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. BAND scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BAND is growing strongly while it also seems undervalued. This is an interesting 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.
BAND had negative earnings in 4 of the past 5 years.
Each year in the past 5 years BAND had a positive operating cash flow.
1.2 Ratios
BAND has a Return On Assets (-0.66%) which is in line with its industry peers.
BAND's Return On Equity of -2.09% is in line compared to the rest of the industry. BAND outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -2.09% | ||
| 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 (37.40%) than 72.73% 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 | 37.4% |
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.
The number of shares outstanding for BAND has been increased compared to 1 year ago.
Compared to 5 years ago, BAND has more shares outstanding
BAND has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that BAND is in the distress zone and has some risk of bankruptcy.
BAND has a Altman-Z score of 0.97. This is in the better half of the industry: BAND outperforms 69.70% of its industry peers.
BAND has a debt to FCF ratio of 4.81. This is a neutral value as BAND would need 4.81 years to pay back of all of its debts.
BAND has a Debt to FCF ratio of 4.81. This is amongst the best in the industry. BAND outperforms 81.82% of its industry peers.
BAND has a Debt/Equity ratio of 0.90. This is a neutral value indicating BAND is somewhat dependend on debt financing.
BAND has a Debt to Equity ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 0.97 |
ROIC/WACCN/A
WACC6.5%
2.3 Liquidity
A Current Ratio of 1.34 indicates that BAND should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, BAND is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that BAND should not have too much problems paying its short term obligations.
The Quick ratio of BAND (1.34) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
BAND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.85%, 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.
Looking at the last year, BAND shows a very strong growth in Revenue. The Revenue has grown by 24.52%.
The Revenue has been growing by 26.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)65.85%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%-2.63%
Revenue 1Y (TTM)24.52%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%26.96%
3.2 Future
BAND is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.01% yearly.
BAND is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.68% yearly.
EPS Next Y9.24%
EPS Next 2Y18.77%
EPS Next 3Y25.01%
EPS Next 5YN/A
Revenue Next Year0.46%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
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
BAND is valuated reasonably with a Price/Earnings ratio of 8.96.
Based on the Price/Earnings ratio, BAND is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
BAND is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.20, the valuation of BAND can be described as reasonable.
Based on the Price/Forward Earnings ratio, BAND is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.74. BAND is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAND is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
BAND's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAND is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 19.1 |
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 25.01% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y18.77%
EPS Next 3Y25.01%
5. Dividend
5.1 Amount
No dividends for BAND!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.18
-0.31 (-2.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners81.42%
Inst Owner Change-0.93%
Ins Owners3.2%
Ins Owner Change2.62%
Market Cap361.87M
Analysts75
Price Target24.31 (99.59%)
Short Float %3.64%
Short Ratio2.94
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)12.5%
Min EPS beat(2)-7.33%
Max EPS beat(2)32.33%
EPS beat(4)3
Avg EPS beat(4)19.04%
Min EPS beat(4)-7.33%
Max EPS beat(4)32.33%
EPS beat(8)7
Avg EPS beat(8)94.45%
EPS beat(12)11
Avg EPS beat(12)180.8%
EPS beat(16)15
Avg EPS beat(16)310.25%
Revenue beat(2)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)1.16%
Max Revenue beat(2)4.45%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)4.45%
Revenue beat(8)6
Avg Revenue beat(8)1.71%
Revenue beat(12)10
Avg Revenue beat(12)1.99%
Revenue beat(16)14
Avg Revenue beat(16)2.19%
PT rev (1m)-7.74%
PT rev (3m)-12.27%
EPS NQ rev (1m)2.72%
EPS NQ rev (3m)-16.15%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-6.3%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-8.04%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 8.2 | ||
| P/S | 0.48 | ||
| P/FCF | 6.19 | ||
| P/OCF | 4.31 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.1 |
EPS(TTM)1.36
EY11.17%
EPS(NY)1.49
Fwd EY12.2%
FCF(TTM)1.97
FCFY16.17%
OCF(TTM)2.82
OCFY23.18%
SpS25.19
BVpS10.52
TBVpS-5.05
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -2.09% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.4% | ||
| FCFM | 7.82% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 9.64 | ||
| Cap/Depr | 51.54% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 287.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 0.97 |
F-Score5
WACC6.5%
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)65.85%
EPS 3Y12.31%
EPS 5YN/A
EPS Q2Q%-2.63%
EPS Next Y9.24%
EPS Next 2Y18.77%
EPS Next 3Y25.01%
EPS Next 5YN/A
Revenue 1Y (TTM)24.52%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%26.96%
Revenue Next Year0.46%
Revenue Next 2Y6.92%
Revenue Next 3Y7.68%
Revenue Next 5YN/A
EBIT growth 1Y43.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year78.68%
EBIT Next 3Y41.97%
EBIT Next 5YN/A
FCF growth 1Y206.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.08%
OCF growth 3Y27.16%
OCF growth 5YN/A