BOX INC - CLASS A (BOX) Stock Fundamental Analysis
USA - NYSE:BOX - US10316T1043 - Common Stock
33.08 USD
+0.45 (+1.38%)
33.07 USD
-0.01 (-0.03%)
We assign a fundamental rating of 5 out of 10 to BOX. BOX was compared to 285 industry peers in the Software industry. Both the profitability and the financial health of BOX get a neutral evaluation. Nothing too spectacular is happening here. BOX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BOX had positive earnings in the past year.
BOX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BOX reported negative net income in multiple years.
In the past 5 years BOX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.53%, BOX belongs to the best of the industry, outperforming 88.42% of the companies in the same industry.
The Return On Equity of BOX (82.92%) is better than 98.25% of its industry peers.
BOX's Return On Invested Capital of 6.99% is fine compared to the rest of the industry. BOX outperforms 75.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BOX is below the industry average of 11.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 82.92% | ||
| ROIC | 6.99% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.17%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 16.64%, BOX belongs to the top of the industry, outperforming 81.05% of the companies in the same industry.
BOX's Operating Margin of 6.06% is fine compared to the rest of the industry. BOX outperforms 69.47% of its industry peers.
BOX has a Gross Margin of 78.99%. This is in the better half of the industry: BOX outperforms 77.54% of its industry peers.
BOX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.06% | ||
| PM (TTM) | 16.64% | ||
| GM | 78.99% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.43%
GM growth 5Y2.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BOX is destroying value.
The number of shares outstanding for BOX remains at a similar level compared to 1 year ago.
The number of shares outstanding for BOX has been reduced compared to 5 years ago.
The debt/assets ratio for BOX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that BOX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BOX has a Altman-Z score (2.22) which is comparable to the rest of the industry.
The Debt to FCF ratio of BOX is 2.17, which is a good value as it means it would take BOX, 2.17 years of fcf income to pay off all of its debts.
BOX's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. BOX outperforms 68.07% of its industry peers.
BOX has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
BOX's Debt to Equity ratio of 1.99 is on the low side compared to the rest of the industry. BOX is outperformed by 79.65% of its industry peers.
Although BOX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.64
WACC10.88%
2.3 Liquidity
BOX has a Current Ratio of 1.22. This is a normal value and indicates that BOX is financially healthy and should not expect problems in meeting its short term obligations.
BOX has a worse Current ratio (1.22) than 62.11% of its industry peers.
A Quick Ratio of 1.22 indicates that BOX should not have too much problems paying its short term obligations.
BOX has a Quick ratio of 1.22. This is in the lower half of the industry: BOX underperforms 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for BOX have decreased by -6.83% in the last year.
Measured over the past years, BOX shows a very strong growth in Earnings Per Share. The EPS has been growing by 124.22% on average per year.
BOX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.29%.
Measured over the past years, BOX shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y (TTM)-6.83%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-25%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%8.87%
3.2 Future
The Earnings Per Share is expected to grow by 17.45% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.80% on average over the next years. This is quite good.
EPS Next Y-21.9%
EPS Next 2Y-4.68%
EPS Next 3Y4.99%
EPS Next 5Y17.45%
Revenue Next Year7.81%
Revenue Next 2Y7.7%
Revenue Next 3Y8.16%
Revenue Next 5Y10.8%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.05, BOX is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BOX indicates a somewhat cheap valuation: BOX is cheaper than 75.44% of the companies listed in the same industry.
BOX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.42, BOX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BOX is valued a bit cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. BOX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BOX is valued a bit cheaper than 64.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BOX indicates a rather cheap valuation: BOX is cheaper than 85.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 48.31 |
4.3 Compensation for Growth
The decent profitability rating of BOX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-4.68%
EPS Next 3Y4.99%
5. Dividend
5.1 Amount
BOX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.08
+0.45 (+1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners109.3%
Inst Owner Change0.13%
Ins Owners3.21%
Ins Owner Change-0.33%
Market Cap4.79B
Analysts75.71
Price Target37.5 (13.36%)
Short Float %9.25%
Short Ratio6.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP8.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.63%
Min EPS beat(2)4.53%
Max EPS beat(2)14.73%
EPS beat(4)3
Avg EPS beat(4)6.17%
Min EPS beat(4)-0.06%
Max EPS beat(4)14.73%
EPS beat(8)6
Avg EPS beat(8)5.32%
EPS beat(12)10
Avg EPS beat(12)5.98%
EPS beat(16)14
Avg EPS beat(16)5.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.7%
Revenue beat(12)2
Avg Revenue beat(12)-0.73%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.91%
PT rev (3m)0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 21.42 | ||
| P/S | 4.26 | ||
| P/FCF | 15.87 | ||
| P/OCF | 14.19 | ||
| P/B | 21.22 | ||
| P/tB | 33.02 | ||
| EV/EBITDA | 48.31 |
EPS(TTM)1.5
EY4.53%
EPS(NY)1.54
Fwd EY4.67%
FCF(TTM)2.08
FCFY6.3%
OCF(TTM)2.33
OCFY7.05%
SpS7.77
BVpS1.56
TBVpS1
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 82.92% | ||
| ROCE | 8.85% | ||
| ROIC | 6.99% | ||
| ROICexc | 397.58% | ||
| ROICexgc | N/A | ||
| OM | 6.06% | ||
| PM (TTM) | 16.64% | ||
| GM | 78.99% | ||
| FCFM | 26.83% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.17%
ROIC(5y)N/A
ROICexc(3y)141.38%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.07%
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 3Y3.43%
GM growth 5Y2.75%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 133.72% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 355.53% | ||
| Profit Quality | 161.22% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.22 |
F-Score7
WACC10.88%
ROIC/WACC0.64
Cap/Depr(3y)65.86%
Cap/Depr(5y)46.57%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.91%
Profit Quality(3y)1246.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.83%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-25%
EPS Next Y-21.9%
EPS Next 2Y-4.68%
EPS Next 3Y4.99%
EPS Next 5Y17.45%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%8.87%
Revenue Next Year7.81%
Revenue Next 2Y7.7%
Revenue Next 3Y8.16%
Revenue Next 5Y10.8%
EBIT growth 1Y-3.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.43%
EBIT Next 3Y14.64%
EBIT Next 5Y1.46%
FCF growth 1Y0.95%
FCF growth 3Y10.42%
FCF growth 5Y57.36%
OCF growth 1Y5.71%
OCF growth 3Y12.27%
OCF growth 5Y49.35%