BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
USA - NASDAQ:BAND - US05988J1034 - Common Stock
16.96 USD
+0.25 (+1.5%)
16.96 USD
0 (0%)
BAND gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 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
BAND had positive earnings in the past year.
BAND had a positive operating cash flow in the past year.
BAND had negative earnings in 4 of the past 5 years.
BAND had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAND has a Return On Assets of -0.98%. This is comparable to the rest of the industry: BAND outperforms 55.56% of its industry peers.
The Return On Equity of BAND (-2.60%) is comparable to the rest of the industry.
| 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
BAND has a worse Gross Margin (38.63%) than 69.44% of its industry peers.
In the last couple of years the Gross Margin of BAND has declined.
The Profit Margin and Operating Margin are not available for BAND so they could not be analyzed.
| 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.
Compared to 1 year ago, BAND has more shares outstanding
Compared to 5 years ago, BAND has more shares outstanding
The debt/assets ratio for BAND has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that BAND is in the distress zone and has some risk of bankruptcy.
BAND's Altman-Z score of 1.12 is fine compared to the rest of the industry. BAND outperforms 69.44% 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.
BAND's Debt to Equity ratio of 0.64 is fine compared to the rest of the industry. BAND outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACC6.73%
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.
BAND has a better Current ratio (1.31) than 69.44% of its industry peers.
A Quick Ratio of 1.31 indicates that BAND should not have too much problems paying its short term obligations.
The Quick ratio of BAND (1.31) is better than 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.
BAND shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.33% yearly.
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
Based on estimates for the next years, BAND will show a very strong growth in Earnings Per Share. The EPS will grow by 22.23% on average per year.
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 Y20.1%
EPS Next 2Y28.7%
EPS Next 3Y22.23%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y7.44%
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
Based on the Price/Earnings ratio of 11.01, the valuation of BAND can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BAND indicates a rather cheap valuation: BAND is cheaper than 97.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. BAND is valued rather cheaply when compared to this.
BAND is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
100.00% of the companies in the same industry are more expensive than BAND, based on the Price/Forward Earnings ratio.
BAND's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
BAND's Enterprise Value to EBITDA is on the same level as the industry average.
BAND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAND is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.98 | ||
| EV/EBITDA | 17.79 |
4.3 Compensation for Growth
The 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 22.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y28.7%
EPS Next 3Y22.23%
5. Dividend
5.1 Amount
No dividends for BAND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.96
+0.25 (+1.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change0.57%
Ins Owners2.73%
Ins Owner Change0.49%
Market Cap511.17M
Revenue(TTM)758.11M
Net Income(TTM)-10017000
Analysts80
Price Target21.93 (29.3%)
Short Float %3.49%
Short Ratio4.03
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)0%
PT rev (3m)9.69%
EPS NQ rev (1m)3.99%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)0%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 7.53 | ||
| P/S | 0.67 | ||
| P/FCF | 8.98 | ||
| P/OCF | 5.97 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.79 |
EPS(TTM)1.54
EY9.08%
EPS(NY)2.25
Fwd EY13.28%
FCF(TTM)1.89
FCFY11.14%
OCF(TTM)2.84
OCFY16.75%
SpS25.15
BVpS12.76
TBVpS-4.03
PEG (NY)0.55
PEG (5Y)N/A
Graham Number21.03
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.12 |
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 Y20.1%
EPS Next 2Y28.7%
EPS Next 3Y22.23%
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 2Y7.44%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
EBIT growth 1Y63.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82.87%
EBIT Next 3Y38.42%
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
BANDWIDTH INC-CLASS A / BAND FAQ
What is the ChartMill fundamental rating of BANDWIDTH INC-CLASS A (BAND) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BAND.
What is the valuation status for BAND stock?
ChartMill assigns a valuation rating of 8 / 10 to BANDWIDTH INC-CLASS A (BAND). This can be considered as Undervalued.
What is the profitability of BAND stock?
BANDWIDTH INC-CLASS A (BAND) has a profitability rating of 2 / 10.
What are the PE and PB ratios of BANDWIDTH INC-CLASS A (BAND) stock?
The Price/Earnings (PE) ratio for BANDWIDTH INC-CLASS A (BAND) is 11.01 and the Price/Book (PB) ratio is 1.33.