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 | 38.05% |
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.
BAND has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BAND has an improved debt to assets ratio.
2.2 Solvency
BAND has an Altman-Z score of 1.08. This is a bad value and indicates that BAND is not financially healthy and even has some risk of bankruptcy.
BAND has a better Altman-Z score (1.08) than 66.67% of its industry peers.
BAND has a debt to FCF ratio of 5.13. This is a neutral value as BAND would need 5.13 years to pay back of all of its debts.
BAND's Debt to FCF ratio of 5.13 is amongst the best of the industry. BAND outperforms 84.85% of its industry peers.
BAND has a Debt/Equity ratio of 0.71. This is a neutral value indicating BAND is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.71, BAND is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.13 | ||
| Altman-Z | 1.08 |
ROIC/WACCN/A
WACC6.67%
2.3 Liquidity
BAND has a Current 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.
With a decent Current ratio value of 1.31, BAND is doing good in the industry, outperforming 69.70% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.31, BAND is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| 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 39.42% over the past year.
The Earnings Per Share has been growing by 12.31% on average over the past years. This is quite good.
Looking at the last year, BAND shows a quite strong growth in Revenue. The Revenue has grown by 18.50% in the last year.
BAND shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.33% yearly.
EPS 1Y (TTM)39.42%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)18.5%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%1.88%
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 21.25% on average per year.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y17.66%
EPS Next 2Y26.29%
EPS Next 3Y21.25%
EPS Next 5YN/A
Revenue Next Year1.28%
Revenue Next 2Y7.22%
Revenue Next 3Y7.46%
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.
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 9.49, which indicates a very decent valuation of BAND.
Compared to the rest of the industry, the Price/Earnings ratio of BAND indicates a rather cheap valuation: BAND is cheaper than 90.91% of the companies listed in the same industry.
BAND's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
BAND is valuated cheaply with a Price/Forward Earnings ratio of 6.34.
100.00% of the companies in the same industry are more expensive than BAND, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BAND to the average of the S&P500 Index (22.13), we can say BAND is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 6.34 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than BAND, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BAND is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 18.04 |
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.
BAND's earnings are expected to grow with 21.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y26.29%
EPS Next 3Y21.25%
5. Dividend
5.1 Amount
No dividends for BAND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.76
-0.5 (-3.51%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners81.42%
Inst Owner Change5.13%
Ins Owners3.2%
Ins Owner Change0.14%
Market Cap409.50M
Analysts75
Price Target19.99 (45.28%)
Short Float %4.22%
Short Ratio3.99
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)1
Avg EPS beat(2)11.7%
Min EPS beat(2)-7.33%
Max EPS beat(2)30.72%
EPS beat(4)3
Avg EPS beat(4)19.03%
Min EPS beat(4)-7.33%
Max EPS beat(4)32.33%
EPS beat(8)7
Avg EPS beat(8)59.73%
EPS beat(12)11
Avg EPS beat(12)166.24%
EPS beat(16)15
Avg EPS beat(16)177.02%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)1.1%
Max Revenue beat(2)1.16%
Revenue beat(4)3
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)4.45%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)10
Avg Revenue beat(12)1.89%
Revenue beat(16)14
Avg Revenue beat(16)2.09%
PT rev (1m)-19.01%
PT rev (3m)-24.13%
EPS NQ rev (1m)4.21%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)7.71%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 6.34 | ||
| P/S | 0.54 | ||
| P/FCF | 8.25 | ||
| P/OCF | 5.23 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.04 |
EPS(TTM)1.45
EY10.54%
EPS(NY)2.17
Fwd EY15.76%
FCF(TTM)1.67
FCFY12.12%
OCF(TTM)2.63
OCFY19.13%
SpS25.26
BVpS11.61
TBVpS-4.34
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.11% | ||
| ROE | -0.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.05% | ||
| FCFM | 6.6% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.13 | ||
| Debt/EBITDA | 7.05 | ||
| Cap/Depr | 58.22% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 223.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 1.08 |
F-Score5
WACC6.67%
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)39.42%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y17.66%
EPS Next 2Y26.29%
EPS Next 3Y21.25%
EPS Next 5YN/A
Revenue 1Y (TTM)18.5%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%1.88%
Revenue Next Year1.28%
Revenue Next 2Y7.22%
Revenue Next 3Y7.46%
Revenue Next 5YN/A
EBIT growth 1Y57.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82.3%
EBIT Next 3Y38.22%
EBIT Next 5YN/A
FCF growth 1Y665.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.16%
OCF growth 3Y27.16%
OCF growth 5YN/A