BANDWIDTH INC-CLASS A (BAND)
US05988J1034 - Common Stock
We assign a fundamental rating of 4 out of 10 to BAND. 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 is still valued neutral. This is a good 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 multiple years BAND reported negative net income over the last 5 years.
Of the past 5 years BAND 4 years had a positive operating cash flow.
1.2 Ratios
BAND has a Return On Assets of -1.48%. This is in the lower half of the industry: BAND underperforms 65.71% of its industry peers.
BAND has a worse Return On Equity (-5.49%) than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -5.49% | ||
| ROIC | N/A |
ROA(3y)-0.65%
ROA(5y)-1.23%
ROE(3y)-1.65%
ROE(5y)-2.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BAND's Gross Margin of 39.30% is on the low side compared to the rest of the industry. BAND is outperformed by 80.00% 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 | 39.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.32%
GM growth 5Y-3.56%
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.
The number of shares outstanding for BAND has been increased compared to 5 years ago.
BAND has a better debt/assets ratio than last year.
2.2 Solvency
BAND has an Altman-Z score of 0.90. 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 (0.90) than 62.86% of its industry peers.
The Debt to FCF ratio of BAND is 21.91, which is on the high side as it means it would take BAND, 21.91 years of fcf income to pay off all of its debts.
BAND has a Debt to FCF ratio of 21.91. This is comparable to the rest of the industry: BAND outperforms 45.71% of its industry peers.
BAND has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.41, BAND perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 21.91 | ||
| Altman-Z | 0.9 |
ROIC/WACCN/A
WACC6.83%
2.3 Liquidity
BAND has a Current Ratio of 2.06. This indicates that BAND is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.06, BAND belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
BAND has a Quick Ratio of 2.06. This indicates that BAND is financially healthy and has no problem in meeting its short term obligations.
BAND has a Quick ratio of 2.06. This is amongst the best in the industry. BAND outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
BAND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.78%, which is quite impressive.
BAND shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.10% yearly.
The Revenue has been growing slightly by 4.86% in the past year.
BAND shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
EPS 1Y (TTM)60.78%
EPS 3Y14.94%
EPS 5Y30.1%
EPS growth Q2Q100%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y20.55%
Revenue growth 5Y24.11%
Revenue growth Q2Q5.34%
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 48.07% on average per year.
BAND is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y67.61%
EPS Next 2Y40.55%
EPS Next 3Y48.07%
EPS Next 5YN/A
Revenue Next Year18.86%
Revenue Next 2Y11.8%
Revenue Next 3Y12.52%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
BAND is valuated rather expensively with a Price/Earnings ratio of 23.57.
Compared to the rest of the industry, the Price/Earnings ratio of BAND is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BAND to the average of the S&P500 Index (28.06), we can say BAND is valued inline with the index average.
A Price/Forward Earnings ratio of 14.06 indicates a correct valuation of BAND.
Based on the Price/Forward Earnings ratio, BAND is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. BAND is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.57 | ||
| Fwd PE | 14.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAND is valued a bit more expensive than the industry average as 77.14% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as BAND.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.3 | ||
| EV/EBITDA | 123.29 |
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 48.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.78
EPS Next 2Y40.55%
EPS Next 3Y48.07%
5. Dividend
5.1 Amount
BAND does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BANDWIDTH INC-CLASS A
NASDAQ:BAND (5/3/2024, 2:06:34 PM)
19.33
-0.35 (-1.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap521.52M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.57 | ||
| Fwd PE | 14.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.35
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -5.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 39.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)60.78%
EPS 3Y14.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y67.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.86%
Revenue growth 3Y20.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y