BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
NASDAQ:BAND - Nasdaq - US05988J1034 - Common Stock - Currency: USD
BAND gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. BAND scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BAND is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
In the past year BAND was profitable.
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 (-0.11%) which is in line with its industry peers.
BAND's Return On Equity of -0.30% is in line compared to the rest of the industry. BAND outperforms 51.52% of 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
The Gross Margin of BAND (38.05%) is worse than 75.76% of its industry peers.
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 | 38.05% |
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.
Compared to 1 year ago, BAND has more shares outstanding
Compared to 5 years ago, BAND has more shares outstanding
Compared to 1 year ago, BAND has an improved debt to assets ratio.
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.
BAND has a Altman-Z score of 1.11. This is in the better half of the industry: BAND outperforms 69.70% of its industry peers.
The Debt to FCF ratio of BAND is 5.13, which is a neutral value as it means it would take BAND, 5.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.13, BAND belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
BAND has a Debt/Equity ratio of 0.71. This is a neutral value indicating BAND is somewhat dependend on debt financing.
BAND has a better Debt to Equity ratio (0.71) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.13 | ||
| Altman-Z | 1.11 |
ROIC/WACCN/A
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.31 indicates that BAND should not have too much problems paying its short term obligations.
The Current ratio of BAND (1.31) is better than 69.70% 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 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
BAND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.42%, which is quite impressive.
Measured over the past years, BAND shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.31% on average per year.
BAND shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.50%.
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.
Based on estimates for the next years, BAND will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y17.66%
EPS Next 2Y26.65%
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.
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 10.72, the valuation of BAND can be described as very reasonable.
90.91% of the companies in the same industry are more expensive than BAND, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, BAND is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.12, the valuation of BAND can be described as very cheap.
96.97% 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 (36.44), we can say BAND is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 7.12 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAND indicates a somewhat cheap valuation: BAND is cheaper than 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.32 | ||
| EV/EBITDA | 19.12 |
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)0.61
PEG (5Y)N/A
EPS Next 2Y26.65%
EPS Next 3Y21.25%
5. Dividend
5.1 Amount
BAND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.54
-0.3 (-1.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners76.57%
Inst Owner Change0.05%
Ins Owners2.87%
Ins Owner Change-0.97%
Market Cap462.47M
Analysts76.67
Price Target19.99 (28.64%)
Short Float %4.44%
Short Ratio4.36
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)0%
PT rev (3m)-24.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)0%
EPS NY rev (3m)7.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 7.12 | ||
| P/S | 0.62 | ||
| P/FCF | 9.32 | ||
| P/OCF | 5.9 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.12 |
EPS(TTM)1.45
EY9.33%
EPS(NY)2.18
Fwd EY14.04%
FCF(TTM)1.67
FCFY10.73%
OCF(TTM)2.63
OCFY16.94%
SpS25.26
BVpS11.61
TBVpS-4.34
PEG (NY)0.61
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 | 1.11 |
F-Score5
WACC6.87%
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 2Y26.65%
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