BANDWIDTH INC-CLASS A (BAND) Stock Fundamental Analysis
NASDAQ:BAND - US05988J1034 - Common Stock
14.75 USD
+0.63 (+4.46%)
14.69 USD
-0.06 (-0.41%)
Taking everything into account, BAND scores 5 out of 10 in our fundamental rating. BAND was compared to 35 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 is growing strongly while it also seems undervalued. This is an interesting combination
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.
Each year in the past 5 years BAND had a positive operating cash flow.
1.2 Ratios
BAND has a Return On Assets (-0.98%) which is comparable to the rest of the industry.
BAND has a Return On Equity (-2.60%) which 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
Looking at the Gross Margin, with a value of 38.63%, BAND is doing worse than 77.14% of the companies in the same industry.
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 | 38.63% |
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
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 1.04, we must say that BAND is in the distress zone and has some risk of bankruptcy.
BAND has a better Altman-Z score (1.04) than 68.57% of its industry peers.
BAND has a debt to FCF ratio of 4.47. This is a neutral value as BAND would need 4.47 years to pay back of all of its debts.
BAND has a Debt to FCF ratio of 4.47. This is amongst the best in the industry. BAND outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that BAND is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, BAND is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 1.04 |
ROIC/WACCN/A
WACC6.76%
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's Current ratio of 1.31 is fine compared to the rest of the industry. BAND outperforms 62.86% of its industry peers.
A Quick Ratio of 1.31 indicates that BAND should not have too much problems paying its short term obligations.
BAND has a Quick ratio of 1.31. This is in the better half of the industry: BAND outperforms 65.71% 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 31.62%, which is quite impressive.
The Earnings Per Share has been growing by 12.31% on average over the past years. This is quite good.
The Revenue has grown by 14.51% in the past year. This is quite good.
The Revenue has been growing by 26.33% on average over the past years. This is a very strong growth!
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
BAND is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.25% yearly.
BAND is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.46% yearly.
EPS Next Y17.66%
EPS Next 2Y26.65%
EPS Next 3Y21.25%
EPS Next 5YN/A
Revenue Next Year1.23%
Revenue Next 2Y7.22%
Revenue Next 3Y7.46%
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.
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
Based on the Price/Earnings ratio of 9.58, the valuation of BAND can be described as reasonable.
Based on the Price/Earnings ratio, BAND is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
BAND's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of BAND can be described as very cheap.
Based on the Price/Forward Earnings ratio, BAND is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
BAND's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAND indicates a slightly more expensive valuation: BAND is more expensive than 60.00% of the companies listed in the same industry.
74.29% of the companies in the same industry are more expensive than BAND, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| EV/EBITDA | 15.75 |
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.
A more expensive valuation may be justified as BAND's earnings are expected to grow with 21.25% in the coming years.
PEG (NY)0.54
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 |
14.75
+0.63 (+4.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners75.3%
Inst Owner Change3.75%
Ins Owners2.78%
Ins Owner Change-0.68%
Market Cap444.56M
Analysts76.67
Price Target19.99 (35.53%)
Short Float %5.17%
Short Ratio4.74
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)-19.01%
EPS NQ rev (1m)-7.31%
EPS NQ rev (3m)-11.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.59 | ||
| P/FCF | 7.81 | ||
| P/OCF | 5.19 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.75 |
EPS(TTM)1.54
EY10.44%
EPS(NY)2.18
Fwd EY14.79%
FCF(TTM)1.89
FCFY12.8%
OCF(TTM)2.84
OCFY19.26%
SpS25.15
BVpS12.76
TBVpS-4.03
PEG (NY)0.54
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 | 1.04 |
F-Score7
WACC6.76%
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 Y17.66%
EPS Next 2Y26.65%
EPS Next 3Y21.25%
EPS Next 5YN/A
Revenue 1Y (TTM)14.51%
Revenue growth 3Y15.1%
Revenue growth 5Y26.33%
Sales Q2Q%3.69%
Revenue Next Year1.23%
Revenue Next 2Y7.22%
Revenue Next 3Y7.46%
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